Global Congress Combating Counterfeiting and Piracy sustainable solutions through partnership and innovation Len Hynds Director of Anti-Piracy Enforcement 5 th.February 2008

Scale and Scope International dimension Over 1 billion pirate music albums sold worldwide 37% of all CD album sales are pirate product Valued at 4.5 billion US dollars Research data and statistical information

Maximum Impact – Vision for delivery Know the competition – it is the key to beating it Current configuration generates answers to: Who? What? Where? Holistic Intelligence Assessment Lasting solutions emerge when you start to think more about: How? Why?

Maximum Impact – Vision for delivery Underlying question – How do pirate entrepreneurs think about ensuring the viability of their business? Holistic Intelligence Assessment The answer can be modelled looking at four component process loops: Demand driven loop Supply driven loop Margin driven loop Trust driven loop

Margin driven loop Market price Sourcing costs Production costs Distribution & Transaction costs Level of competition Risk Management costs Alternative Market levels Risk factors launderingCommunity Enforcement evasion Politics

Trust driven loop Climate of acceptability Level of anonymity Size of Trusted pool Availability of low Governance jurisdictions Corruptibility Credit Availability And risk Cost structure

Maximum Impact – Vision for delivery Armed with holistic understanding we can identify and build holistic solutions Everything we do must be designed to achieve MAXIMUM IMPACT against one or more of the piracy process loops Four Major Programmes to address: Demand Supply Margin Trust Holistic Intelligence Assessment Bespoke Strategy

Maximum Impact – Guiding principles End game to change behaviour of criminals and their customer base Tackle enablers and take away motivation Maximum traction through genuine and divers partnerships Tackle every facet of the organised criminality Acknowledge and work with, not against the complexity

Maximum Impact – Programmes of Activity Demand TrustSupply Margin Intel. Focus Multi-faceted targeting of most damaging pirate producers Lifetime attention for prolific pirate organisations Bulk data sharing to prevent & deter supply – introduce suspicious trans. project Information operations to reduce trust levels for pirate producers Support and develop members counter-corruption initiatives Maximise marketing benefit of every enforcement success Coordinated asset recovery programme Revenue generation initiatives Production/Distribution cost focused projects Contextualise the communication strategy Engineer worldwide days of action Reverse the Risk-Reward equation

Maximum Impact – Delivery through Partnership Relationships are pivotal to ultimate success –IFPI with RIAA and NGs –IFPI with MPA and other industry bodies –IFPI with complimentary industries (e.g.: technology) –IFPI with International/National Law Enforcement –IFPI with wider public sector (data sharing and agenda setting) –IFPI with Governments –IFPI with academia Provide leadership in partnerships identifying maximum synergy Holistic Intelligence Assessment Bespoke Strategy Business plan for a new era

Maximum Impact – Delivery through Partnership Tools that can operate in support of partnership –TRIPs –WCO - CEN database –DG TAXUD & EU Customs administration –Interpol IPR database Moving forward –Cross industry intelligence activity –Public - Private data sharing –Private sector profiling piracy to support the law enforcement agenda Holistic Intelligence Assessment Bespoke Strategy Business plan for a new era

Maximum Impact – In conclusion A measured response in tune with the problems of today – and tomorrow It must deliver sustainable success through innovation Not just an enforcement strategy – its a hostile take over of music pirates

Thank you Any Questions ? Len Hynds Head of Anti-Piracy Enforcement 16 th.January 2008