Piracy
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Global music piracy crept up in 2022, marking the second straight year it has increased after a period of steady decline, according to a report from MUSO, a U.K. technology company. MUSO, which tracks consumption across websites around the world to “to understand the true picture of digital piracy,” logged more than 15 billion visits to music piracy sites in 2022.
Piracy has been a thorn in the music industry’s side for more than two decades. In recent years, however, the widespread adoption of streaming has led to a steep drop in the types of peer-to-peer and file-sharing behavior that once threatened to bring the music business to its knees.
In a world driven by streaming, rather than downloads or CD sales, the industry is increasingly focused on a different set of issues. Key among them is streaming fraud, which is not driven by fan’s desire to have more music at their fingertips. Instead, this activity often involves bad actors siphoning money away from the music business — by running bot networks that play 31-second white-noise recordings nonstop on Spotify, for example.
Growth in streaming revenues shows signs of slowing, meaning that every dollar that leaks out of the music ecosystem is becoming more important to labels. And MUSO’s report shows that piracy, even if it has faded from headlines, isn’t negligible.
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For example, Justin Bieber‘s songs, albums, or “music bundles” — which could include an entire discography — were illegally downloaded over 1 million times across the peer-to-peer/torrent network in 2022, for example, with more than 40% of those downloads coming from the U.S. MUSO detected more than 950,000 illegal downloads of David Bowie‘s music, more than 780,000 across Bruce Springsteen’s catalog, and more than 750,000 involving Bob Dylan releases.
The U.S. accounts for 7% of all piracy traffic picked up by MUSO, third only behind Iran (15.05%) and India (10.29%). Despite the prevalence of streaming among U.S. listeners, their appetite for piracy far outpaces their peers in other major music markets like the U.K. (1.86% of piracy traffic) and Germany (1.92%). And more than half of all the piracy in the U.S. takes place via stream-ripping, which relies on programs to get around YouTube’s copyright protection and convert audio into MP3s.
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In 2019, the RIAA said it was monitoring more than 200 stream-ripping sites. Labels have taken legal measures to go after some of these: In December 2021, a U.S. judge ordered a pair of Russian sites to pay more than $80 million — $50,000 for each of the 1,618 copyrighted works infringed — in damages. The judge wrote that 1,618 was “likely on the low end of Defendant’s indeterminable number of violations.” Tofig Kurbanov, the owner of the sites, subsequently appealed the ruling.
RIAA chief legal officer Ken Doroshow said at the time that “this litigation sets out vital first principles that should chart a path for further enforcement against foreign stream-rippers and other forms of online piracy that undermine the legitimate market for music.” The ruling, he said, “is a major step forward to protect artists, songwriters, record labels, and consumers from one of the most pernicious forms of online piracy.”
Despite the judgement, MUSO’s data indicates that stream-ripping remains the most prevalent form of piracy in the U.S., accounting for more than half of piracy demand in the country (51.3%). This is well above the global average, which MUSO found to be 33.4%.
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Overall, music piracy has fallen by more than half since 2017, according to MUSO. But the company predicts another small rise in 2023.
“For the Film and TV sectors, MUSO’s data indicate that piracy demand will continue to increase across 2023, as inflationary and economic pressures result in subscriber losses for the various legal streaming services,” the company’s report notes. “This will drive users to illegally stream or download the content they want to watch via piracy sites. MUSO does anticipate seeing a similar uptick in music piracy across 2023,” but one that will be “less marked than [in] other industries.”
Digital music piracy still plagues global music creators, with criminals employing new tactics like “bulletproof” internet service providers, but it is not as much of a problem as copyright infringement of film and television content, according to a new report from the Office of the U.S. Trade Representative (USTR).
The USTR’s annual report on “Notorious Markets for Counterfeiting and Piracy” (NML) lists seven websites that pose a threat to music industry creators, the same number as in 2022. Those websites engage in stream-ripping, torrent hosting or illegal downloading of pre-release or newly released digital albums.
The latest USTR report highlights new infringement tactics and growing concerns about how social networking sites like Russia’s VKontakte (VK) and Tencent Music Entertainment’s WeChat in China are facilitating the sale of copyright-infringing or counterfeit products.
While the onset of the COVID-19 pandemic led to an unprecedented spike in online piracy — music, film, television, publishing and software all saw higher levels in 2022 compared to 2021 — music experienced the lowest increase, according to a study by Muso, a U.K. company focused on measuring global piracy, which the USTR highlighted in its report.
Data from Muso determined that from January to August 2022 there were 141.7 billion visits to piracy websites, a 21.9% boost over the same eight-month period in 2021. The most dramatic increase came from film piracy, which grew 49.1% year-on-year. Music saw the lowest increase at 3.87%.
The USTR stresses, however, that while progress has been made in forcing some sites to remove pirated content, the introduction of streaming platforms and their widespread adoption has changed the way media is consumed and done little to stem overall piracy levels, especially for audiovisual works.
“Despite expectations that streaming would help combat piracy, the illegal distribution and consumption of high-quality video content has remained prevalent,” the NML report states.
Reacting to the Notorious Markets list, Mitch Glazier, chairman/CEO of the Recording Industry Association of America (RIAA), said it “shines a much-needed spotlight on the devastating impact of copyright theft on American creators.” He adds that “copyright enforcement is necessary to protect livelihoods.”
New to this year’s report are concerns about an increase in piracy sites utilizing “bulletproof” Internet service providers (ISPs) to facilitate their infringing activities. Bulletproof ISPs are characterized by terms of service that often explicitly advertise leniency in allowing their customers to upload and distribute infringing content.
While right holders have expressed concerns about bulletproof ISPs for several years, in 2022, several submissions noted that the growing reliance by pirate sites on such ISPs made it increasingly difficult for right holders to remove infringing content.
Among the bulletproof ISPs being used by music piracy operations is Amarutu, which provides offshore hosting for criminal activity and ignores takedown requests, the USTR says. The dedicated server page of Amarutu’s website advertises that “DMCA messages will be forwarded to the client for resolution but in most cases action is not required.” Amarutu reportedly has an office location in Hong Kong and is registered in Seychelles, with data centers in the Netherlands, the USTR says.
While most of the sites impacting music creators were the same this year, the USTR notes that MP3juices, a stream-ripper, relocated to host Cloudnet in Singapore last year. The website extracts audio from YouTube videos and allows users to download an mp4 file of the audio, often an unlicensed copy. Right holders say MP3juices has attempted to subvert their efforts to demote it in search engine rankings by creating new domain names that reappear at the top of search results.
The USTR once again included Russian social networking and music streaming site VK in its notorious markets report. VK, Russia’s most-visited website, reportedly facilitates the distribution of copyright-infringing files, including thousands of videos and e-books identified by the U.S. film and publishing industries each month. The site allows users “to easily upload video files, including infringing content” and to stream it through an on-site video player, the USTR says.
As Billboard reported in December, following the pullout of most of the global music industry from Russia because of its invasion of Ukraine last year, VK has returned to pirating music. Dozens of albums from Western artists, including from Taylor Swift (signed to Universal Music Group’s Republic) and Red Hot Chili Peppers (on Warner Music Group’s Warner Records), have become available for download.
Complicating matters, last month Belarus adopted a law that essentially legalizes piracy of music and other forms of copyrighted entertainment, which could make it a hotbed for piracy well beyond its borders — and possibly encourage Russian lawmakers to pass a similar law there.
In this year’s report, the USTR also highlights NewAlbumReleases, which previous NML reports said ran out of the Czech Republic but which uses reverse proxy services to mask its location. The website makes its infringing content available for download on “cyberlockers” like Rapidgator, another “notorious market,” according to the USTR.
Also making the list again is FLVTO, a stream-ripping site known to be operated by Russian national Tofig Kurbanov, which has been a thorn in the side of U.S. labels and the Recording Industry Association of America (RIAA). A U.S. district judge last year approved an order for Kurbannov to pay $83 million in damages for circumventing YouTube’s anti-piracy measures and infringing copyrights of audio recordings, but he has appealed the judgment.
Rounding out the list of music-creator threats are torrent sites Rarbg, known to have operated out of Bulgaria, and 1337x, which utilizes reverse proxy services to mask the location of its hosting servers. Variants of 1337x have been subject to blocking orders in Australia, Austria, Belgium, Denmark, India, Indonesia, Ireland, Italy, Malaysia, Portugal and the U.K.
This year’s NML report identified a new issue, stating that over the past three years, it has identified a growing concern from rights holders about the proliferation of counterfeit sales facilitated by “social commerce platforms” (social media platforms with integrated e-commerce ecosystems). The concern has coincided with the continued growth of e-commerce and the increased movement of many physical sellers to predominantly online platforms.
Rights holders state that while certain social commerce platforms have taken steps to implement anti-counterfeiting policies, many others still lack adequate anti-counterfeiting policies, processes and tools such as identity verification, as well as effective notice and takedown procedures, proactive anti-counterfeiting filters and tools and strong policies against repeat infringers.
While not calling out music specifically in this newer trend, the USTR names Tencent’s WeChat as one problematic platform. Although described by Tencent as a “social communication tool and information publishing platform,” WeChat provides an e-commerce ecosystem that facilitates the distribution and sale of counterfeit products to users of the overall WeChat platform,” the USTR says in its report. Central to the issue is the growing popularity of WeChat’s short video function, “Channels,” to advertise counterfeit goods directly to consumers, who can purchase the counterfeits featured in the videos via a “shopping cart” functionality in the WeChat app.
Tencent’s efforts to combat counterfeiting with respect to WeChat “have been inadequate,” the USTR says. Rights holders have complained to U.S. officials about the lack of cooperation from WeChat in supporting criminal investigations of counterfeit sellers. “WeChat points to collaboration with law enforcement and regulatory authorities but asserts privacy and data security laws prevent certain disclosures of information,” the USTR says in the NML. (Tencent owns Tencent Music Entertainment, which licenses Billboard China).
The Eastern European country of Belarus has adopted a law that essentially legalizes piracy of music and other forms of copyrighted entertainment, which could make it a hotbed for piracy well beyond its borders.
Under the law, which President Alexander Lukashenko approved in early January, copyrighted music, films and other audiovisual content originating from “unfriendly countries” can be used in Belarus without permission from rights holders.
The law doesn’t provide a list of “unfriendly countries.” But based on the Belarusian government’s previous statements, the legislation primarily targets Western nations, which slapped sanctions on Belarus following mass repressions of people for protesting the rigged presidential vote in 2020 and, more recently, because of Belarus’ support of Russia’s invasion of Ukraine.
Belarus has never been a major music market — it does not show up in the IFPI’s ranking of the 62 biggest markets — and the major global labels had traditionally run operations there from their Russian offices. Since the labels pulled out of Russia after the February 2022 invasion of Ukraine, they have also cut ties with Belarus. The country, which sits between Russia to the east and Ukraine to the south, backed Russian President Vladimir Putin’s Ukraine invasion last year by allowing Russia to launch part of its attack from Belarusian territory.
Despite its small stature in the music industry, analysts say that under the government’s piracy-permitting law Belarus could play an outsized role in spurring more global piracy.
“As Belarus is a very small music market — a rounding error in the global market — there will be little direct impact in terms of music revenues for western rights holders,” says Mark Mulligan, music analyst at MIDiA Research.
“What might be impactful though is whether piracy networks start to operate from Belarus, distributing globally but operating under the protection of Belarussian law.”
The music industry is already dealing with a spate of piracy networks based in Russia and surrounding countries that are distributing pirated content to other markets, sometimes on other continents. Among the best-known operations are the stream-ripping websites FLVTO.biz and 2conv.com, run by Tofig Kurbanov, who reportedly lives in southern Russia.
More than two dozen record labels and the RIAA have pursued Kurbanov in the U.S. for copyright damages. Last February, a U.S. district judge in Alexandria, Va., approved an $82.9 million judgement against the Russian for circumventing YouTube’s anti-piracy measures and infringing copyrights of audio recordings. The court found that Kurbanov’s operation drew more than 300 million users from around the world to his sites in a single year. (Kurbanov says he plans to appeal.)
And in Brazil, Paulo Rosa, IFPI affiliate Pro Música’s president, told Billboard in 2021 that most of the fake streams being peddled to consumers in the South American country originate from hacker operations in Russia.
The Belarusian piracy law could nevertheless set an example for neighboring Russia, which for months has been considering a similar move to legalize copyrighted content from certain Western countries. Since the early 2000s, Russia has often followed the example of Belarus in strengthening authoritarian rule.
Belarussian President Alexander Lukashenko speaks during a press conference on December 19, 2022.
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Before the war with Ukraine, Russia had the 13th-largest music market in 2020 with revenues of $328 million, a 58% bump from 2019; it was the fastest-growing market in the world in 2019 and 2020, according to the IFPI.
While Russia’s relations with the West are at their lowest point since Cold War, and many Western companies have left the country, the legalization of piracy would likely further isolate Russia — and could “set back the Russian music industry by decades,” one person at a global music company tells Billboard.
In recent years, Russia had made a substantial effort to shed its reputation as a place where piracy ran rampant. VK, the Russian analog of Facebook, which for years allowed users to share unlicensed music tracks on the platform, eventually cleaned up its act and signed license agreements with global majors a few years ago.
Now that the majors have left Russia, dozens of pirated albums have already been reappearing on VK, including recent releases from Taylor Swift (Midnights, on Universal Music Group’s Republic Records) and Red Hot Chili Peppers (Return of the Dream Canteen, on Warner Music Group’s Warner Records).
The legalization of piracy would certainly make it harder for Western streaming services to start operating in Russia again, says Mulligan. While Russia is still “earlier in its streaming development,” he says, “longer term it could become a significant market and at that stage Western rightsholders would want to ensure that their music is being paid for when it is being consumed at scale.”
New laws legalizing piracy would fly in the face of treaty commitments made by both Belarus and Russia. Both countries are signatories to the Berne Convention and other World Intellectual Property Organization (WIPO)-administered treaties.
“Suspending IP protection as Belarus is presently considering would violate its obligations under these WIPO treaties and would seriously dampen Belarus’ opportunities to become integrated into the global trade community and to secure [Most Favored Nation] status, or to further integrate with the [European Union], thus minimizing its economic opportunities in the long term,” says Neil Turkewitz, president of Turkewitz Consulting Group.
Also, “any actions legalizing piracy would destroy any chance of investment in local creative industries and would hurt local artists and their fans the most,” the IFPI tells Billboard in a statement. “Such actions would be in clear breach of international copyright law and trade agreements.”
A court in India has ordered internet service providers to block access to 20 sites that were used to illegally download audio and video streams in India from platforms like YouTube, the IFPI says.
The civil ruling, published in the High Court of Delhi on Jan. 12, was the first such action in India to tackle the practice of stream-ripping, one of the country’s most rampant forms of piracy. The 20 blocked sites collectively received nearly half a billion visits last year from users based in India, according to the IFPI, which coordinated the action with the Indian Music Industry (IMI) on behalf of Sony Music India, Universal Music India and Warner Music India.
The labels told the court that the “rogue websites” were providing services in which copyrighted content on various platforms, primarily YouTube, could be downloaded in mp3 or mp4 format by copying the link in the space provided in the websites. Because the details of the websites’ real administrators are masked, the plaintiffs’ lawyer argued it would be impossible for them to pursue the websites in separate proceedings regarding individual copyrighted content.
Justice C Hari Shankar, who wrote the order, directed India’s government to issue a notification calling upon the various Internet service providers to block access to the websites in India. (The court order reviewed by Billboard says there are 18 defendants, but IFPI says the decision targets 20 infringing websites and more than 50 urls.)
In India, websites are regularly blocked on the basis of copyright infringement using Section 69A of the Information and Technology Act 2000 (as amended in 2008), Information Technology Rules 2009 and civil procedure rules, the IFPI tells Billboard.
“We welcome this decision and the strong message it sends to operators of stream ripping sites, wherever they may be based, that we are prepared to take the appropriate action against them,” Frances Moore, IFPI’s chief executive, says in a press release.
“Given that it’s the first time a website blocking order has been granted against stream ripping websites, this precedent is an important step in the right direction for the Indian recorded music industry,” Blaise Fernandes, IMI’s president and CEO, says in the same release.
Digital music has been leading the way in the rapid growth of India’s music market, which booked $219 million in recorded music revenues in 2021, up 20.3% from 2020. Streaming, which grew by 22.5% in 2021, now represents 87% of total trade value in the 17th-largest music market, according to IFPI’s Global Market Report.
But the IFPI notes that a study last year found that India still has a rate of piracy more than twice that of most major music markets, with 73% of internet users using unlicensed or illegal methods to listen to music, compared to a global average of 30%. Intellectual property rights theft “is like a cancer,” Fernandes wrote in a 2020 op-ed. “You need both palliative care via social messaging, as well as chemotherapy via the Indian Penal Code or laws that keep up with the needs of India’s digital requirements.”
Beyond India, the recording industry has stepped up efforts to crack down on stream-ripping websites. Courts and authorities in Argentina, Australia, Brazil, Denmark, Ecuador, Indonesia, Italy, Malaysia, Peru, Russia and Spain have all issued decisions over the last few years ordering service providers to block customers’ access to such websites, the IFPI says.
U.S. music companies have also battled stream-rippers, who are often based outside the country. In a case brought by more than two dozen record labels, a U.S. magistrate judge in Alexandria, Va., recommended in December 2021 that the operator of two Russian stream-ripping sites, Tofig Kurbanov, pay $82.9 million in damages for circumventing YouTube’s anti-piracy measures and infringing copyrights of audio recordings.
Kurbanov’s piracy operation drew more than 300 million global users to the sites from October 2017 to September 2018 alone, the court said. (U.S. District Judge Claude Hilton accepted the $82.9 million recommendation last February. In March, Kurbanov told the court he would appeal the judgement.)
As the streaming market has grown globally, the IFPI has also helped coordinate court and police actions to shut down sites peddling fake streams in major recording markets like Brazil and Germany, which are artificially juicing the success of songs and albums.
In France, the fifth-largest music market, a study released this week by a French government organization found that one billion streams — or between 1% to 3% of all streams in the market — were fraudulent in 2021. The report, which analyzed data from Spotify, Deezer and Qobuz, notes that “the methods used by fraudsters are constantly evolving and improving,” and that “fraud seems to be getting easier and easier to commit.”
Lincoln said, “A house divided against itself cannot stand.” It was true then and it’s true today — on great issues like politics and governance and, closer to home, for America’s music community.
We know the costs of division and mistrust. During the Napster era, we lost nearly half the revenue from recorded music. Working together over the last 10 years, we’ve built a robust and thriving streaming economy well on its way to recovering what was lost. But we still have a long way to go.
From powerful platforms that undervalue music to short-sighted attacks on creators’ rights around the world to abuses of new technologies that attack the very idea of human authorship — it’s more important than ever that we unite to face new challenges in 2023 and beyond.
And we know how to do it.
In recent years, the music industry has joined together over and over again to accomplish great things and move music forward.
In 2018, we enacted “once-in-a-generation” Music Modernization Act legislation here in the U.S. to update streaming rights for songwriters and ensure legacy artists are finally paid. We are now working together to protect artists’ free expression through bills like California’s Decriminalizing Artistic Expression Act and the federal RAP Act.
In 2021, we saw a landmark Copyright Directive in the European Union to strengthen music markets and fair pay for artists on all platforms.
Earlier this year, all three major record labels decided to voluntarily disregard unrecouped balances owed by certain legacy performers ensuring these great artists could immediately share in streaming royalties.
And of course, we supported one another through a devastating pandemic, working to sustain small venues and develop public policies and relief programs to reach working artists and songwriters.
Those were all major steps, but new challenges keep coming — including some designed to stoke division and turn our community against itself. Fortunately, we know from our many recent achievements that the music community — and music itself — does best when we stick together in the face of common challenges. Especially at a time when American music is already thriving — across formats, styles, and all around the world with competition, creativity and choice all stronger than ever.
Artists continued to find new ways to reach more fans than ever with do-it-yourself recording and distribution, while independent labels have become the fastest-growing sector of the market. In a shrinking online world where language and geography are no longer barriers, an artist’s potential audience has become almost limitless.
In this dynamic new music business, success is more broadly shared than ever, with growing opportunities and revenues for indie artists and the very top acts taking a smaller share of revenues today than during the CD era. Globally, out of a $10 per month streaming subscription, artists receive roughly $1.35 while labels net $0.55 once the cost of spending to drive artists’ success is accounted for. Meanwhile, the share of revenues going to publishers and songwriters has nearly doubled in the streaming era.
It’s a powerful testament to what all of us who make up the music community have built together.
It is success borne first from the blood, sweat and tears of America’s creators — artists, songwriters, session players and the legions of those who support and distribute music — producers, publishers, road crews and venue operators, tour support, managers, digital services and more.
It is also the product of round-the-clock drive and commitment by the people working at record labels– music lovers who wake up every day fighting for the artists they work with and helping them achieve their creative dreams and commercial goals. From marketing and promotion to brand and design to social media campaigns to wellness and health to business and back office services, labels today do more than ever to support artists and position them to break new ground and thrive.
The labels that make up the RIAA are committed to a future of continued shared growth. We are determined to keep pushing for even more positive change. And we will work every day in this new year to unite our music community with forward-looking policies and goals that benefit artists, songwriters and fans as well as rightsholders and music services.
That means standing together and ensuring creators get full value for their work on every platform, service, game, fitness app and anywhere else it is used — from AM/FM radio to the metaverse. It also means building on shared commitments to diversity, wellness, and equality — both inside and outside the recording studio and across our entire community.
Additionally, it means presenting a united front when tackling the next generation of challenges, including artificial intelligence, where artists, songwriters, labels and publishers have an immense and shared interest in establishing responsible rules of the road that value human authorship and creativity. Also important is fighting against new forms of music piracy and other efforts to undermine the creative economy, from stream ripping to stream manipulation to pre-release leaks that suck the economic value out of the most seminal times in an artist’s career.
All of us who make up this community are bound together by a shared love of music — and a shared commitment to the people who create, distribute, and listen to it.
In 2023, let’s work — together — to turn those values into concrete action that builds a rich and lasting music future for us all.
Mitch Glazier is the Chairman and CEO of the Recording Industry Association of America (RIAA), the trade organization that supports and promotes the creative and financial vitality of the recorded major music companies.