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CD Ring Busted In Queens
Posted by milla on December 12, 2002 at 1:44 PM   (printer friendly)

By Lydia Polgreen, New York Times


A Secret Service raid of a Queens warehouse on Monday broke up what recording industry experts are calling the largest music CD counterfeiting operation ever, capable of churning out six million discs a year.

The raid of a 2,000-square-foot factory in Long Island City was the result of a two-month investigation by the Secret Service, which enforces copyright law, and former law enforcement officials working for the Recording Industry Association of America, said Frank Creighton, head of the antipiracy division of the organization, a trade group.

The seizure of 35,000 illegally copied music discs, 10,000 movies on DVD, 421 interconnected disc burners and expensive printing equipment made it the largest raid in the more than 30 years the trade group has been tracking such seizures, Mr. Creighton said.

The company supplied illegal copies of CD's and DVD's to distributors along the Eastern Seaboard and in the Midwest, Mr. Creighton said, but was also a major supplier for illegal Canal Street peddlers.

"It is the largest manufacturing operation involving CD-R manufacturing technology to date that we have come across," Mr. Creighton said.

Three men were arrested, including Zhong Rong Chen, who investigators identified as the head of the counterfeiting operation. Two of his employees, Angel Ivan Espinoza and Mario Perez Flores, were also charged, investigators said.

The building where Mr. Zhong's factory was located, on 37th Street in Long Island City, has mostly garment manufacturers and artists' lofts. People who work in the building were rattled when a crowd of officers battered down the door to the second-floor loft Monday.

Mr. Zhong was quiet and secretive, a factory manager said. "Sometimes he would come to work when we were leaving," the man said. "We thought maybe he was trading overseas or something."

In recent years the trade in counterfeit CD's and DVD's has become more competitive and as a result more violent, leading to two shootouts in Midtown Manhattan, one of which left a Guinean immigrant dead last month.

Mr. Creighton said that his organization focuses on breaking up counterfeit operations, especially around the holidays, when people flood the streets of New York City looking for bargains. But as the recording industry has struggled with slumping sales in the last two years, and because technology makes mass production of flawless copies easy, piracy has become a larger problem.


User Comments (These do not necessarily reflect the beliefs of this site)

Svensta  
Date: December 12, 2002 @ 3:23 PM
Speaking as a satified customer of many a blanket store-front Canal Street illict merchant....

You will never catch em all :)

I don't think this is bad, actually it will turn the attention from innocent filesharers to criminals actually trying to PROFIT off of someone else's sweat and labor.

That being said, let me tell you the quality level on these pirated versions are fantastic, matching the output of the genuine article right down the packaging.

Frawgster  
Date: December 12, 2002 @ 3:40 PM
Bust 'em! Like Sven said...it'll turn their attention from us small time sharers to those making a shitload of money off of someone elses lablr.

tomsong  
Date: December 12, 2002 @ 3:59 PM
NOBODY would quarrel with busting up commercial thieves.

Knowing the open sidewalk activities, I always have questioned "why" the RIAA chooses to look the other way when walking about the streets of Manhatten. You might make the argument that the difference is "reprinting perfect packaging." Why doesn't the RIAA make publicity stunts more often like this?

We may guess (a) Possible violence (b) Prefer to let the FBI use tax dollars as corporate police work (c) It would be most important to target students, corporations,and universities for music-browsing crimes.

thumbtack  
Date: December 12, 2002 @ 5:04 PM
Exactly Tom, Svenska and Frawg. The whole time the debate has been raging about filesharing and shutting down the filesharing software companies, Canal Street is famous throughout America for the super cheap CD's. I heard about all the way down here in the sticks in Virginia. This afternoon I was told about CD stores in Brighton Beach area of NY that basically sell the same CDs. See the article posted by George about the RIAA's own numbers.

princess-angry  
Date: December 12, 2002 @ 6:29 PM
dang!!!! it's just a manufacturing..... oh well... at least it was kinda scalable....

Frawgster  
Date: December 12, 2002 @ 6:58 PM
What is this "Canal Street" I'm reading.

(Note to self: Visit N.Y.)

/ignorant Texan

spikester  
Date: December 12, 2002 @ 7:40 PM
oh loook, they finally get a group of real pirates. :)

W-B  
Date: December 12, 2002 @ 7:57 PM
In answer to "tomsong's" question of "Why doesn't the RIAA make publicity stunts more often like this?", it only further highlights this double standard in place. You know Rosen, Sherman, Berman et al. don't dare badmouth illegal immigrants, certain ethnic minorities, or Mafia crime families (some months ago, another Long Island-based piracy ring which had ties to the mob was busted) for fear of a tidal wave of backlash or "racial profiling" controversies. And, for the most part, the REAL piracy is being committed by each of these three groups. Yet smearing the average consumer as they do, THAT they can get away with. Their whole goal all along is to penalize the "many" for the actions of a "few."

Sadly, the RIAA won't learn diddly-squat from this, only to use this latest bust as an excuse to even further push their mantra of "the average consumer can't be trusted and thus we're justified in plunging our culture into a technological Dark Ages."

Remye  
Date: December 13, 2002 @ 8:32 AM
omg! pirates on Canal Street? now that's a shock (said the guy from NJ who has bought many a cd on Canal Street and in the neighborhood).
Hope this gets all the press and LAWSUITS it deserves. These guys are the real reason that the RIAA is "losing" money, not Joe SixPack and his 12x cd burner. It's still about the numbers tho. They won't sue or talk about the guy who does this kind of shit in his basement to the tune of about 20K a year. They'll find some loophole to walk em out of court, then say the system let em (the RIAA) down.
I kinda like the "fbi as corporate police" line tho, been thinkin that for years. Poses the question yet again tho, when did it become the mission and objective of a taxpayer funded agency to pursue the interests of a company v. the interests of the taxpayers? Maybe if we quit payin taxes.... but that's another rant

INeedAlover  
Date: December 13, 2002 @ 9:44 AM
I find it amazing that the RIAA doesn't have figures on how many billions pirates like this have cost them. But, let's do the math. 6 Million discs a year that the RIAA sell for an average of $14 each. WOW, $84 Million dollars!!! Gee, with the legal fees they've piddled away on Joe Schmoe in the basement, they could have gotten a real return had they went after theives like these themselves! DUH!!!

milladrive  
Date: December 13, 2002 @ 2:32 PM
(Note to Frawg: Visit NY)

Svensta  
Date: December 14, 2002 @ 7:03 PM
Think I will scan some pics of the latest Canal Street purchase I made. A copy of the Spiderman DVD for 8 bucks. I dare anyone to point out the differences between a real one and this one. Then again, I don't know if it was a pirated copy or one that fell off the back of a truck somewhere :shrug:

Cryxan  
Date: December 16, 2002 @ 3:30 AM
Yeah, I'm thinking the same thing as Frawg. This Canal Street sounds like I place I should experience for myself. >:D

milladrive  
Date: December 16, 2002 @ 8:51 AM
(Note to Cryxan: Visit NY)

dzk  
Date: December 16, 2002 @ 5:07 PM
music should be free