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Russia Home

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Russia’s current copyright piracy problem is one of the worst of any country in the world, resulting in losses of over $1.7 billion in 2005 (and well over $6.5 billion in just the last five years). Piracy of all copyright materials ranges from a low of about 67% to a high of 85%. (1) 
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Russia
Estimated Trade Losses due to Copyright Piracy (in millions of US dollars) and Levels of Piracy: 2001-2005
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2005
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2004
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2003
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2002
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2001
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Loss
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Level
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Loss
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Level
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Loss
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Level
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Loss
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Level
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Loss
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Level
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| Motion Pictures |
266.0
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81%
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275.0
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80%
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275.0
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75%
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250.0
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80%
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250.0
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80%
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| Records & Music |
475.9
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67%
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411.9
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66%
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405.0
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64%
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371.9
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66%
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285.0
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64%
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| Business Software |
784.4
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85%
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800.0
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87%
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704.0
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87%
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370.0
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89%
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90.6
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87%
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| Entertainment Software |
223.0
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82%
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255.8
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73%
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N/A
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80%
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N/A
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90%
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173.6
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90%
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| Books |
42.0
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N/A
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42.0
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N/A
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40.0
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N/A
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40.0
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N/A
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48.0
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N/A
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| TOTALS |
1756.2
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1784.7
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1424.0
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1031.9
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847.2
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Source: International Intellectual Property Alliance  |
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| Cosmetics: |
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In Russia, up to 50 % of perfume and cosmetics in the country are believed to be counterfeit. (2)
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| Food and Beverage: |
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In the first half of 2003, 40 % of all alcoholic beverages and 36 % of all food on sale in Russia were counterfeit. Food products were frequently passed off as something else; such as margarine being sold as butter, soybeans as tinned meat and milk substitute as condensed milk. (3)
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In Russia, 42,000 people die from counterfeit alcohol each year, helping to lower Russia's average life expectancy rate to 66, which is 14 years shorter than the European Union average. So far in 2006, the government reports 19,000 counterfeit alcohol-related deaths. (4) |
| Music: |
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Kommersant cited estimates that around 97 percent of music files shared over the internet in Russia today are illegal. Legal sales of copyright-protected music over the internet are estimated at less than $1 million per year in Russia at present, while the real value of music traded online is believed to be between $25 million and $30 million, the paper said. (5) |
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According to Matt Gerson, a Senior Vice President of Universal Music Group, Inc. (UMG), the number of factories producing pirated copies of CDs and DVDs increased from 28 in 2003 to 34 in 2005,” and output, from 330 million to 448 million disks. (6) |
| Software: |
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Russia is ranked 9th in the 2005 PC Software Piracy Rankings: 20 Countries with the Highest Piracy Rates and ranks 6th in the most losses due to software piracy ($1,625 million). Russia made progress in 2005, dropping four places from 2004 "as the result of government and industry efforts to lower piracy, as well as an increase in theshipments of laptop computers, which are more often from branded original equipment manufacturers (OEMs) than from local assemblers. But resellers also report that more consumers seem willing to buy legitimate software as the standard of living rises along with Russia’s economic growth." Furthermore, "between the end of 2005 and the end of 2009, more than 100 million new Internet users will come from China, India and Russia alone." (7)  |
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