Hollywood's ongoing war on piracy took another step forward in the wake of a ruling that will hold property owners in Los Angeles liable for the manufacture and sale of counterfeit music and videos on their premises.

The Los Angeles County Board Of Supervisors approved the new ordinance on May 5, expanding the legal definition of nuisance properties.

'This ordinance is an important milestone in our efforts to curb piracy in Los Angeles,' MPPA chairman Dan Glickman said, adding that the Board Of Supervisors 'have officially recognised that piracy isn't just an industry problem, but one that has a significant impact on the local economy as well.'

Data from the Los Angeles Economic Development Corporation reveals that in 2005 music and film companies based in Los Angeles County lost an estimated $5.2bn as a result of the sale of counterfeit goods.