CD, DVD Counterfeiting Draws Prison Sentences

“These sentences send an important message that criminal counterfeiting will not be tolerated,” said Assistant Attorney General Lanny A. Breuer.  “The sale of counterfeit goods and the theft of intellectual property harm businesses, consumers and artists alike.  We will continue to investigate and prosecute individuals who seek to profit illegally by stealing the works of others, including those who knowingly support the criminal activity.”

Ahn was ordered to pay $25,000 in restitution to the Recording Industry Association of America and $15,000 in restitution to the Motion Picture Association of America.  

Ahn pleaded guilty on Jan. 14, 2010, to one count of conspiracy to commit criminal copyright infringement, to traffic in counterfeit goods and to traffic in counterfeit labels.  Ndhlovu was convicted by a federal jury on July 28, 2011, of one count of trafficking in counterfeit labels and two counts of criminal copyright infringement.

Hundreds of thousands

“These defendants mass-produced hundreds of thousands of counterfeit music CDs and DVD movies in a pirating operation that appeared to be the largest of its kind in the southeastern United States,” said U.S. Attorney Sally Quillian Yates for the Northern District of Georgia.  “Their victims included consumers, who were not getting genuine products, as well as the thousands of Americans who earn their livelihoods from the legitimate creation of their art.”  

According to evidence at trial, Ndhlovu reproduced thousands of infringing copies of copyrighted CDs and DVDs, purchased corresponding counterfeit labels and packaging, and assembled the final product that he ultimately sold. 

Evidence at trial also showed that Ndhlovu reproduced thousands of CDs and DVDs per week for distribution.  Ahn assisted in supplying Ndhlovu with blank DVDs and CDs knowing that Ndhlovu and others intended to reproduce infringing copies of copyrighted music and movies onto such digital media. 
            
The sentenced defendants were among 13 charged by a federal grand jury on May 19, 2009, in an indictment alleging various copyright, trademark and counterfeit goods offenses. 

Five other defendants were sentenced earlier this year.  One was placed on probation for a year; the other four were sentenced to prison terms ranging from two to five years.  The court found that Ahn conspired with co-defendants and others to reproduce and distribute hundreds of thousands of copyright infringing music CDs and movie DVDs which, if legitimate, would have been worth more than $3.7 million.