Case study: 3

Global Software Piracy- Crime That Pays

Course- International Business

Course code: (IBS 345)
Group No - 2

Prepared For:

Dewan Md. Nur A Yazdani

Assistant Professor
FBA, Eastern University

Prepared By:

Md. Majeduzzaman ID: 071200129

Date of Submission: March 26, 2011

1. What is the relationship among the various governments, institutions,
organizations, and companies in developing legal codes to fight software
piracy?

Technically, the standards of software piracy are unequivocal. Thus, parties have been
hopeful that collective political arrangements and legal actions by companies,
associations, governments, and institutions would lead to a decline in global software
piracy. However, coordinated anti-piracy initiatives such as high-profile legal
proceedings against companies using illegal software, increased government
cooperation in providing legal protection for intellectual property, and the
criminalization of software piracy have proven to be largely ineffective. Even efforts at
the transnational level to get nations to sign treaties and to require them to protect and
enforce intellectual property rights according to global, not local, standards have not
yielded the desired results. Unfortunately, the ease with which software can be
duplicated, sold, and distributed continues to baffle the industry.

 Industry associations BSA (Business software alliance), Software and Information

Industry (SIIA) and international Anti-Counterfeiting Coalition (IACC) made
efforts to spur government to toughen laws.
 They work to promote legal online world by negotiating with governments and
consumers in the international software and internet markets.
 Software makers, governments and associations are acting singly and jointly to
help police piracy.
 WIPO pledged to protect intellectual property worldwide by developing IPR
treaties.
 Hoping collective political arrangements and legal actions by companies,
associations, governments, and institutions would lead to a decline in global
software piracy.
2. Should software companies, industry associations, home governments, or
transnational institutions take the lead in dealing with the governments of
countries with high piracy rates? Why?

Because of the enormous economic, technological, and political implications of the

problem, software companies, industry associations, home governments, and
transnational institutions should all take lead roles in negotiating with the governments
of countries with high piracy rates. Each of those parties has related but slightly
different arguments to put forth, and it is very important to make the point that all of the
parties are highly vested in the issue—therefore, they should all step forward. Further,
different parties will have stronger or weaker relationships with the governments of high
piracy nations. Those parties who have the most to offer those governments will be in a
position to make their arguments most persuasively. Thus, efforts of all the
stakeholders in the issue should be thoughtfully coordinated.

 BSA reported that, of all the packaged software installed on PCs worldwide in
2005 more than 35% was acquired illegally –at a cost of $34 billion in losses to
software makers and distributors which is more than in 2003 where loss was $29
billion.
 Lowering PC software piracy can have significant economic benefits to economies
in the Asia Pacific.”
 “Now, more than ever, our global economy depends on a robust IT sector.
Policies that promote innovation today – including protection for intellectual
property such as software – will drive economic growth and prosperity in the
future,”
 BSA’s efforts to combat software theft have continued to make some progress.
3. Can the software industry expect to control software piracy without relying on
governments to take a more active role? Why would the software industry
dislike greater government regulation?

If the software industry could successfully develop technical and business measures to
thwart counterfeiters, government intervention would be unnecessary. Thus far, the
industry’s best efforts have been unsuccessful. Given the value of the products
involved, the “global” appeal of pirated software and the relative ease with which
counterfeiting occurs on a worldwide basis, the temptation for counterfeiters to continue
their activities is irresistible. In spite of the need for assistance and cooperation from all
stakeholders, the software industry could presumably object to greater government
regulation; while innovation moves at lightning speed, regulation tends to lag well
behind technological developments and market realities.

 In spite of the need for assistance and cooperation from all stakeholders, the
software industry object greater government regulation
 There is a rapid innovation in IT and government regulation may slow down
technological developments.
4. How do you think consumers in high theft countries justify software piracy?
Similarly, what ideas or conditions lead consumers in lower theft countries to
respect IPRs?

Consumers in high theft countries tend to share a collectivist mindset; they see property
as being common to all and existing for the benefit of all—often they do not understand
the basic concept of intellectual property rights. As with many other products, they
want to acquire them at the lowest possible cost. On the other hand, consumers in lower
theft countries tend to share an individualist mindset; the concept of intellectual
property rights is well understood and long established within their countries and
cultures. IPRs are seen to be a necessity for economic development and growth;
royalties and profits are seen as the just fruits of creativity and investment.

 Consumers in high theft countries tend see property as being common to all and
existing for the benefit of all—often they do not understand the basic concept of
intellectual property rights.
 they want to acquire the product at the lowest possible cost and they believe that
software makers should allow informational and technical wealth to be openly
shared with customers
 They also feel that piracy is the most effective way of chasing with western
monopolists who charge exorbitant prices.
 On the other hand, consumers in lower theft countries tend to share an
individualist mindset;
 The concept of intellectual property rights is well understood and long established
within their countries and cultures.