1. IRMA Anti-Piracy Compliance Programme

2. What is IRMA? International Recording Media Association IRMA developed the Anti-Piracy Compliance Programme in conjunction with major software and record companies in order to help stem the growing piracy problem. The programme is based upon the ISO9001 standard.

3. IRMA Membership More than 490 multi-international companies in more than 40 countries are part of the programme, thereby representing all the credible CD and DVD replicators.

4. How big is the Piracy Issue l The following slides outline the size of the piracy problem both in terms of the the value lost to the market, the units that represents, which areas of the world have the biggest piracy problems and the resultant impact on content owners in various parts of the world.

5. Some statistics pirate audio sales (excluding downloading and home copying): In billion euro;s Actual losses to our market are substatially greater

6. Global pirate market: 1.800.000.000 units in 2002 Source: IFPI

8. The software industry lost over $12 billion worldwide to software piracy in 2001 (source BSA)

9. What is piracy? The term piracy is generally used to describe the deliberate or unintentional infringement of copyright on a commercial scale. It is the What is piracy? The term piracy is generally used to describe the deliberate or unintentional infringement of copyright on a commercial scale. It is the unauthorized duplication of an original recording or file for commercial gain without the consent of the rights owner.

10. What is piracy? It falls into three main categories: What is piracy? It falls into three main categories:

12. 2. 2.Counterfeit Counterfeit goods are copied and packaged to resemble the original as closely as possible. The original producer’s trademarks and logos are reproduced in order to mislead the consumer into believing that they are buying the original product. This is the biggest area of risk to your product and to us as a reputable replicator.

13. 3. 3.Bootlegging The unauthorized recording of a live or broadcast performance. The recording is then duplicated and sold without the permission of the composer, artist or record company. The packaging may or may not be of a good quality.

14. Legitimate Replicators and Piracy Pirates intentionally use legal mastering houses and replicators to manufacture pirated material. They do so in order to manufacture product of the highest possible quality (same as original) and to hide their activities. They do so by misrepresenting themselves.

15. Legitimate Replicators and Piracy A legitimate customer may unintentionally present pirated material to a replicator because they do not know the true copyright holder. Or because they do not understand copyright protection laws.

16. What is Copyright Law Copyright laws are in place to protect the rights of owners of intellectual property (IPR’s). The protected rights are based on the premise that the created work has a financial value. The fact that these rights can be transferred only makes identifying the actual rights holders more difficult.

17. Intellectual Property Rights (IPR) Intellectual property can come in several forms: Inventions – processes or equipment. Generally Inventions – processes or equipment. Generally protected by registered patents. protected by registered patents. Trademarks – logos or marks. Protected by Trademarks – logos or marks. Protected by trademark registration. trademark registration. Copyrights – written works (software, music, Copyrights – written works (software, music, books). Protected by registration under copyright books). Protected by registration under copyright laws. laws.

18. What rights are there in a recording? The right of the author, composer, writer or creator (or their publisher) in the underlying work (I.e, the song, musical, video work and- or the lyrics.The right of the author, composer, writer or creator (or their publisher) in the underlying work (I.e, the song, musical, video work and- or the lyrics. The right of the producer of the recording often called producer or neighbouring rights i.e. the record CompanyThe right of the producer of the recording often called producer or neighbouring rights i.e. the record Company

19. What rights does the composer have? l The right to be paid for each usage of the work. In the case of music and lyrics, this is covered by payment through the MCPS and the issuing of an MCPS licence.

20. What rights does the owner of the producer rights have? The right to copy or replicate on a commercial basis.The right to copy or replicate on a commercial basis. The right to distribute copies to the public;The right to distribute copies to the public; The right to import or export copies;The right to import or export copies; The rights in public performance.The rights in public performance.

21. How do copyrights or neighbouring rights affect Corporate Media ? When you manufacture, without a license for that reproduction, you (the replicator) will have infringed those copyright(s) or neighbouring rights. Even a warranty and/or declaration from you, our customer, that you have obtained all the necessary rights for the order, or even an indemnity regarding any legal claims, it is Lynic who will be performing the actual copying, and will be held responsible for it. We also have to make sure that you have paid the rights to the creator of the song (Mechanical Reproduction Rights - MCPS )

22. What do we need you to do? l Ensure that when placing your order, it is supported by either an “Intellectual Property Rights Form” or a “Copyright Owner’s Letterhead”. Both of these are available electronically or in hard copy format. l If the content is music, please supply a copy of the MCPS licence (unless exempt).

23. Completing The IPR Form l The IPR form is used when you are the creator of the content. If the master contains nothing but your original content, complete the declaration in the first section, tick yes to say that you own the entire content owner and sign the bottom of the form.

24. Completing the IPR Form – Cont. l If the content of the master includes music or software that you have licensed, you should tick the “no” line and then complete section 1, 2 or 3 depending on the format and then send the form together with copies of the licences to us.

25. Using the Copyright Owners Form l If you are placing the order on behalf of a third party and they own the entire content of the master, we can accept either an IPR form completed by them, or an original letter on their headed paper as per the “Copyright Owner’s Letterhead” form that is giving their approval for replication to commence.

26. What we will do l Each master will be examined to ensure that there are no additional licensed files or tracks other than those which you have declared. l If we do need clarification on any files or tracks, we will advise you of what further information you need.

27. Why are we part of the IRMA programme? l We feel it vital that we offer you, our customer a level of security so you are safe in the knowledge nobody could present your product to us (or any other member of the scheme) for unlawful replication.

28. Any Questions? l Please contact your Sales or Customer Services Manager with any questions you may have. l Further information is available at the IRMA website: www.recordingmedia.org

29. Proud to Protect Your Rights