Saturday, May 24, 2008

Microsoft looks to tackle software piracy

Kolkata, May 23 Microsoft has adopted a three-pronged approach to tackle the problem of software piracy, which accounted for losses of $48 billion globally in 2007.

Microsoft’s approach comprises education, engineering and enforcement. “Our endeavour is to work with customers, businesses and partners to drive awareness of piracy as an issue, and to educate them on how they can work on minimising this menace. Access to original software is one of the most critical elements to reduce piracy in India and we have taken the initiative to provide original software online and telephonically,” Mr Vipul Sant, Director of Microsoft India, stated in response to a questionnaire from Business Line.

According to him, India lost over $2 billion in 2007 to software piracy, a substantial increase from $367 million in 2003. In India alone, a 10 per cent reduction in software piracy would generate 44,000 jobs, $200 million in tax revenue and $3.1 billion in economic growth.

A KPMG Software License Compliance Survey 2007 states that companies lose a significant amount of revenue due to unlicensed use of their products. Thirty-four per cent of those polled in this regard said losses on this score amounted to 10 per cent of their revenue, while 21 per cent of the respondents felt the losses could well go up to 20 per cent of revenue. The survey also points out that managing software licence compliance is a low-risk, high-reward endeavour.

Mr Sant felt a large number of home PC users use counterfeit software simply because they are unable to distinguish between original and pirated software. He underscored the need to educate customers on the risks associated with the use of pirated software.

With regard to enforcement, Mr Sant said that though India has stringent laws to curb software piracy, there were gaps in implementing them appropriately. Strong intellectual property rights protection was critical to the growth of the software industry, he has stated.

He disagreed with the view that lowering the price of original software would help the industry address the issue appropriately।

source=http://www.thehindubusinessline.com/