Word: cds
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...impossible to determine how many millions of these bargain-basement CDs wind up in China. Most music-label executives won't talk about it on the record, and no one is monitoring the traffic. (BMG in New York would not comment for this article; EMI in London and Universal in Los Angeles declined repeated interview requests.) But it's clear this amorphous gray market is entrenched. The discontinued or surplus CDs, generally known as "cutouts" in the West, are in China called dakou (saw gash) because some albums have a telltale notch in the jewel box and sometimes...
...Piracy: Fake CDs in China...
...gray-market albums started showing up in major mainland cities, according to Giouw. The IFPI, which lobbies globally against piracy and copyright violations, traced the CDs to a single recycling company in northeast China and notified record companies. But, Giouw says, "at the time, none of the majors were concerned that it would have an impact on their business." Piracy was a much bigger issue. "This was the lesser evil," he explains. "Do you want these cutouts, or do you want pirates...
...Ultimately, dakou may become obsolete. The industry is slowly moving toward selling music over the Internet, which neutralizes the risk of making too many CDs by eliminating manufacturing altogether. As one record-company exec says, "In the very, very near future, we'll be digitizing our catalog, and we won't be deleting titles anymore." But as long as discs survive, it's business as usual for China's dakou dealers...
...Piracy: Fake CDs in China...