November 4, 2007

ICE seizes over 90,000 counterfeit CDs and DVDs

ARECIBO, Puerto Rico. - U.S. Immigration and Customs Enforcement (ICE) special agents, working with officials of the Motion Picture Association of America (MPAA) and Recording Industry Association of America (RIAA), seized here yesterday more than 90,000 copies of counterfeit CD's and DVD's at one of the largest flea markets in the municipality of Arecibo, Puerto Rico. These seizures were part of Operation Digital Pirates II, an ICE investigative initiative into the identification of intellectual property rights (IPR) violations.

More than 90 ICE, MPAA and RIAA law enforcement officers participated in this operation in an effort to dissuade alleged "digital pirates" from engaging in this criminal activity.

The operation was the second largest in Puerto Rico since ICE launched Operation Digital Pirates I in May 2007 in 11 municipalities across the island. Digital Pirates I netted the seizure of more than 53,000 counterfeit CD's and DVD's at flea markets in Mayaguez, Arecibo, Vega Baja, Aguadilla, Hatillo, Vega Alta, Bayamon, Rio Grande, Salinas, Guayama and San Juan, Puerto Rico.

"Investigating those who produce, sell and distribute pirated or counterfeit merchandise is an important role of ICE," said Roberto Escobar Vargas, acting special agent-in-charge of the ICE Office of Investigations in Puerto Rico. "Counterfeiters cost legitimate businesses billions in lost revenue. The illicit proceeds from counterfeiting are also routinely used to support other criminal activities in the U.S. and around the world."

"When flea markets become pirate bazaars, they undermine the local economy by hurting legal businesses and deprive the government of critical revenue," said Brad Buckles, Executive Vice President, Anti-Piracy, RIAA. "Ultimately, everyone loses but the criminals when piracy is left unchecked. We applaud the many the law enforcement agencies involved in taking this important action to protect music and other industries from theft."

Although there were no arrests during yesterday's operation, ICE special agents interviewed the alleged owners of the approximately 32 kiosks with counterfeit merchandise to advise them of their violation of law.

ICE does not rule out filing criminal charges for violations to Title 17, United States Code (USC) Section 506 and Title 18, USC, Sections 2318, 2319A and 2330.

A person convicted for these crimes can face a sentence of up to five years in federal prison or 10 years if charged with Title 18, USC 2320.

In recent years, counterfeiting, piracy, and other Intellectual Property Rights (IPR) violations have grown in magnitude and complexity, costing U.S. businesses billions of dollars in lost revenue and often posing health and safety risks to U.S. consumers. Industry and trade associations estimate that counterfeiting and piracy cost the U.S. economy between $200 and $250 billion per year, a total of 750,000 American jobs.

The growth in IPR violations has been fueled in part by the spread of enabling technology allowing for simple and low-cost duplication of copyrighted products, as well as by the rise in organized crime groups that smuggle and distribute counterfeit merchandise for profit. In many cases, the enormous profits realized from the sale of counterfeit goods are used by international organized crime groups to bankroll other criminal activities, such as the trafficking in illegal drugs, weapons and other contraband.

As the largest investigative arm of the Department of Homeland Security, U.S. Immigration and Customs Enforcement (ICE) plays a leading role in targeting criminal organizations responsible for producing, smuggling, and distributing counterfeit products. ICE investigations focus not only on keeping counterfeit products off U.S. streets, but also on dismantling the criminal organizations behind this activity.

In fiscal year 2006, U.S. Customs and Border Protection (CBP) and ICE marked an 83 percent increase in the number of IPR seizures, including 14,675 seizures of counterfeit goods worth more than $155 million, a 67 percent increase from the year before. ICE investigations resulted in 219 arrests, 134 indictments and 170 convictions in intellectual property rights violations.

Between fiscal years 2002 and 2006, ICE agents arrested more than 700 individuals for IPR violations and dismantled several large scale criminal organizations that distributed counterfeit merchandise to nations around the globe. At the same time, ICE investigations into these networks resulted in 449 criminal indictments and 425 convictions. Together, ICE and CBP seized more than $750 million worth of counterfeit goods from fiscal year 1998 through fiscal year 2006.

-- ICE --

U.S. Immigration and Customs Enforcement (ICE) was established in March 2003 as the largest investigative arm of the Department of Homeland Security. ICE is comprised of five integrated divisions that form a 21st century law enforcement agency with broad responsibilities for a number of key homeland security priorities.

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