COMMENT: India's software piracy causes loss of Rs 900 crore annually

[Frederick Noronha <fred@xxxxxxxxxxxxxxx>]

Below is a very interesting news-item. The arguments (and the stand
taken) have implications for all of us who would like to see
free-shareable Linux grow. How would the others on the list respond to
arguments explicitly stated or implied, such as: 
1. Piracy "losses" in India exceed Rs 900 crore.
2. Continuing piracy means higher prices for the consumer
3. Piracy means less publisher revenue to invest in new products
4. "Thousands" of jobs are lost since proprietary s/w is not purchased

INDIA'S SOFTWARE PIRACY CAUSES LOSS OF RS 900 CRORE ANNUALLY

UNITED NEWS OF INDIA, New Delhi, Dec 3 (Indian Express, Dec 4)

TWO IN THREE software programs in India are stolen and the software
piracy is causing an annual loss of more than Rs 900 crore in the
country.

These software programs are stolen either through hard-disk loading or
counterfeiting, according to Dewang Mehta, president, National
Association of Software and Service Companies (Nasscom).

The results of the fifth annual benchmark survey on global software
piracy showed that piracy losses in India exceeded Rs 900 crore at a
piracy rate of 59 per cent. 

The survey, conducted by Independent Research for International
Planning and Research Corporation, was commissioned by the Business
Software Alliance (BSA) and the Software and Information Industry
Association (SIIA).

The continuing piracy problem meant higher prices for consumers, less
publisher revenue to invest in new products and a potential barrier to
success for software start-ups in India.

"If software piracy continues unabated, the local Indian industry will
be robbed of thousands of jobs, billions in wages, tax revenues and
critical investments in new technologies," Mehta added.

Mehta said many chief executive officers, information technology
managers and general managers are aware of the civil and criminal
penalties for use of unlicensed software. Yet they continue to fail to
act.

"Unfortunately, there are also businesses who deliberately install and
use software without appropriate licences. They risk becoming target of
legal action," he said.

Software piracy refers to the illegal installation, distribution, sale
and use of infringing software. If found liable under the Copyright
Act, offenders risk criminal penalties of upto three years in prison
and fines upto Rs 200,000 for the offence of copyright infringement.

Nasscom and BSA would intensify efforts to stop this menace. "We will
continue to assist enforcement authorities to initiate action against
individuals and businesses manufacturing, distributing, selling or
using illegal products as we have done since 1994," Mehta said.

They would also continue to educate the public and the business sector
of the effects and dangers of piracy through seminars and press
releases. Among other things, Nasscom and BSA have launched a reward
programme which would give Rs 50,000 to anyone for providing
information leading to successful legal action against companies using
unlicensed software, Mehta said.

Anyone could give this information on a hotline, 1600-334455

Their campaign would educate the business sector, the community, the
distribution channel and dealers about the importance of portecting
intellectual property rights, both for the local economy and for the
long-term prosperity of India's dynamic software industry.(ENDS)