Physical CD piracy refers generally to the creation of any CD that contains copyrighted audio material. The Recording Industry Association of America sets out three general categories of physical CD piracy -- counterfeits, compilations and bootlegs. A counterfeit contains an entire album by a single artist along with album art. A compilation contains tracks from multiple artists. Bootleg CDs contain recordings of live performances. Live performances also enjoy protection under copyright law; artist-authorized bootlegs remain legal.
Digital CD piracy refers to the distribution of digital versions of copyrighted audio material. Both uploading and downloading of individual tracks, as well as entire albums, without compensation to the artists or company constitutes a form of CD piracy. Common methods of digital piracy include offering audio through peer-to-peer networks or digital storage lockers. Digital storage lockers offer individuals storage space accessible through the Internet. Even though it is a legitimate service, if the digital storage locker contains copyrighted material and the customer allows other users access to the files, it functions as illegal distribution.
The total impact of CD piracy defies accurate calculation, as the statistics about total piracy only represent the best guesses of experts. The RIAA, however, reports an industry-wide drop in revenue of 47 percent between 1999 and 2009. During the same time period, record companies cut approximately 15,000 employees, more than one-half of the workforce employed in 1999. Massive losses -- in terms of both finances and the workforce -- reduce the ability of the music industry to recruit and promote new talent and diminish the volume of audio products available to the public.
CD piracy falls under Title 17, U.S. Code, Sections 501 and 506, which makes it a federal crime. At the time of publication, if you are convicted on criminal charges, the penalties can include a five-year prison term and up to $250,000 in fines. Victims of CD piracy can also pursue a civil case to recover financial damages. The law sets a minimum fine of $750 per song in civil suits.