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Some of the effects of piracy is:1. Decrease in the Sales of legal copies.

2. Retail Price Effects of piracy: Street prices are affected by the extent of illegal commercial copying. The availability of inexpensive, high-quality illegal copies reduces the demand for legal copies to the extent that some users buy illegal copies instead of legal ones.

3. A report states that in June of 1996, the largest ever video piracy operation in the United States was dismantled in New York. The nationwide counterfeit business sold more than 100,000 pirated videos a week, grossing approximately $500,000. The investigation, dubbed "Operation Copy Cat", culminated when search warrants were executed by the New York City Police Department, assisted by the MPAA, on 17 locations, including four labs. Authority arrested 36 people and seized 817 VCRs, 77,641 pirated videos, $40,000 in case, 37,000 blank cassettes, more than 100,000 sleeves, lables and other sophisticated equipment used in the duplicating process. The economic impact on MPAA member companies is estimated to be more than $87 million a year.

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