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Music Piracy Is Rampant Even as Labels License Online Sites

Hundreds of online music services licensed by record labels in recent years have done little to stem rampant illegal downloading, which is pushing down the value of recorded music.

Digital piracy is still rising along with websites and forums linking to content accessible by piracy services, the International Federation of the Phonographic Industry said in its annual report today. Global revenue from music via the Internet and mobile phones rose 6 percent to $4.6 billion, accounting for 29 percent of record companies’ sales. The rate of growth was less than 2009’s 12 percent increase.