The British Phonographic Industry (BPI), in its annual handbook, puts the cost of illegal CDs to the industry at more than £27m.

Piracy is a problem that adversely affects every sector of the music industry

BPI

The BPI's report says the figures represent only "a small proportion" of the revenue lost to the industry.

The increase of CD copiers, or burners, in home PCs has made it easier for people to make copies of music CDs.

'Pirate copy'

Music pirates link several burners together to make multiple copies.

The BPI said: "Piracy is a problem that adversely affects every sector of the music industry.

Downloading and CD copying have been blamed for reduced sales

"Retailers, distributors, artists, composers, publishers and record companies all lose out when customers are sold a pirate copy rather than a legitimate recording."

About 4.3 million counterfeit CDs - exact copies of legal compact discs - are thought to have been created in 2001.

Almost 152 million recordable CDs are expected to be used for home recording in the UK this year.

Industry executives blame CD copying on the worldwide slump in CD sales, although the UK has bucked the trend.

In 2001, UK sales increased by more than 5% while sales fell by the same percentage in the rest of the world.