Microsoft Law Enforcement Event “sustainable solutions through partnership and innovation”

1. Microsoft Law Enforcement Event“sustainable solutions through partnership and innovation” Len Hynds Head of Anti-Piracy Enforcement 4th. April 2008

3. Scale and Scope • International dimension • Over 1 billion pirate music albums sold worldwide • Illegal downloads 20:1 • 37% of all CD album sales are pirate product • Valued at 4.5 billion US dollars Research data and statistical information

4. From A&R to DistributionPromotional Process Album/Single Release Date Album/Single Recorded Distribution to Retail

5. Music Piracy on-line

6. Music Piracy on-line

7. Music Piracy on-line

8. Music Piracy on-line

9. Music Piracy on-line

10. Maximum Impact – Vision for delivery

11. Maximum Impact – Vision for delivery • Know the competition – it is the key to beating it • Current configuration generates answers to: • Who? • What? • Where? Holistic Intelligence Assessment • Lasting solutions emerge when you start to think more about: • How? • Why?

12. Maximum Impact – Vision for delivery • Underlying question – “How do pirate entrepreneurs think about ensuring the viability of their business?” Holistic Intelligence Assessment • The answer can be modelled looking at four component process loops: • Demand driven loop • Supply driven loop • Margin driven loop • Trust driven loop

13. Demand driven loop

14. Supply driven loop

15. Margin driven loop

16. Trust driven loop

17. Maximum Impact – Vision for delivery • Armed with holistic understanding we can identify and build holistic solutions • Everything we do must be designed to achieve MAXIMUM IMPACT against one or more of the piracy process loops • Four Major Programmes to address: • Demand • Supply • Margin • Trust Holistic Intelligence Assessment Bespoke Strategy

18. Maximum Impact – Guiding principles

19. Maximum Impact – Programmes of Activity • Contextualise the • communication strategy • Engineer worldwide days • of action • Reverse the Risk-Reward • equation • Information operations to • reduce trust levels for pirate • producers • Support and develop • members counter-corruption • initiatives • Maximise marketing benefit • of every enforcement success • Multi-faceted targeting • of most damaging pirate • producers • Lifetime attention for prolific • pirate organisations • Bulk data sharing to prevent • & deter supply – introduce • suspicious trans. project Demand Intel. Focus Trust Supply Margin • Coordinated asset • recovery programme • Revenue generation • initiatives • Production/Distribution • cost focused projects

20. Maximum Impact – Vision for delivery • Breathing innovation into the enforcement effort • Build culture for creativity, where innovation is valued as a business benefit • Factor innovation days into the teams diary – no-one has the monopoly on good ideas • Structure “think tank” approach sourcing alternative views from different disciplines • Nurture mindset and develop systems to address piracy “enablers” as well as the pirates • Take away the motivation for the pirates Holistic Intelligence Assessment Bespoke Strategy Business plan for a new era

21. Maximum Impact – Vision for delivery • Relationships are pivotal to ultimate success • IFPI with RIAA and NG’s • IFPI with MPA and other industry bodies • IFPI with complimentary industries (e.g.: technology) • IFPI with International/National Law Enforcement • IFPI with wider public sector (data sharing and agenda setting) • IFPI with Governments • IFPI with academia • Provide leadership in partnerships identifying maximum synergy Holistic Intelligence Assessment Bespoke Strategy Business plan for a new era

22. Setting the Enforcement Priorities

23. Maximum Impact – In conclusion • A measured response in tune with the problems of today – and tomorrow • It must deliver sustainable success through innovation • Not just an enforcement strategy – it’s a hostile take over of music pirates

25. Thank youAny Questions ? Len Hynds Head of Anti-Piracy Enforcement 4th. April 2008