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REPORTS
Regional Notes E-government initiative moves forward
US miffed over GM, plays down FTA chances Management hopes foil TE mobile bid
Confusion reigns, policies clash on reconstruction Cassettes seized in biggest ever pirated music bust
Egypt boasts LNG export capacity but lacks infrastructure Demand for private English lessons high despite ban
Sixth grade to be revived, children register discontent

cassettes seized in biggest ever pirated music bust

the enforcement of new ipr laws took a highly publicized step forward in june with the biggest bust of pirated music tapes in the history of the middle east. on june 9, giza security officers seized around 2 million counterfeit arabic-language music cassettes, representing 36 different registered trademarks, in a raid in al ayyat farm, just south of giza. according to reports, authorities also confiscated one million plastic tape jackets, six duplication machines and two printing machines, while one person was arrested at the scene.

“the egyptian authorities are now showing they take the protection of intellectual property rights seriously, and are committed to the fight against music piracy,” commented ahmed al fouly, head of the egypt office of the international federation for the phonographic industry (ifpi), an anti-piracy organization representing multinational recording companies. the police, in fact, coordinated the raid in conjunction with the ifpi, along with the egyptian central association of audio producers.

according to statistics, the illegal copying of audio or video recordings is a $4 billion per annum business, globally speaking. ifpi figures indicate that in 2002, the egyptian music industry alone lost $8.2 million due to piracy.

the middle east in particular has often been criticized for poor copyright protection. egypt currently resides on the us government’s piracy “watch list,” as around 50 percent of its local music sales are of the pirated variety. in some other countries in the region, the problem is even worse. in lebanon, some 70 percent of music sales are reportedly pirated.

the multinationals, until now, simply haven’t been able to vie with the parallel market. “we cannot compete with the pirates,” said ahmed marei, former managing director of sony music egypt, which closed its cairo office in september after only 10 months in operation. according to marei, sony found it impossible to survive in a market dominated by piracy, which vastly undercut sales of both arab and western music. “we were losing tremendously,” marei noted. “thirty to 40 percent of our budget went to marketing costs, whereas in the piracy business, it’s profit all the way.”

in an attempt to make the environment more multinational-friendly, the government passed intellectual property rights (ipr) legislation in june 2002. the four-chapter law protects original works of literature and arts in a way that will “usher in a new era of strict enforcement of copyright, leading to deterrent results against piracy, lowering piracy levels and... resulting in commercial gains,” according to a recent report by the international intellectual property alliance, a us-based organization monitoring copyright infringements.

marei was not so sure. calling the current state of the local music industry “a catastrophe,” he said that unless authorities strictly enforce the new law, international recording labels will continue to steer clear of the region. “three conglomerates – universal, emi and warner – were planning to launch in cairo,” he said. “but now they’ve changed their minds.”

perhaps the latest show of force will persuade them to reconsider, but in the meantime, the black music market will probably prove as resilient as other black markets in recent memory.

after all, for most lower income egyptians, recorded music is a luxury they wouldn’t be able to afford if forced to pay commercial prices. currently, pirated versions of albums by artists like amr diab, sherine or hakim – often of substandard quality – are easily available for around £e 2.50 each, as opposed to £e 10 for an authentic, commercial copy. “all i care about is hearing the songs on the tape,” said adel el dessouki, a 42-year-old taxi driver. “i don’t care if they’re unauthorized as long as i get the same tape for only £e 2.50.”

the selling of pirated cassettes has been going on since long before anyone ever heard of ipr, and the practice thrived in the lax legal environment. but even as enforceable laws come into effect, vendors of pirated material maintain they’re not doing anything wrong. “pirated tapes have been in the egyptian market for years now. we never felt that this business is illegal and we were never arrested,” said one dokki vendor of pirated music. “we do not cheat people. they know perfectly well that they buy pirated tapes at cheaper prices.”

a source at the giza police department, meanwhile, said the case pertaining to the raid has already been forwarded to the prosecutor’s office, and a committee at the censorship department is examining the seized merchandise in preparation for impending hearings.

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