CD-R RECORDINGS OF MP3 FILES (info from the BPI)

This section explains the legal position regarding the sale of MP3 files on CD-Recordable (CD-R) discs.

What is MP3?

MP3 is a format used for compressing audio files. MP3 files are generated as follows: a computer user inserts a standard music CD into the CD Rom drive of his computer. He then runs an MP3 software programme which will "rip" the audio signals in the tracks on the standard CD and compress them into MP3 files.

These files are stored on the computer's hard drive and can then be copied onto CD-R discs. The difference between the original standard CD and the CD-R is that the CD-R will carry many more recordings because the music has been compressed. An MP3 compilation CD-R could carry over 150 tracks (equal to around 11 albums). Portable MP3 players which can play MP3 files downloaded from a PC are also readily available.

Is MP3 legal?

MP3 itself is not illegal. However no legitimate record company has ever issued to the public commercially available audio recordings in the MP3 format on CD-R. The sale of CD-Rs containing MP3 files ripped and copied from commercially available albums will always contravene the Copyright, Designs and Patents Act 1988, will very often contravene the Trade Marks Act 1994 and, in some circumstances, contravene the Trade Descriptions Act 1968.

Isn't MP3 a grey area?

No. The sale of unauthorised copies of copyright works is without doubt a criminal offence. Do not believe anyone who claims it is a grey area. What about MPEG video or similar products? The compression format or type of product does not affect its legality. If unauthorised copies of copyright material or items bearing trade marks without licence are sold then criminal offences will be committed. Likewise if counterfeit video products are sold, offences under the Video Recordings Act 1984 may be committed.

What are the penalties for selling MP3 files on CD-Rs?

The Copyright, Designs and Patents Act and Trade Descriptions Act carry maximum penalties of 2 years imprisonment. Conviction on indictment under the Trade Marks Act could lead to a maximum 10 year prison sentence. In addition, infringing copies can be seized and forfeited. Business premises become subject to inspection (or the home, if the business is run from home) and computer equipment may be seized and forfeited.

MP3 files on CD-R are often sold at computer fairs.
There are approximately 120 computer fairs each month in the UK. Trading Standards and police have been clamping down on these fairs, arresting traders selling MP3 CD-R compilations, closing down stalls and seizing all the infringing goods. The BPI and MCPS assist Trading Standards with the examination of the seized goods.

More info is available here

TYPES OF SOFTWARE PIRACY

Softlifting

Purchasing a single licensed copy of software and loading it on to several computers contrary to the license terms. For example, sharing software with friends, co-workers and others.

Uploading and Downloading

Making unauthorized copies of copyrighted software available to end users connected by modem to online service providers and/or the Internet.

Software counterfeiting

Illegally duplicating and selling copyrighted software in a form designed to make it appear legitimate.

OEM unbundling

Selling standalone software that was intended to be bundled with specific accompanying hardware.

Hard disk loading

Installing unauthorized copies of software onto the hard disks of personal computers, often as an incentive for the end user to buy the hardware from that particular hardware dealer.

Renting

Unauthorized selling of software for temporary use, like you would a video.