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BR Research

Say no to piracy

Published September 4, 2009 Updated September 4, 2009 12:00am

Pakistan has become a global hub of audio and video piracy over the past 25 years. The countrys national exchequer suffered a loss of $156 million in 2008 due to large-scale violation of intellectual property rights, according to a watch list prepared by United States Trade Representative. But its ironical, when anyone talks about piracy we only consider the software industry and literary work, when, in reality, we are dealing with a variety of counterfeit products, including medicines, food substitutes and cosmetics.
It is a common myth that piracy is benefiting developing countries by providing goods at low cost, but in fact, it is only benefiting retailers and publishers at the expense of huge losses to the government, industry and specially the buyers as over the period of time quality products disappear from the market.
If intellectual property rights are properly enacted, then Pakistan can enjoy several key benefits. First, the government will start receiving tax revenue and duties. Second, it will create job opportunities in local markets, as both local and foreign investors will invest in small and medium enterprises. Third, it can potentially boost research work, especially in IT and manufactured goods, resulting in higher exports, as well as a greater market share in the business process outsourcing industry. Fourth, quality consumer goods, especially medicine, would be available at reasonable prices. Fifth, it will encourage art work as artists would be paid for their effort.
The government should take necessary steps to stamp out piracy without depriving the consumer of necessary goods, as a majority of those who purchase pirated products turn to piracy out of necessity, being the only available and affordable option.
To reduce piracy, the government needs to take quick, drastic steps; a public awareness programme on the importance and significance of copyright should be carried out and to educate that buying pirated products is akin to stealing somebodys effort and time. The next step would be to train the FIA officers, customs staff and police to combat cases of copyright violation and to take strict action against culprits. Foreign suppliers must be convinced to make available the supply of foreign books, medicines and software at discounted prices for developing countries in exchange for a low royalty fee. Finally, the government must foster universities and academic institutes to publish their articles, research works and books.
Recently, the efforts of Pakistan Computer Association to promote use of "low cost open source operating systems" instead of pirated Microsoft systems seems rational, and would rightly restrict local retailers and publishers from minting money by selling pirated software. On the flip side, we can encourage Microsoft to release some special version of software for developed countries at nominal prices.



==========================================
REGIONAL SOFTWARE PIRACY RATE
==========================================
COUNTRY RANKING PIRACY
RATE (%)
==========================================
Bangladesh 2 92
Pakistan 12 84
India 41 89
Turkey 51 65
Malaysia 58 59
==========================================

Source: Fifth Annual BSA and IDC Global Software Piracy Study
All information and data used are from reliable source(s) and subjected to extensive research after diligent and reasonable efforts to determine the soundness of the source(s). This analysis is not for the benefit of or discredit to any person, scrip or tradable instrument. The content(s) of this analysis shall not be construed as an advice or recommendation to trade. No relationship of client will be created between Business Recorder and user of this information. Professional advice must be taken by the reader before making investment/trading decisions. BR disclaims any liability for investment(s) made or liability accrued on basis of this analysis. The content(s) including all opinion(s), statement(s) and information are subject to change without prior notice and/or intimation.

Copyright Business Recorder, 2009

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