Global CongressCombating Counterfeiting and Piracy

“sustainable solutions through partnership and innovation”

Len HyndsDirector of Anti-Piracy Enforcement

5th.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

Marketprice

Sourcingcosts

RiskManagement

costs

Level ofcompetition

Distribution &

Transactioncosts

Productioncosts

AlternativeMarketlevels

Politics

Enforcementevasion

Community

laundering

Risk factors

Trust driven loop

Climateof

acceptability

Level ofanonymity

CreditAvailability

And risk

Corruptibility

Availabilityof low

Governancejurisdictions

Size ofTrusted pool

Coststructure

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 AssessmentBespoke Strategy

Maximum Impact – Guiding principles

Acknowledge and work with, not against the complexity

Tackle every facet of the organisedcriminality

Maximum traction through genuine anddivers partnerships

Tackle enablers and take away motivation

End game to change behaviour of criminalsand their customer base

Maximum Impact – Programmes of Activity

Demand

Trust Supply

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 NG’s– 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 AssessmentBespoke StrategyBusiness 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 AssessmentBespoke StrategyBusiness 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 – it’s a hostile take over of music pirates

Thank youAny Questions ?

Len HyndsHead of Anti-Piracy Enforcement

16th.January 2008