WASHINGTON -- US President George W. Bush signed a bill on Monday which toughens penalties for copyright infringement, music and movie piracy and creates a high-level position of intellectual property czar.

The bill, which has been welcomed by trade groups such as the Recording Industry Association of America (RIAA), was one of a number of pieces of legislation signed by the president on Monday, the White House said.

The bill tightens civil and criminal intellectual property laws, imposes stricter penalties on violators and establishes the position of a White House-based "Intellectual Property Enforcement Coordinator."

It provides the Justice Department and Federal Bureau of Investigation with more resources to fight intellectual property crimes, which are estimated to cost US businesses as much as $250 billion a year.

RIAA chairman Mitch Bainwol welcomed the new law after it passed the House of Representatives saying it was "music to the ears of all those who care about strengthening American creativity and jobs."