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A suit against Napster was put on hold after the company filed for bankruptcy protection. In addition, the industry has filed lawsuits targeting peer-to-peer file-swapping services including Audiogalaxy and the distributors of Morpheus, Kazaa and Grokster. The report comes as the recording industry increases its enforcement efforts, including lobbying for federal anti-piracy funding. The IFPI estimated that in May 2002, there were approximately 3 million people and 500 million files available for copying at any one time on all of the peer-to-peer services worldwide. The IFPI said the Web is being used to sell counterfeit, unauthorized compilation and other physical pirated products. Moreover, the IFPI said various online peer-to-peer services have encouraged the widespread unauthorized copying of music. The group added that the widespread availability of cheap disc-replication equipment, the prevalence of high-speed burners, and a drop in blank CD-R prices are fueling the growth of CD-R piracy in countries including the United States.ДЄccording to the IFPI, 2.8 million pirated CD-R discs were seized in the United States last year, compared with 1.6 million in 2000. It said illegal production is roughly split between large-scale manufacturing plants and small garages and laboratories. The IFPI attributed the proliferation of illegal music to organized CD-R (CD-recordable discs) piracy.

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In addition, they do not include the value of music traded online over free file-swapping services.

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Because those numbers use the prices for pirated discs and not legal prices, they do not measure the full economic loss to recording industry, the IFPI said.

However, declining prices kept the total value of the unauthorized CD market nearly flat, at an estimated $4.3 billion worldwide in 2001 compared with $4.2 billion the previous year. The International Federation of the Phonographic Industry (IFPI), a lobbying group, said pirated disc sales jumped from 640 million units in 2000 to 950 million units in 2001. CD burning contributed to a surge in music piracy across the globe in 2001, with sales of pirated discs jumping an estimated 50 percent from the previous year, according to an industry report released Tuesday.

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