In their latest attempt to escape detection, music and video compact disc pirates in Malaysia are turning their innocuous-looking homes into clandestine production factories to boost their market share.

It was recently reported in the local press that as technological developments made it possible to copy film and music discs using equipment costing as little as RM3,000 (S$1,380), illegal manufacturers were shutting down factories and shifting their operations to private residences, making their activities harder to track down.

Pirated video, music and software discs are openly sold in Malaysia on a rampant scale everywhere from small roadside kiosks to large shopping centres. Authorities say that up to 60 per cent of all CDs sold in the country are illegal copies.

To stem the tide, the Malaysia authorities have clamped down harder on disc piracy of late following complaints from the US-based Business Software Alliance that counterfeit software has caused an estimated RM18 billion in potential lost sales of genuine products in South-east Asia alone. Since December last year, enforcement officers have reportedly arrested 50 people and seized copying equipment worth about RM1 million. The consequences of being nabbed are high, as traders face fines of up to RM115,000 and two years in jail under Malaysia's software anti-piracy laws.

The Malaysian Recording Industry Association has claimed that its members lose a staggering RM300 million in sales each year to piracy. The total market is estimated to be worth about RM500 million. The illegal trader's share of this pie may yet get even bigger given their new modus operandi.

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