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Software piracy is the biggest threat

By Hong liang (China Daily)
Updated: 2008-10-25 08:17

Microsoft's latest move to fight software piracy on the mainland has stirred a storm of controversy in the local media and on the Internet. Although nobody has been able to produce a convincing argument against Microsoft, many commentators furiously attacked the company for what they considered as the "persecution" of tens of millions of counterfeit software users, who apparently included many commercial enterprises.

Newspaper stories and commentaries charged that by threatening to black out the screens of computers running on pirated Microsoft's operating system or productivity software, the US company was "striking terror" into the minds of mainland computer users, many of whom weren't even aware that they were using counterfeit products. Others called for government intervention to thwart what they saw as a "conspiracy of hegemony" by the US software giant.

The whole idea of IPR, or intellectual property rights, was conveniently ignored amid the rabid attacks on Microsoft for taking the protection of its royalties into its own hand. Although some commentators questioned the legality of Microsoft's action, nobody is known to have contested it in a court of law.

In the hullabaloo, a case was made against Microsoft's alleged monopoly which, critics said, has greatly hampered the development of China's software industry. Not only is this a dubious claim, it doesn't seem to have any relevance in the company's action against the widespread violation of intellectual property rights.

To be sure, screen blackouts or any other efforts by a software developer, even one the size of Microsoft, to discourage the use of counterfeit products is not going to root out software piracy on the mainland. Indeed, it is reported that hackers have already published on the Internet special codes that can unlock the screen blackout.

But Microsoft has made a strong statement that has obviously raised public awareness of the software piracy controversy. Experience in other markets, notably Hong Kong, shows that public education is one of the most effective weapons against counterfeiting.

The Hong Kong authorities have mounted numerous publicity campaigns against the use of counterfeit software and other products. By now, most consumers in Hong Kong know that software pirating is illegal and buying such counterfeit products can be construed as abetting a crime.

What's more, strenuous efforts by law enforcement agencies against the sale of counterfeit software have driven the trade underground. There are places where pirated software is sold. But they are hard to find, and the illegal vendors are forced to take elaborate precautions that are not only inconvenient but also embarrassing to their customers. Stiff penalties have discouraged most commercial enterprises in Hong Kong from using pirated software.

Software piracy hurts not only the major US or European developers, but, more importantly, the many fledgling domestic companies which create specific software for the domestic market. Rampant piracy in a few markets would only make a small dent in the profits of the multinational IT companies. But counterfeiters can put scores of domestic suppliers out of business by flooding the market with pirated copies of software these companies developed.

Indeed, the many small software developers on the mainland are potentially the real victims of piracy. They should take a firm stand in protecting their royalty rights because they may have more to lose than Microsoft in failing the fight against software piracy.

E-mail: jamesleung@chinadaily.com.cn

(China Daily 10/25/2008 page4)