The British Phonographic Industry (BPI), the Federation
Against Copyright Theft (FACT) and computer software body ELSPA
(Entertainment and Leisure Software Publishers Association)
assisted in the six-month investigation, which was conducted by the
Department for Work and Pensions.
The operation uncovered five major duplicating factories; from
which counterfeit CDs, DVDs and computer games were distributed and
sold.
According to the BPI, around 70% of the gang's fakes were sold
at Liverpool's two worst piracy hotspots, Stanley Dock and Walton
Market, with another 30% sold on to smaller units in the Liverpool
area. The DWP estimates that an average counterfeit stall in
Liverpool was turning over £4,000 a day.
Those arrested are the first to face multiple criminal fraud
charges collectively brought by the BPI, FACT and DWP. The charges
mark a growing trend of cooperation between the Government and the
creative industries in fighting benefit fraud and intellectual
property theft.
If convicted, the suspects face having the proceeds of their
crimes confiscated.
"The criminal gangs that control the production, manufacturing,
distribution and sale of counterfeit goods may have become
increasingly organised and large in number, but so have we,” said
BPI Director of Anti-Piracy David Martin.
“By taking a multi-agency approach to tackle this growing
problem, we can not only pool our intelligence and resources, but
seek far stiffer penalties for those who profit at the expense of
the creative industries and the taxpayer alike," he added.
