Unlicenced software use! Pay Rs.10 Lakh: HC to firm

New Delhi: The Delhi High Court continues to remain tough on the issues of software piracy in the country. In their efforts to create an effective deterrence in companies and organizations using pirated or unlicensed software, the court fined a company Rs.10 lakh as compensatory and punitive damages to the software copyright holders for using pirated software for commercial purposes without adequate genuine licenses. The plaintiffs in the case were Adobe and Microsoft.

While several judgments for damages have been passed against illegal hard-disk loading by the Delhi High Court, this is the first ever judgment on damages against a corporate end-user company. While granting the order, the court cited the famous judgment of Time Incorporated v/s Lokesh Srivastava, 2005 (30) PTC 3 (Del), which expressed a need for the courts to get tough on the issues of piracy and counterfeiting.

In that case, the court said, "This court has no hesitation in saying that the time has come when the courts dealing with actions for infringement of trademark, copyrights and patents, should not only grant compensatory damages but award punitive damages also with a view to discourage and dishearten law breakers who indulge in violations with impunity out of lust for money so that they realize that in case they are caught, they would be liable not only to reimburse the aggrieved party but would be liable to pay punitive damages also, which may spell financial disaster for them."

According to BSA estimates, from the approximately 45-50 end-user civil actions initiated jointly by its member companies from January 2008 onwards against companies and organizations using pirated software in India, the approximate value of pirated software found in these companies could be valued at Rs.85,78,30,000. This figure of loss would be much higher, if it had also taken into account cases, where member companies had independently pursued civil action against end-user companies.

As per 2008 IDC-BSA Global Software Piracy Study, the India software piracy rate stood at high 68 percent and the revenue losses attributed to software piracy in India in that year was estimated at $2.7 billion.

The piracy rate in India has decreased at a slow place - by six percentage points over a period of five years. Around 68 percent of packaged software on PCs were pirated in 2008 in India, amounting to huge revenue and job losses to the domestic software industry.

According to an economic impact study of software piracy conducted and published by IDC in 2008, in India, reducing software piracy by 10 percentage points over a four-year period could generate an additional 43,000 new jobs, $3.1 billion in economic growth, and $200 million in Government tax revenues. There was further potential good news for local vendors, where the study also predicted an additional $2.7 billion in revenues to local vendors alone.
Source: Silicon India
 
no wonder. adobe and microsoft should reduce their prices first. their products are currently out of reach of the SMB segment which pirates the most imo.
 
^^ Prices are only a small part of the problem, not the root. Given the opportunity and no legal consequences even larger businesses wouldn't think twice about pirating, leave alone SMB's.

For example our software is used is used for page layout and design by a large number of book and news paper and magzine publishing houses that are all large enterprises making tonnes of money. A leading news paper in India (I will not name it for privacy reasons) was running on pirated versions of our software till a while back until the company provided them with free licenses. I also know a number of SMB's operating here who don't have any qualms about fleecing their customers in proportion to the cost they would incur if they were indeed using legit software tools which they depend on heavily and manage to have a fairly successful business but still do not ever want to buy the legit versions.

More than anything else, its our typical Indian mentality. We don't associate any moral guilt to any crime that we can easily get away with.

As for prices of these software, Personally IMO, MS may have a case for for reducing prices on some of their products given their potential customer base and how much they can earn even if they reduce prices , but for companies like adobe that have a targeted market, considering the amount of R&D and QC effort as well as the tech support overheads and the corresponding potential legit user base and piracy, I think the prices are more than fair.
 
Pirated Microsoft Windows 7 DVDs generate $100,000 in India



excerpt:

"There are over 200 shops in Naza Market. All have everything you want. We are not doing anything illegal as everything is available on the Internet," said a shopkeeper not willing to be named.

"We are only transferring and supplying to buyers who include students, professionals and even big business houses."

These nuts will def make for a bright environment for their lil ones in the house.
 
LOL p0rn is also available in abundance on the Internet. Let them try making DVD's selling them openly and see how fast the police comes and cracks a whip on their ass.
 
LOL p0rn is also available in abundance on the Internet. Let them try making DVD's selling them openly and see how fast the police comes and cracks a whip on their ass.

Lol at least here in Mumbai, they sell the DVD openly in front of major railway stations...
 
Lord Nemesis said:
LOL p0rn is also available in abundance on the Internet. Let them try making DVD's selling them openly and see how fast the police comes and cracks a whip on their ass.

visit palika in Delhi almost after 2 shops u`ll find shops selling xxx stuff openly in front of police:eek:hyeah::eek:hyeah:
 
Consider GTA IV and Ashes Cricket 2009 as examples. I had no hesitation in buying the originals for Rs.499 and Rs.475, but there are other software that I need but just can't afford. Never could understand why Microsoft won't offer an EMI version instead of releasing reatarded Starter Editions for 'emerging markets'.
 
hellfire said:
Consider GTA IV and Ashes Cricket 2009 as examples. I had no hesitation in buying the originals for Rs.499 and Rs.475, but there are other software that I need but just can't afford. Never could understand why Microsoft offer an EMI version instead of releasing reatarded Starter Editions for 'emerging markets'.

major9 said:
Unless these corporates sell their products to Indians at an affordable rates there will be piracy in all forms.

From a purely neural perspective, I would say that affordability has absolutely no role in controlling piracy. The thing is that people will pirate even if companies reduce prices.

What exactly is the definition of affordable prices? Some people bought GTA4 because its selling for 499/- and they think that's affordable, But a lot of people still pirated the game. There are tonnes of quality games selling for the 699/- and 499/- and 399/- in India and for a long time. I have been buying games at those prices for 10 years now. But that didn't do much to bring down the piracy, did it? OK a few people with decent earnings started buying a few originals now and then, but how much impact did it make towards the overall piracy figures?

Most people would pirate the game for cheaper than buy it at an affordable price as long as they can get away with it. If there are no consequences people would not stop pirating until every game/software is given way for free by the developer himself which kind of defeats the purpose. There is no end to the question how affordable is affordable. If MS sets the price of Windows & at 500 bucks then it would just reduce its piracy by just a wee bit and at such a price point, MS would not even recover the investment that went into the product.

There is only one solution to piracy and that is to ensure that people can't get away with it. Its implementation may not be that practical at the moment, but that's the only way to curb it. Even I pick stuff off torrents occasionally but I would think twice about doing it (and so will most of the people) if we have at least an 80% chance of landing in prison or pay a heavy fine for doing that.

Affordability of software makes little difference as along as people can get away with piracy. If people are just left with two choices either to buy or not to buy, then only affordability will make a significant difference in number of sales.
 
Lord Nemesis said:
Affordability of software makes little difference as along as people can get away with piracy. If people are just left with two choices either to buy or not to buy, then only affordability will make a significant difference in number of sales.

Exactly. Affordability makes little or no difference to piracy. I have seen many new PC owners wanting to have Photoshop installed in their machines just because they can get it free from someone. Half of these people do not even know what they would really do with it. Its just a matter of being able to tell others that I have xyz software installed in my machine.
Similar is the case with video editing software. Many have heard of Avid Liquid or Pinnacle but few know of Windows' own Movie Maker.
As far as games are concerned it gives many a mental satisfaction that I have such and such a game installed in my machine. Ask them about a level of the game and see them blow up.
If piracy could be controlled these, at least could be stopped.
 
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