Rs 150 mn lost to mobile music piracy p.a.

MUMBAI: With India crossing 100 million mobile subscribers and approximately 25-30 per cent of the phone models in the market capable of music transfers, music piracy has assumed a new avatar in the name of Mobile Chip Piracy.


Considering royalty for the music industry on products like full songs download at approximately Rs 5 per download and that there is only one illegal transfer permitted per phone per month the loss amounts to Rs 12.5 million (Rs 1.25 crores) per month or Rs 150 million (Rs 15 crores) annually.


The legitimate size of the music market on mobile phones is estimated to be Rs 4 billion (Rs 400 crores), which includes products like ring tones (monophonic and polyphonic), true tones, ring back tones, full song mobile downloads and music videos.


Mobile chip piracy attracts provisions of the CR Act under Sections 51, 52A, 63, 65 & 68A. The persons who can indulge in mobile piracy include mobile phone dealers, mobile phone repair shops, computer/ computer accessories dealers, shops selling video games, games parlours etc.


The Indian Music Industry (IMI) carried out over a 100 raids pan India as a step towards controlling the situation. Other initiatives of IMI include carrying out special induction training programs for police officials to help give them a clear understanding of the flourishing racket and how it operates.


Every revenue-generating stream of the music industry is hit by piracy. It’s most rampantly affecting the film, gaming and music segments of the entertainment industry. When copyrighted sound recording is stored or copied on devices like cassette, CDR, Computer Disc, floppy, portable digital storage device like a USB or memory card, without the permission of the rightful owner it amounts to infringement of the rights of the owner.


Digitized music can be easily copied from any storage device like computer hard disc or USB drive, mobile phone with stored music etc into the built in memory of a mobile phone or on memory cards or chips which can be further inserted into other mobile phones. When such activity is done for commercial gain without the permission of the right owners it is Mobile Chip Piracy.