Tag Archives: Copyright infringement of software

Piracy Helps Some Countries Grow

One can only imagine Bill Gates’ discomfort: Standing silently as the Romanian president told the world that pirated Microsoft software helped his country become what it is:

Pirated Microsoft Corp software helped Romania to build a vibrant technology industry, Romanian President Traian Basescu told the company’s co-founder Bill Gates on Thursday.

“Piracy,” Reuters quoted him as saying during a joint news conference to mark the opening of a Microsoft global technical center in the Romanian capital, “helped the young generation discover computers. It set off the development of the IT industry in Romania.” True, but as Reuters points out, 70 percent of software used in Romania is pirated and salesmen still visit office buildings in central Bucharest to sell pirated CDs and DVDs.

(And to be fair to the prez, he did actually call piracy “a bad thing”, according to another report by the AP, and said that “became in the end an investment in friendship toward Microsoft and Bill Gates, an investment in educating the young generation in Romania which created the Romanians’ friendship with the computer.”)

Actually I’ve long had the sneaking suspicion that (a) this is true. In places like Thailand, Indonesia, Malaysia, Philippines etc, the impressive and attractively priced range of pirated software available raises local savvy and interest in computing. When you can buy 100 software titles for the price of a Coke, what’s not to like? And this brings me to (b): the likes Microsoft, I suspect, actually don’t mind this situation too much, or at least may not hate it as much as they say.

I’m not the first to suggest this: Microsoft knows it can’t sell legit copies of Windows or Office to every user in these places. So it gives away what it can, or at least sells at a steep discount, to youngsters. Businesses it tries to wrestle to the ground. The rest it writes off. Sure, it would be great if lots of people bought legit copies, but better that younger people are getting hooked on it, rather than to the opposition (Linux, Ubuntu etc.) One day they’ll pay.

I’ve often wondered, for example, whether folk like Adobe and Microsoft actually aren’t at cross purposes. Sure, they’re both members of the Business Software Alliance, but whereas Microsoft know that it’s better to get a nation hooked on Windows even if it’s on pirate copies than to crack down and plunge it into the hands of the Open Source brigade, for Adobe it’s a different story. No one is really going to buy a copy of Photoshop ($400-$700), so the idea of getting them hooked doesn’t really count. Better to crack down as hard as possible, so those few who really do need it cough up. Better 10 legit copies sold now than 100 possible sales later.

Is that why Bill didn’t say anything?

Playing the Software Pirates at Their Own Game

In the last post I prattled on about how Microsoft et al didn’t get it when it comes to dealing with piracy. So what should they do?

I don’t know what the answer is, but I’d like to see a more creative approach. After all, these pirates have an extraordinary delivery mechanism that is much more efficient than anything else I’ve seen. Why not try an experiment whereby a user who buys counterfeit software, either knowingly or unknowingly, has six months’ grace period in which to ‘activate’ a legitimate version? This could be done online by a key download and a credit card. No big software downloads — prohibitive in a country where Internet speeds are glacial — and no shipping (time-consuming, and often not possible from most suppliers). Instead, a downloaded widget would scour the program the user wants to ‘activate’, check its version and integrity (I’m not talking values here, I’m talking software) and install whatever patches are necessary (hopefully done without need for a full upload.) After that, the software is legit.

Software vendors would argue that this encourages piracy. I would argue: if the user can’t buy a legitimate version of your software in the country they live in, either online or offline, should they just not use your software? Or

Secondly, I would argue that this approach is not far removed from the shareware try-before-you-buy approach whereby users get to play with software for free for 30 days or so before buying. Of course, if they want to, the user could just not pay and continue using the software. But I suspect that they weren’t the kind of customer who was going to pay anyway, so you can hardly count them as lost business.

Lastly, it may be possible to use this approach to disrupt the economics of the pirate software network by embracing the shareware model. Instead of restricting distribution of your product, you flood the market with shareware versions of your software, allowing users a grace period in which to try out the software. If users can find trial copie of OneNote or PhotoShop or whatever free in every computer shop they visit, why would they bother buying a dodgy pirate copy that may or may not work? Sure, the free version needs paying for at some point, but that’s the point. The piracy market exists in part because people don’t have access to legitimate software — certainly not the range of legitimate software — in these places.

OK, that’s not always true. There will always be pirates, and there will always be people who buy from pirates, even if the legitimate software is available next door. But I suspect a lot of people who buy pirate software buy it to experiment, to try out software. Indeed, someone living in a place like Indonesia is likely to be familiar with many more software programs than someone living in a non-pirate-infested country. It’s not that these people want this software desperately, nor that they would buy it all full price if they had to. They buy it because the price is so low, they may as well buy it and try it. Do they keep it installed? In most cases, probably not. But the calculation for Microsoft et al should be: How many of these people would buy this software if, after trying it, they liked it?

Finding the answer to that question will give you an idea of the real losses Microsoft and co are incurring in lost business. It should also make them realise that not doing a decent job of making their software readily available in a place like Indonesia — at a price that reflects the purchasing power of the local consumer — is creating this highly efficient, but highly parasitical economy in pirated software. If they can reach their customers through that economy, or bypass it with widely available shareware versions of their programs — then they may stand a chance.

The Tilted Software Piracy Debate

Software piracy is a tricky topic, that requires some skepticism on the part of the reporter, though the media rarely show signs of that in their coverage. Here’s another example from last week’s Microsoft press conference in Indonesia, one of the prime culprits when it comes to counterfeit software:

JAKARTA (AFP) – Software piracy is costing the Indonesian economy billions of dollars each year and is stymieing the creation of a local information technology industry, a Microsoft representative said.

There is some truth to these statements, but it’s not really what Microsoft is interested in. First off, is it really the Indonesian economy that’s suffering because of piracy? One could argue the Indonesian economy is largely built on pirated software, as a kind of subsidy (like gasoline, which was until recently heavily subsidized.)

Secondly, when did Microsoft ever support the creation of a “local information technology industry”? That’s not their job — and I don’t blame them — but why hide behind this kind of argument? (Interestingly, there’s a lively Linux development community in Indonesia, but I’m not sure that’s what Microsoft is talking about here).

Some 87 percent of computer software on the market in Indonesia in 2005 was pirated, Microsoft Indonesia’s Irwan Tirtariyadi said citing a study from the Business Software Alliance, an organisation representing manufacturers.

That’s probably about right. It’s huge. It’s hard to find a company that doesn’t use pirated software. You can buy pretty much every program ever written, and I don’t know of a single person who uses a computer and who doesn’t buy pirated software. This is not to condone it, but I also only know of about half a dozen shops in a city of 12 million people which actually sell legal software. And forget buying online: Most companies won’t ship to Indonesia.

Lax law enforcement and widespread corruption contributed to Indonesia clocking in with the fifth highest rate of software counterfeiting in the world, he said, after Vietnam, Ukraine, China and Zimbabwe. “I’ve heard when police come to a shop (selling pirated software) it is closed. Basically information is leaking and this is an indication of the quality of law enforcement in action,” Tirtariyadi said.

This is part of the problem, it’s true. The malls are full of shops openly selling pirated software, often on the ground floor near the entrance, with policemen patrolling by. When a raid is planned, everyone knows about it, the shops quietly shut, cover their wares in tarpaulins and keep their heads down for a day or two. (Sometimes it’s hard to tell whether the imminent raid is from the police or some Islamic group cracking down on the counterfeit DVD stores, which often sell software too.)

Tirtariyadi told a gathering of foreign reporters that if piracy dropped by just 10 percent, it would add 3.4 billion dollars to the economy, according to figures cited by the International Data Corporation.

Could someone please explain to me how that figure came about? To me it sounds suspiciously as if the argument is based on a false premise: That everyone who buys pirate software would pay full price for legitimate software if there was no alternative. Let me think about that: $3 for brand new software — often a collection of software — against $50–500 for the same thing, in a country where half the population earn less than $2 a day. I don’t think so.

Counterfeiting also inhibited an “inventive culture” and the development of a strong local information technology (IT) industry here, he said. “Some students like to create new software but three months later they find it’s pirated,” he said.

True, there is definitely an inhibiting factor. I wrote a year or so ago about a guy developing a machine translation program which wasn’t bad, but which required him to spend at least half his time developing anti-piracy features in the software. But I still think this is a disingenuous argument. Let’s face it: Microsoft (and Adobe, and all the other BSA big boys) are mainly interested in quashing piracy of their products and building up their market share; I don’t see much sign of Microsoft actually nurturing this “local IT industry”.

Indonesia, Southeast Asia’s largest economy, has less than 100 IT companies, whereas neighboring Singapore, with a far lower rate of piracy, has between 400 to 800 such companies, he added.

This is not a useful comparison. Singapore is a highly developed country and one of the world’s technology hub. Though, interestingly, it’s not really a locally creative industry, with the exception of a couple of big names.

All this makes me realise that Microsoft et al still don’t get it. Piracy is massive; they’re right. But you don’t deal with it by sponsoring misleading press conferences and well-telegraphed police raids.

The Future: Software on a Stick

Why isn’t more software sold on sticks these days?

F-Secure sent me their latest offeing, F-Secure Internet Security 2006, on a USB dongle. I don’t know if this how you buy it in stores but it makes a lot of sense. Why isn’t all software delivered like this, instead of on CD-Roms? Or is it and I’ve just missed it?

Advantages:

  • Coolness: It would be much more fun to have a drawer full of colorful dongles than a boring sleeve-book of CDs. Handing freebies out at expos would be easier too.
  • Piracy. I’m sure it would be crackable, but how about if the key were stored on the USB drive? You wouldn’t want to get into having to have the USB drive inserted in the computer for the program to run every time, but if it was possible for the key drive to leave its fingerprint on the computer this could perhaps be used as a way of making software harder to crack. I have no idea how this might be done.
  • Portability. With the rise of USB drive-based applications via the likes of U3, wouldn’t it be great if you could take your Adobe Photoshop or whatever with you? Say you have to work on another computer, you just insert your USB drive and run all your favourites from there. No installation, no more serial numbers, no infraction of EULAs. This is the U3 idea, but so far that idea doesn’t seem to encompass bigger programs, nor does it embrace the idea of using both USB drive and computer in tandem. Say I’m using Photoshop on my desktop, with all my settings and plugins there, why couldn’t I tell the software ‘OK, now I’m hitting the road with my USB drive. Load all my recent stuff onto the drive along with any relevant serial numbers until I tell you otherwise.’
  • Flexibility: You could run the software from the USB drive if you preferred, before actually installing it.

And just in case you haven’t seen it, check out this list of software that can be run off a stick.

More Things To Stuff In Your USB Port

Another visit to the  Hong Kong electronics expo thing. It really is big. I don’t think I’ve covered a third of it and I’m exhausted. Anyway, clearly I had no idea what I was talking about when I listed some gadgets you can plug into your USB port. There’s more.

The thing this year seems to be to mix n match a USB dongle. One USB drive, for example, also sports Wi-Fi. Another is also a Bluetooth dongle. Then there are the whacky things that just make the most of being a) powered by the computer and/or b) connected to the computer.

Shenzhen-based 6dragon Technology Co. Ltd (“Quality, Value and Service are not the only words we use, but these are also what we stand for”*), for example offers the following:

Massage

  • A USB vacuum (which, as the blurb puts it, ‘Can the dust of the valid clearance calculator keyboard’);
  • Several different USB-powered oxygen bars (‘Delicate style to be integrated with autos: Moreover, it is suitable to the office as well as home environment. And your taste lies here.’ Indeed);
  • The folk at 6Dragon (“If you are looking for someone to stand behind you for the long term, you will not go wrong with 6dragon!”*) also showed me a USB-radio, that looks like a dongle, but I can’t find it on their website. I see engadget were there some time ago but it was new to me.

Anyway, now you’re beginning to get an idea of what you could use your USB drive for. Go for it. Be the envy of your office-mates.

* Authentic quotes from website.

Poor Man’s WiFi

Further to my piece on WiFi for the masses, here’s another way to cut costs: Make your own WiFi dish out of a Chinese cooking vat scoop, poke a USB WiFi dongle through the mesh, and you can pick up signals more than 10 kilometres away. Total cost: about $40 for the USB dongle, NZ$8 for the dish.

The guy behind this, Kiwi Stan Swan, has previously developed the Sardine Can Antenna. I love the ideas and think he should be marketing them to those parts of the world where WiFi is turning into a bridge from having no communications at all to having Internet and VoIP.