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Pirated goods cripple Brazil's economy, but solutions seen as weak.(Chicago Tribune)

Knight Ridder/Tribune News Service

| November 04, 2002 | Jones, Patrice M. | COPYRIGHT 2002 McClatchy-Tribune Information Services. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

RIO DE JANEIRO _ In Rio's bustling commercial district, the latest computer software, the hottest samba music CDs and even DVDs of the biggest blockbuster films can all be had for about $2.50 each from street vendors.

In this open illegal trade, a vendor named Marcos guarantees he has the best deals at prices that can only be described as too good to be true. He openly operates on a main downtown street even as several military police officers stand only a half-block away.

"If you have any problems, just call," said the 25-year-old, handing out a business card.

Industry officials say vendors like Marcos are a microcosm of a growing economic cancer in Brazil, where the underground economy is progressively eating away at the official one, costing the government and businesses billions each year in lost taxes, profits and jobs.

The fake products and pirated copies of everything from designer-label sneakers to computer games to auto parts have long been a part of life in Brazil, but the growing trade will represent new challenges for President-elect Luiz Inacio Lula da Silva.

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