• Simple piracy - the packaging of the pirate copy is different from the original. They are often compilations, such as the "greatest hits" of a specific artist, or a collection of a specific genre, such as dance tracks

• Counterfeits - the packaging of the pirate copy resembles the original as closely as possible. The record companies' trade marks are reproduced in order to mislead the consumer into believing that they are buying an original product.

• Bootlegs - these are the unauthorised recordings of live or broadcast performances.

Internet piracy is music compressed, posted and transmitted globally via the internet without permission of the rights holders. It can be via websites, email or through peer to peer file transfers.

Unauthorised use of sound recordings on the internet is a significant problem which has implications worldwide. Millions of unauthorised copies of sound recordings are available on music files that utilise a compression process known as MP3, which allows downloading and hence further unauthorised copying. In the last few years, sites that facilitate peer to peer (P2P) file-sharing have proliferated on the internet, resulting in hundreds of millions of dollars in lost revenues to artists and rights holders around the globe.

In Australia it is understood that:

• Around 2.8 million Australians download music illegally via file sharing networks every year. Of these, three quarters claim to download every month.
• 1 in 3 kids in the 14-17 year age group illegally download music regularly.
• On average, Australians download approximately 30 songs a month. This totals a staggering 1 billion songs being illegally traded by Australians per year.
• Close to 70% of Australians agree that illegal file sharing is stealing. Only half of all 14-24 year olds agree with this statement.
• Almost half of illegal file sharers themselves agree that illegal file sharing is stealing.
• Over half of illegal file sharers question “why should they have to pay to download music when they can get it for free via file sharing networks.”
• Among illegal file sharers, more than half admitted that they feel bad that artists lose income because of illegal file sharing activity.
• Almost three quarters of the general population feel bad that illegal file sharing is impacting on the lives and incomes artists.

• The majority of people that download music illegally rarely or never go on to purchase the music legitimately. 

P2P sites are depriving the recording artists, composers, authors and record companies of the right to choose the value of their creative property in a free and open market. Unauthorised downloading is also depriving governments of income from sales and excise taxes which would otherwise be paid for the sale of sound recordings on physical carriers such as CDs and tapes, which are displaced by down loading unauthorised copies from the internet.

"As an artist it's hard knowing that people are [illegally] downloading your songs when they could be buying your album" - Natalie Gauci 

MIPI participates in a global response to internet piracy that is orchestrated by the International Federation of the Phonographic Industry (IFPI) along with the Recording Industry Association of America (RIAA), to identify and bring down websites hosting illegal copies of sound recordings in Australia and its international affiliates around the world. Initiatives have included communication with unauthorised file-sharers through instant messages and litigation.

MIPI takes action to secure evidence of infringement of copyright in sound recordings offered on the identified sites in Australia. Notification in writing is sent to the website operators, service providers or both, informing them of the infringing copies of sound recordings on the music files of the sites they host and the legal implications if they do not voluntarily cease and desist offering the infringing copies on these sites. Kazaa Case