Police claim they have smashed a $12 million-a-year pirate DVD ring in three raids on houses in Melbournes west today. The raids busted Australias largest pirate DVD syndicate, with 170 DVD burners and more than 400,000 pirated discs allegedly seized.

Victorian and federal police and investigators from the Australian Federation Against Copyright Theft (AFACT), first searched a home in Sunshine West following reports from the public of suspicious activity, AFACT operations director Neil Gane said. More than 250,000 discs and 100 burners were recovered, a 49-year-old man is assisting police with inquiries.

Two houses at St Albans were later searched, where 70 more burners and more than 150,000 discs were allegedly found. The same addresses were raided in November last year, Mr Gane said. The two alleged burner labs, running 170 burners 10 hours per day, seven days per week, could produce more than four million discs a year with a street value of more than $12 million, he said.

The haul allegedly included copies of latest release films including American Gangster, I am Legend, and Alvin and the Chipmunks, which are showing in cinemas and have not yet been released on legal DVDs.