Fri, 29 Aug 2003

Copyright law hits Internet business

The Jakarta Post, Jakarta

The new copyrights law could hamper the growth in the number of Internet users, as software products cost internet service providers more.

Heru Nugroho, the secretary general of the Indonesian Internet Service Providers Association (APJII), said Law No. 19/2002 on copyrights may lead to the collapse of internet services such as internet cafes, locally known as warnet.

The law also covers intellectual property rights for software, fundamental to internet service providers.

"The government has abolished the use of illegal software. Now, they must come up with an alternative such as developing open source software," Heru said on Thursday as quoted by Antara.

Open source, refers to information technology -- consisting of such things as training, software and consultations -- available free to internet users.

Linux is the most popular information technology company, offering training, solutions and consultations on any aspect of the open source operating system.

It is in opposition with the giant information technology company, Microsoft, whose software, related training programs and other elements -- required to operate the Microsoft system -- must be purchased at a high price, due to proprietary rights.

According to Heru, the association initially predicted internet users to increase to 5.5 million this year, from 4.2 million last year. But Heru said the figure may not reach 5.5 million if the government does not provide options for users.

APJII records indicate that internet subscribers in the country, in the first semester of 2003, reached 630,000. This consisted of subscribers from the education sector (40,000), residential and internet cafe users (550,000) and corporate sector subscribers, (40,000).

Indonesia is the third-largest market for pirated entertainment products after China and Vietnam. More than 80 percent of all CDs, VCDs, DVDs and computer software and video-game discs are illegal copies, industrial experts have said.

It is estimated that about 80 percent of businesses that have computers in Indonesia use illegal software products.

When the government enacted the copyrights law in July many businesses panicked as they had to spend millions of rupiah to buy legal software.

The crack down on vendors and internet cafes owners for using illegal software would not help curb piracy. Instead, it would renew the conflict between the public, internet cafe owners and the government, Heru said.

Heru suggested the campaign to use legal software should be implemented gradually. For example, by not forcing internet cafe owners to immediately swap the illegal software for legal software.

Internet cafe owners could make the changeover gradually and under the government's supervision, he added.