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Russia Home

country facts and figures

bullet

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) adobe pdf file

Russia

Estimated Trade Losses due to Copyright Piracy (in millions of US dollars) and Levels of Piracy: 2001-2005

 

2005

2004

2003

2002

2001

 

Loss

Level

Loss

Level

Loss

Level

Loss

Level

Loss

Level

Motion Pictures 

266.0

81%

275.0

80%

275.0

75%

250.0

80%

250.0

80%

Records & Music

475.9

67%

411.9

66%

405.0

64%

371.9

66%

285.0

64%

Business Software 

784.4

85%

800.0

87%

704.0

87%

370.0

89%

90.6

87%

Entertainment Software

223.0

82%

255.8

73%

N/A

80%

N/A

90%

173.6

90%

Books

42.0

N/A

42.0

N/A

40.0

N/A

40.0

N/A

48.0

N/A

TOTALS

1756.2

 

1784.7

 

1424.0

 

1031.9

 

847.2

 
Source: International Intellectual Property Alliance adobe pdf file
Cosmetics:
bullet

In Russia, up to 50 % of perfume and cosmetics in the country are believed to be counterfeit. (2)

Food and Beverage:
bullet 

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)

bullet  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:
bullet 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)
bullet 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:
bullet 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) adobe pdf file
 

2005 GLOBAL PC SOFTWARE PIRACY

 

Piracy Rates

Piracy Losses (millions)

2005

83%

1,625

2004

87%

1,362

2003

87%

$ 1,104

Source: THIRD ANNUAL BSA AND IDC GLOBAL SOFTWARE PIRACY STUDY adobe pdf file

bullet  Scales of Gray Import and Counterfeit Production in the Russian Consumer's MarketState University - Higher School of Economics (GU-VShE).adobe pdf file  
bullet  The Cost of Counterfeit Consumer Goods in Russia,Deloitte & Touche CIS, June 28, 2000.adobe pdf file

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