Trading Standards officials in Middlesbrough say thousands of pirate CDs, DVDs, videos and computer games are being produced in the region.

They say the illegal trade is damaging legitimate businesses.

The warning comes after two raids in the town netted thousands of pirate discs and videos as well as copying equipment.

Officials from trading standards will be showing off the counterfeit goods seized during the raids in the town centre on Friday.

Lost revenue

The managing director of the Middlesbrough video game company Chips, Don Mcabe, told BBC Radio Cleveland that something had to be done.

"It does have an effect on the market in general," he said.

"You have to bear in mind that these people are intrinsically stealing a product and selling it on to other people, usually at a vastly reduced price.

"Those people, although they try and legitimise it by saying games are expensive, are colluding in theft."

On Thursday the British Phonographic Industry (BPI) revealed the circulation of pirated music in the UK has risen by more than 36% in 2001.

The UK's counterfeiting operations are believed to cost industry up to �9bn a year in lost revenue.