Ukraine CD piracy curbs 'too lax'

Ukraine has become a leading source of counterfeited CDs

Record industry chiefs have warned Ukraine that draft measures for clamping down on compact disc piracy are too weak to prevent the country from falling foul of US trade sanctions.

The London-based International Federation of the Phonographic Industry (IFPI) said Ukraine had missed its "last opportunity" to avoid sanctions threatened by the US over counterfeiting claims.

And Eric Schwartz, vice-president of the International Intellectual Property Alliance, whose members include the Recording Industry Association of America, said:

"We are deeply disappointed that Ukraine has not passed an effective law and instead is rushing through an ineffective law."

The comments followed the passing on Thursday by Ukraine's parliament, Rada, of watered down measures for allowing prosecutors powers to raid compact disc (CD) production plants.

Illegal trade

Ukraine has been accused of being at the centre of an illegal CD, CD-rom and DVD production trade.

Pirated CDs are sold in Eastern Europe for, typically, one fifth the price of legally manufactured items.

The record industry loses $300m a year to counterfeiters, analysts have estimated.

The US has proposed from next week to impose sanctions on $75m of Ukrainian imports unless the country acts to protect counterfeiters.

While Ukraine's government has proposed allowing prosecutors a free rein in raiding CD factories, some deputies have warned the move could threaten the country's nascent high-tech industry.

US probe

There has as yet been no official US reaction to the measures passed by Rada on Thursday.

A spokesman for the US Trade Representative's office said the agency would closely examine the legislation before making any decision on revoking sanctions.

"We look for the government of Ukraine to fulfil the commitments it made to us, most recently in December 2001, to pass a good... bill.

"Any bill that falls short of that will not be adequate to solve this problem."