Challenges ahead for anti-piracy drive

DUBAI - THE headway made by the UAE in combating piracy in computer software, film and music could be more remarkable if the Emirates succeeds in overcoming a major hurdle — a lack of consumer awareness and concern about this illegal activity besides non-cooperation from the public.

By Issac John

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Published: Wed 17 Aug 2005, 10:35 AM

Last updated: Thu 2 Apr 2015, 4:15 PM

Industry analysts and software experts believe that the next logical step for the UAE — which now has a low piracy rate of 34 per cent as against the global average of 35 per cent — is to foster a generation of consumers committed to, and convinced of the long-term social, ethical and economic impact for intellectual property rights (IPR) protection.

Having overcome the first phase challenge of effective regulatory measures, the country's enforcement authorities now need to realise the importance of drumming up wider public support to their anti-piracy drive. This can be achieved only through sustained campaigns not only in business workplaces but also in schools and universities and other educational premises.

"It is time that the UAE, which has sent a positive signals to its Gulf neighbours by the way it handled piracy, should seek to develop a culture proactive to fool-proof intellectual property protection measures. To realise this goal, enforcement of tougher rules is not only the answer but also the creation of awareness, right from an early age, about the negative aspects of IPR violations."

"What is needed for our modern age techno- savvy society is a combination of stricter law enforcement and increased enlightenment. To combat IPR violations, effective legislation and its enforcement are vital, but no less significant is the support and cooperation both the authorities and the industries that are prone to copyrights infringement can win from the public," said a leading anti-piracy campaigner.

"Therefore, to create a healthy and vibrant software industry and a strong environment for innovation, what is imperative is not only an effective and speedy implementation of policies and laws but also a sustained awareness campaign to win consumer hearts," he said.

Most analysts maintain that in tandem with the strict implementation of regulatory measures, software industry should come up with improved copy protection technologies.

"With CD burning and on-line file-sharing now becoming more rampant and undetectable in the UAE than organised sales in pirated software and CDs, effective copy protection technology is the immediate answer to the menace. In the long-term, it is only a well-orchestrated educational drive that could succeed and sustain."

Stressing the need to introduce more copy-protected CD formats that limit the number of burns in curbing piracy, the analyst said CD burning is a growing problem that is really undermining the sale of software, films and music CDs in the UAE too. A random market survey by Khaleej Times underscored this growing trend.

Market watchers said with the UAE's impressive PC penetration and sophistication rate, this type of privacy is almost on par with the US where burned CDs accounted for 29 per cent of all recorded music obtained by fans in 2004, compared to 16 per cent attributed to downloads from on-line file-sharing networks.

In the UAE, while there is no organised or massive scale CD burning operations, an investigation by this paper found out that several production units catering to specific customer requirements — software, film or music CDs — are operational in certain residential areas, making them hard to be detected by anti-piracy squads.

Nevertheless, the once-rampant sale of pirated CDs at parking places and street corners is now a rare sight the following the vigil kept by enforcement authorities. Subsequently, the UAE has been removed from the Special 301 Watch List by the United States Trade Representative.

Analysts believe that it is imperative that government authorities and the software industries should marshal their efforts to educate the public that IPR protection is key to continued R&D to ensure innovations and growth in UAE's digital economy. Concerted efforts should also be taken to ensure all businesses understand the potential implications of lax security and the importance of creating a safe and legal working environment, they said.

Experts also maintain that business establishments should be made aware of the pitfalls of pirated software. "Piracy stifles innovation. The cost of combating software piracy, plus lost revenues, could be spent on research and development to benefit users. When you buy legal software, you are contributing to the businesses that can improve your software in the future, as well as to the worldwide economy. When your organisation complies, you have the assurance that you are protecting your company from the legal fees, financial penalties, and bad press that accompany piracy lawsuits."

The public should be made aware of the fact that pirated software may come cheap but can carry viruses or may not function at all.

"Unlicensed users do not receive quality documentation and are not entitled to receive technical support or product upgrades, patches, or updates. Organisational productivity also suffers when employees use pirated products. Pirated software often leads to version control problems that prevent employees from efficiently sharing files, while driving up IT support costs," the expert warned.

Piracy comes in many forms including licensed user duplication for unlicensed users and illegal Internet distribution. When someone copies software without buying the appropriate number of licenses, it is copyright infringement. Other forms of software piracy can occur when an individual copying a software for a friend or when a business under-reports the number of computers using a software.

Warning against the pitfalls of obtaining pirated versions through illegal Internet distribution, experts said there is no guarantee that such software is secure or will work properly when installed.

Estimates reveal that as much as 90 per cent of software sold over Internet auction sites is either bootlegged or gray market."

With an estimated 35 per cent piracy rate globally, the economic effects of this menace are significant. In 2004, piracy cost the global economy some $33 billion, up from the previous year's $29 billion. Losses in the Middle East area and Africa are around $1.3 billion.

According to global technology research leader IDC, the world spent more than $59 billion on commercial packaged PC software in 2004, up from $51 billion in 2003. But the total software installed was valued at $90, up from $80 billion.

While the UAE, like its AGCC neighbours is giving keen care to adhering to TRIPS (the WTO's agreement on Trade Related Aspects of Intellectual Property Rights), it need to take more efforts in educating the public on its implications.

As a front-runner in digital readiness in the Middle East, the UAE had a head start in embracing the Internet age, as well as mobile phone technology. In recent years, it made the protection of intellectual property a priority, and in the process, the country has blazed a trail as a regional role-model in safeguarding IPR.

"Just as the UAE government has done to educate the local business community of the e-commerce and encouraged understanding of the Internet and its capabilities through various programmes, authorities should mount a consistent campaign to educate the public on the ill-effects of piracy."

The country's copyright, trademark and patent laws, passed in 2002 were in harmony with international standards and exceed UAE's TRIPs obligations. The current copyright law, enacted in July 2002 grants protection to authors of creative works and expands the categories of protected works, to include computer programs, software, databases, and other digital works. Since then the UAE has come a long way with its piracy rates dropping to less than those of France, Greece, Ireland, Italy, Spain Portugal and Canada.

Most experts however, agree that suggestions or advice cannot completely thwart fraud. "A pirate will tell you anything it takes in order to sell you the illegal software. The best way to avoid pirated products is to purchase from authorized, reputable resellers. It is not uncommon for pirates to engage not only in the sale of illegal software but also in credit card fraud and identity theft. Counterfeit software may also have viruses or Trojan Horses."

They advise that buying legal software saves money in many ways. "In addition, in most cases, all registered licensees receive information about productivity-enhancing updates, upgrades, and special offers. Organisations that manage their software licenses effectively standardise employees on common platforms; get rid of obsolete, unused assets; and manage more efficiently, resulting in fewer IT support calls, lower administration costs, and higher user satisfaction."


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