EDITORIAL Software trouble

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EDITORIAL Software trouble

  • Published: 14/11/2009 at 12:00 AM
  • Newspaper section: News

Police action to enforce intellectual property laws has been stepped up this month and several companies have been penalised for use of pirated software. As a result some businesses have become marginally less profitable after the imposition of heavy fines, an expense that could easily have been avoided.

Only they know why they failed to comply with the advance warnings to install genuine, licensed software ahead of the raids. Desperate cost-cutting measures because of the economic slowdown do not appear to have been the cause and industry observers blame greed and negligence. In one raid, pirated design software was confiscated from the engineering division of a multinational firm with local assets of more than 200 million baht. Legitimate software would have cost less than 30,000 baht. Other interior design and architecture firms have been targeted along with the construction and manufacturing sectors.

Software piracy - or any piracy, for that matter - makes little economic sense nowadays and gives others the impression we are a light-fingered nation of copycats, lacking in conscience and creativity. In one case earlier this year, the Central Intellectual Property and International Trade Court awarded a maker of design and engineering software 1.8 million baht in damages plus interest. The decision was based on evidence that the defendant had infringed the software developer's copyright. The 100% Thai-owned company at fault had a registered capital of 150 million baht and annual revenue of 250 million baht. This followed another case in January which resulted in an award by the court of 3.5 million baht against an Ayutthaya-based manufacturer. Other cases are frequently settled out of court.

There is a misconception that piracy is essentially a victimless crime. But theft always has a victim. An actor, singer or musician whose work is stolen is a victim, and the Thai or foreign software engineer whose work is copied without recompense eventually loses his livelihood or spends years tied up in court. What is rightfully theirs goes into the pockets of criminal gangs.

At the bottom of this slippery slope is the most sinister and dangerous form of piracy. This is the counterfeiting of ordinary medicines which has become a growth industry with truly horrific results. An extreme example was the pharmacist in the United States who was convicted of adulterating and counterfeiting cancer treatment drugs so he could enrich himself by increasing the suffering of cancer victims. He was caught, but arrest rates in our part of the world are disturbingly low.

The Food and Drug Administration periodically issues warnings against buying medicines from internet-based pharmacies and warns that such drugs are, in all likelihood, fake and little more than powdered glucose. That is true, but the agency overlooks one very important aspect in all this. It neglects to mention that potential customers do not need to hunt down obscure internet sites in other countries to find adulterated drugs. They are already being peddled through a few dishonest or duped pharmacies and clinics throughout the region.

The World Health Organisation believes the problem is such a big one that at least 25% of prescription medicines sold in the developing world are fake, with the counterfeiting of drugs to combat malaria the most dangerous because adulteration of active ingredients has created resistance to new first-line treatments. This is an issue that justifies as much attention as the authorities are giving to pirated software. Perhaps more, as lives are being put at risk.

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  • Robert

    Discussion 6 : 15/11/2009 at 07:40 AM6

    Why would a Thai Court fine a Thai Company for infringing the greedy copyright of an American or European software company? The police who are pushing these raids are likely getting paid by the software companies and that makes them no better than the pirates.

  • Just the facts

    Discussion 5 : 14/11/2009 at 11:45 AM5

    there is no reason for software piracy, especially since an excellent alternative to Windows already exists - Linux. Linux based software includes operating systems, server systems, and a host of other programs that can do exactly what Windows does. For the cost of three blank CDs, a company can download free software for their personal computers AND their servers.

    Yes, some retraining will be needed to get people used to a different system, but compared to the price of piracy fines, it should be well worth it.

  • Dr. Sponder

    Discussion 4 : 14/11/2009 at 11:40 AM4

    Perhaps I have a bad memory, but I cannot recall ever having seen a legitimate copy of an OS or application software. I'm sure they exist, but most of the legitimate copies that are sold here turn out to be very elaborate copies.

    I also cannot imagine any of my friends who would be willing to pay more for their software than they did for their computer. Hardware has got cheaper, but the software has not. Something is wrong here...

  • Dale Bailey

    Discussion 3 : 14/11/2009 at 09:40 AM3

    A few years back I bought an operating software from a company also known as the Death Star, because I thought it the right thing to do. The disc was defective in that it had no sound driver and could not be made to work by any download. To replace said defective disc I would have to pay US $30 or about 15% of the cost of the software. After that experience I feel no sympathy for mega software companies. They deserve what they get.

  • massein

    Discussion 2 : 14/11/2009 at 09:05 AM2

    First let me make clear, that I have 4 computers
    serving different members of my familly, All of these have lic software. I find it more convenit
    to use lic software, when problems arrive. In saying that,I blame the soft ware developers for this problem. It is just to expensive for ppl not living in the west. A average person in asia simple canot afford it. I have no sympathy for business, they should paid because they make big profits, but the average home user does not use it for anything but personel use.No profit involved

  • eddthened

    Discussion 1 : 14/11/2009 at 07:58 AM1

    I think the first thing thing the author needs to do is load up some (licensed) spreadsheet software and run the numbers again. A full engineering design department, up and running for 1,000 US? Where? I'll have some of that.

    I am not condoning software or any other form of piracy, but certain software manufacturers really need to wake up and recognize that:

    1 - Their license fees for Thailand are completely out of whack with the budgets of many users here (not everyone has 200 million in local assets.)

    2 - The license fees on many 'industry standard' software suites are well in excess of the actual utility value of the software for most normal business use ("It looks like you're typing a letter - that will be $550, please.")

    3 - Trying to buy legitimate products is often a tortuous process, especially if you have a Thailand shipping or IP address, or want something outside of the mainstream product ranges. Plus, even the manufacturers don't understand their own licensing, bundling and regional price list policies (if you don't believe me, then please believe a prominent ex-Country Manager of a very well known desktop 'solutions' company), making a legitimate order nigh on impossible.

    4 - Even if you can get the products you need, they often ship with bloated, broken, half-tested feature sets and/or basic driver incompatibilities, etc. (this is a world wide phenomenon: especially prevalent if two of the 'majors' are rushing to get their new OS to market in time for 'the Holidays').

    All of the above, plus the recent police [or should I say the "grass up a competitor"?] campaign, are the best boost Open Source solutions could have ever wished for.

    Try 'em. You'll like 'em!

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