27-Aug-99

The Recording Industry Association of America, the trade group representing U.S. record labels, has received a $9.1 million settlement from Pioneer Video Manufacturing, Inc., the largest settlement or monetary recovery ever received in RIAA history. The RIAA states that it had found that Pioneer's CD manufacturing facility in Carson, California, was manufacturing hundreds of unauthorized sound recordings. ""This is a landmark case both for the monetary award received and Pioneer's commitment to cleaning up its business,"" commented Hilary Rosen, RIAA President and CEO. ""It's unfortunate that this case took as long as it did to resolve, but it's clear that once company officials at Pioneer recognized the extent of the problem at their manufacturing plant, they wanted to quickly and completely correct their record. I'm now confident the company will be operating under a completely different set of standards which is good for artists, record companies and legitimately operating CD plants. This case demonstrates this industry's commitment to fighting piracy, and the success of those efforts."" An investigation by the RIAA's anti-piracy team found Pioneer to be manufacturing hundreds of unauthorized sound recordings, the majority of which were by Latin music artists. The RIAA said its investigators warned Pioneer in September 1997 that one of its regular customers was a known music pirate, but Pioneer refused to heed the warning. In addition to the monetary settlement, Pioneer has agreed to implement all of the RIAA's suggested Anti-Piracy Good Business Practices, which give CD plants tools to distinguish between a legitimate and a pirated order.