PIRATE DVDs and CDs worth more than £300,000 were seized in a pre-Christmas raid at Paddy's Market in Glasgow.

Police swooped on the lane of ramshackle stalls and found hundreds of poor-quality copies of the latest blockbuster movies and chart CDs, as well as copying equipment.

Among the haul were substandard versions of current cinema releases including The Holiday, Happy Feet, Deja Vu and Borat.

CDs recovered included the new U2 compilation 18 Singles, and Love by the Beatles.

Police said today two men aged 21 and 24 and a woman, 29, were arrested in yesterday's raids. Officers launched the operation with agents from anti-piracy organisation the Federation Against Copyright Theft.

It was the third joint raid this year on Paddy's Market which continues to operate despite being unlicensed. FACT investigator John McGowan said: "Anyone buying Christmas presents from stalls like these will be disappointed. A lot are poor copies as they were made using a camcorder in a cinema.

"We have also been finding a lot of the DVDs are blank. And these aren't the kind of people you'd want to go and ask for a refund from.

"There is also a lot of other criminal activity - particularly drug dealing - taking place under the cover of counterfeiting at Paddy's Market, often from the same stalls.

"People thinking of buying should think twice because their money is probably heading to organised criminals."

Chief Inspector Alan Teasdale, of Strathclyde Police, said: "The raid at Paddy's Market was intelligence-led and is part of an ongoing joint operation.

"We are committed to working with other agencies to deliver maximum impact on the illegal market of counterfeits."

Police have also made a string of arrests on drug dealers manning market stalls.

And in October this year, a Glasgow man was sentenced to 22 months in jail for his part in a counterfeiting operation there.

Paddy's Market bosses were stripped of a licence last year after city council officials raised concerns about the operation.

However, it is still bustling and while some stallholders do have street traders' licences, the market remains a serious concern, with illegal goods on sale openly.

Joint raids in April and June netted £2million worth of counterfeit films, music and copying equipment.