WRITTEN QUESTION E-3094/01

by Stavros Xarchakos (PPE-DE) to the Commission

(13 November 2001)

Subject: Counterfeit compact discs

According to reports in the Greek press and statements by representatives of record companies in Greece, CD piracy has assumed vast proportions, with the situation in Greece comparable to Egypt in 1984. At European level, Greece is far and away the top player in this respect, while worldwide it is in the top ten, alongside such countries as Malaysia and Paraguay. Illegal production of compact discs accounts for 50 % of the current market in Greece, totalling 9-10 million counterfeit discs.

Furthermore, estimates published in the Greek press indicate annual losses of government revenue from tax of Drs 7 billion. According to the Economic Crime Squad, it constitutes a serious crime which the public becomes inured to, it creates an uncontrolled parallel economy with high untaxed earnings, while creating indifference among some sections of society to a criminal act on the pretext of social tolerance.

What are the Commission's views on this unprecedented situation in Greece? What are the corresponding figures for the other 14 Member States? Have the Greek authorities informed the Commission of the extent of the problem? What steps will the Commission take at European level to eliminate it?

Answer given by Mr Bolkestein on behalf of the Commission

(18 December 2001)

The Commission is aware of the phenomenon of Compact Disc (CD) piracy on a global scale, but also in Europe and in certain Member States. In view of the increasing problem of counterfeit and pirated goods and its negative effect on innovation and employment, the Commission consulted interested parties in 1998 by means of a Green Paper(1) to determine the economic impact of this phenomenon on the single market, to assess the effectiveness of the applicable legislation and suggest approaches that could be explored with a view to improving the situation.

The results of this Green Paper led to the development of an Action Plan (Communication of 30 November 2000 on the follow-up to the Green paper on combating counterfeiting and piracy in the single market(2)) containing actions to be carried out as a matter of urgency and notably: a proposal for a Directive for strengthening the means of enforcing intellectual property rights, improving exchange of information and administrative cooperation; in the framework of existing programmes, training activities for officials of law enforcement authorities; and the launching of a study on a methodology for collecting, analysing and comparing data on counterfeiting and piracy. Of these actions, the Commission is at present finalising the proposal for an enforcement Directive; it is developing active training programmes for Member States and is continuing and adapting further training programmes for applicant countries (for example, via the TAIEX, PHARE and TACIS programmes) and has already launched the study mentioned which should be completed in the course of 2002.

In addition to these actions, which are either envisaged or already under preparation, the Commission has regular contacts with all Member States concerned with a view to receiving up-to-date information and exchanging views on how to curtail piracy more effectively.

(1) COM(98) 569 final.

(2) COM(2000) 789 final.