Bangkok--6 Oct--Hill & Knowlton Thailand
Microsoft Thailand is advising its customers and partners in Thailand to be extra cautious when purchasing its software after recent police raids found that some software vendors in the capital are offering counterfeit versions of Microsoft’s yet-to-be-launched new operating system, Windows 7.
As part of their continued fight against counterfeit and unlicensed software in the Kingdom, officers from the Economic and Cyber Crime Division (ECD) of the Royal Thai Police carried out raids at Pantip Plaza mall in Bangkok. Two IT shops, an unnamed shop located at Pantip Plaza Room 148 (1st Floor), and ‘Midi House’ located at Pantip Plaza Room 421 (4th Floor), were targeted after undercover officers had previously found them to be selling a pirated version of Windows 7.
Both offenders are to face criminal prosecution for committing acts of copyright and trade mark infringement — legally defined as the reproduction or copying of copyrighted computer software and articles bearing registered trade marks without authorization. If convicted, under Thailand’s laws, they face a jail sentence of 3 months to 2 years or a fine of 50-400 thousand baht.
“With the official global launch of Windows 7 not until October 22nd - and the consumer launch in Thailand to be held on October 31st - consumers should be left in no doubt that any copies of Windows 7 they see for sale before this time are guaranteed to be counterfeit,” said Rebecca Ho, Microsoft spokesperson for intellectual property enforcement in Thailand. “The pirated imitation of Windows 7 seized during the raids was being falsely advertised by some IT shop-owners as genuine and then illegally purchased by unsuspecting customers. However, customers can fight back if they know what to look for and follow a simple checklist before buying. The most common clues that the software is counterfeit are packaging quality, misspelling on the labels and manuals, CD quality, Hologram quality and Certificate of Authenticity (COA) quality.”
Intellectual Property Rights are critical to the long-term success and growth of the software industry. With Thailand’s high piracy rate, it is clear that much of Thailand’s software spending is being lost to sales of pirated software. Indeed the impact of Windows 7 will reach far beyond Microsoft, driving revenues and growth for the many legitimate IT companies worldwide that sell hardware, write software, provide IT services, or serve as IT distribution channels. This growth will do its bit to help economies around the world climb out of the current economic crisis.
According to a recent IDC report, every dollar Microsoft makes from the launch of Windows 7 in October this year to the end of 2010, will generate $18.52 in revenue for the global IT sector including in Thailand.
As such, a healthier attitude towards IPR in Thailand is essential in order to prevent legitimate local Thai businesses missing out on this growth. Furthermore, if Thailand’s piracy rate, which currently stands at 76%, does not improve there will be reduced incentives for local software developers and Thailand will miss out on crucial investment as investors instead look to other countries in the region where efforts to reduce piracy have been more successful.
Meanwhile, the case of a Thai man who was found to be illegally selling pirated software on his website has now come to court. During an earlier ECD raid, more than 100 infringing Microsoft software titles used as source discs for illegal replication and CD writing equipment was found at the offender’s home and he was charged with illegally reproducing, selling and distributing counterfeit software infringing copyright under Thailand’s Copyright Act, Section .31(1) and 70 paragraph 2. The penalty was a fine of 100,000 baht. However, as the offender pleaded guilty, the judge showed clemency and reduced the fine to 50,000 baht.
Similarly, the owner of ‘New Technology Hardware Ltd.’ was fined 150,000 baht after a police raid of his business found evidence of illegally reproducing and installing software onto computers for sale. As the defendant pleaded guilty, the Court reduced the fine to 75,000 baht.
These ongoing police raids signify an intensifying effort to effectively tackle and reduce piracy in Thailand, but there is still much to be done. Indeed raids are just one part of a much larger ongoing process that the Thai government, Department of Intellectual Property (DIP), ECD and the Royal Thai Police are employing to pro-actively deal with the issue in a positive way to ensure long-term benefits for Thai businesses and the economy.
“With these raids we want to show that the government is determined to make the country piracy-free. Piracy and the illegal use of unlicensed software has continued to be a big threat to the growth of the local Information and Communications sector and is causing considerable lost revenue to our economy,” said Pol. Col. Sarayuth Poontanya, Deputy Commander, ECD Police Division.
“As a copyright owner, Microsoft fully supports ECD’s zero-tolerance approach to piracy and we recognize the importance of greater Intellectual Property Rights (IPR) awareness in order to level the playing-field for legitimate channel partners in Thailand,” added Rebecca Ho. “We are concerned not only about the continued negative impact on economies and legitimate businesses, but the risk to consumers as well. Counterfeit software exposes users to an increased risk of viruses, worms and other damaging code including spyware and Trojan horses. Moreover, Windows 7 is the collaborative result of thousands of hours of hard work from dedicated developers all around the world, so anticipation is very high and customers are rightfully expecting to get a genuine, high-quality experience. In contrast, counterfeit copies not only pose security risks but often fail to even operate properly.”
To address this Microsoft is continuing to work closely with all its partners to educate Thai consumers on how to protect themselves and partners have already been advised on how to support customers who suspect that they may have been sold a counterfeit version of Windows 7 - or any other Microsoft software.
For further information, please contact:
Suphada Chaiwong
Hill & Knowlton Thailand
Tel: 0-2627 3501 ext 209
Fax. 0-2627 3510
Email: [email protected]