The fine line on pirated goods<\/p>\n
Pirated items are on sale on almost every street corner and in
\nmalls across the country. From computer software to dictionaries,
\nfrom expensive consumer goods to films -- it appears there is a
\nmarket for everything.<\/p>\n
They sell well thanks to the copycats' perfect copies. Many
\ncondemn piracy but most people enjoy its convenience. The Jakarta
\nPost reporters Sylvia Gratia M.N., K. Basrie, Sugianto Tandra,
\nYogita Tahil Ramani, Johannes Simbolon, Ida Indawati Khouw,
\nPrimastuti Handayani, PJ Leo and IGGP Bayu Ismoyo uncover the
\nstory behind rampant piracy. More articles are on Page 3 and Page
\n9.<\/p>\n
JAKARTA (JP): An executive was driving a new Suzuki Baleno
\nsedan that his office leased for him. He looked smart in his fake
\nVersace tie and his counterfeited YSL long-sleeve shirt.<\/p>\n
His bogus Movado watch read 12:30 p.m.<\/p>\n
He was heading to a restaurant in Central Jakarta to host a
\nlunch for his business partner from China. On the way to the
\nrestaurant, he turned on his latest hits collection from a
\ncounterfeit compact discs he bought several weeks ago.<\/p>\n
\"Nobody would visibly know all these perfect accessories I'm
\nwearing have bogus trademarks and, most of all, I don't feel that
\nI have violated any law because I bought all these things legally
\nat common shops here,\" Hendry told The Jakarta Post.<\/p>\n
Indonesia, home to over 200 million people, has been a
\nfavorite places for international and local copycats for many
\nyears and the sale of these goods is growing with the country's
\neconomic development.<\/p>\n
There is now a wide range of illegally copied products. Among
\nthe favorites are video CDs, karaoke LDs, computer software,
\npublications, jeans and casual wear, perfumes, watches, purses,
\nhandbags and footwear.<\/p>\n
Pirated video CDs include movies the government has banned and
\nones which have not been distributed here yet. The karaoke LDs
\nare of hit songs re-recorded using the voice of other singers,
\nwhile pirated computer software includes Microsoft Windows 95 and
\nWindows 97.<\/p>\n
Popular pirated publications are dictionaries, computer books
\nand university text books. The copied jeans, perfumes, watches,
\nshirts, handbags and footwear bear renowned brand names like
\nGuess, Levi's, Gucci, Louis Vuitton, Stussy, Reebok, Adidas,
\nAlien, Versace and DKNY.<\/p>\n
At some places in Jakarta and Central Java, customers can even
\norder handbags with the trademark they want.<\/p>\n
Prices<\/p>\n
The prices of illegal products are, of course, much lower than
\nthe price of original products.<\/p>\n
It is true that quality has its price but sometimes, like with
\ncertain video CDs and computer software, the quality of pirated
\ngoods is quite good.<\/p>\n
The pirated version of Microsoft's popular Windows 95 software
\ncosts about Rp 15,000 at Glodok shopping center. The real thing
\ncosts about Rp 400,000.<\/p>\n
A good-looking counterfeit Gucci handbag at Blok M shopping
\ncenter costs about Rp 50,000. The original bag could cost 10
\ntimes that.<\/p>\n
\"I once bought bogus video CDs after I learned that the
\nquality of counterfeited CDs was just as good as the original
\nones,\" an artist said.<\/p>\n
Everyone has their own reasons for buying, or not buying,
\ncopied goods.<\/p>\n
Oscar, a trader at West Jakarta's Mangga Dua shopping center
\nsaid \"foreigners, like Europeans and Asians, say buying pirated
\nclothes and accessories makes them happy because of their
\nreasonable prices and they don't have to worry if the goods are
\nlost, stolen or tainted\".<\/p>\n
But intellectual property rights theft has affected other
\nparties, particularly the real producers, their agents and the
\ngovernment.<\/p>\n
PT Levi Strauss Indonesia said counterfeited Levi's blue jeans
\nin Indonesia had affected sales and degraded the brand because
\nthe poor quality of imitations had destroyed customer's
\nconfidence in Levi's authentic products.<\/p>\n
The Gramedia publishing company's promotions manager, G. Aris
\nBuntarman, estimated that 99 percent of publications at book
\nstores in Senen, Central Jakarta, and in Jatinegara, East
\nJakarta, and in Bandung, were pirated.<\/p>\n
So, what's the total loss suffered by original producers?<\/p>\n
The Association of Indonesian Recording Industries, which was
\nset up to crack down on pirated cassettes, said piracy cost the
\nindustry billions of rupiah a year.<\/p>\n
The association's chairman, Armel Affandi, said 1.2 million
\ncounterfeit cassettes entered the market each year.<\/p>\n
\"The government, which collects taxes worth Rp 200 a cassette,
\nloses around Rp 240 million a year,\" he said. \"We lose more.\"<\/p>\n
99 percent<\/p>\n
The Association of Recording Video Importers estimated that 99
\npercent of video CDs sold in Indonesia were pirated versions of
\nfilms from Hong Kong, Japan and the United States.<\/p>\n
The computer industry watchdog Business Software Alliance said
\na study by the International Planning and Research Corp. found
\nthat about 97 percent of software in Indonesia was pirated,
\ncosting the industry US$197.3 million last year.<\/p>\n
This means Indonesia has the world's second highest rate of
\nsoftware piracy, after Vietnam.<\/p>\n
Bambang Kesowo, chairman of Team Keppres 34, the government-
\nsponsored body set up to protect property rights, said there were
\nno accurate figures on what the total cost of piracy was?<\/p>\n
\"All of it is just estimates,\" he said.<\/p>\n
But why do people enjoy selling and using pirated goods?<\/p>\n
\"A lot of people are still ignorant about intellectual
\nproperty rights because they really do not understand rights and
\ncopyrights,\" Bambang said.<\/p>\n
Armel said poor law enforcement contributed to the growth of
\npiracy in Indonesia.<\/p>\n
Despite piracy being widespread, Indonesia has the laws to
\nbring pirates to court.<\/p>\n
Article 44 of the 1987 Copyright Law states that anyone found
\nguilty of copying intellectual works for business purposes
\nwithout permission faces a maximum seven years jail and a fine of
\nup to Rp 100 million.<\/p>\n
Police have conducted a series of raids, arrested suspects and
\nburnt illegal products but they have not been able to stamp out
\npiracy.<\/p>\n
Many say the government and the community has not yet shown
\nthe will needed to take decisive action against piracy.<\/p>\n
The Indonesian Creative Works Foundation's secretary general,
\nChandra Darusman, said \"it should be begin with intellectuals\".<\/p>\n
He lamented that many intellectuals, like university students,
\nhad committed piracy, particularly by copying software, cassettes
\nand books.<\/p>\n
\"It's humiliating because intellectuals are ignoring property
\nrights,\" he said.<\/p>\n
But, is it the right time to start clamping down on piracy? Or
\nis it too late?<\/p>",
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"sponsor": "Okusi Associates",
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