Indonesia makes progress in ending software piracy

JAKARTA (JP): Indonesia, singled out by the U.S. as one of the worst offenders of property rights, is making progress in eliminating computer software piracy, the U.S.-based Business Software Alliance (BSA) said yesterday.

By August, BSA's international hot line had received more than 100 reports on Indonesian stores selling pirated software or Indonesian companies using unlicensed software, BSA vice president David Sigler said.

He said the reports were recorded in preparation for further investigation by the Indonesian authorities.

"Law enforcement of copyright law is progressing (in Indonesia). We're working closely with the police," Sigler told The Jakarta Post yesterday.

By enforcing copyright law, Indonesia's image will improve because it means that Indonesia is fulfilling its treaty obligation to protect property rights, he said.

Founded in 1988, BSA is a non-governmental agency, representing computer software companies, that detects and takes action against violators of copyright law.

BSA claims that 99 percent of the software circulating on the Indonesian market is illegal.

Sigler revealed that 20 Indonesian police officers are in Australia for a three-month course on computer software. "After their return, we're going to work on putting together a very tight and effective enforcement program," Sigler said.

Lt. Col. Hadi Purnomo, the police head of international trade and production, said the police were working hard to stop software piracy.

But he admitted the police were facing difficulties. "The police officers' knowledge of sophisticated technology, such as computers, is inadequate," Hadi said.

He said some officers had undergone language and computer software training to support their tasks.

Signer said, however, that Indonesia topped the world's software piracy rates with 99 percent of the software on its market being illegal. Software piracy causes the world's major software producers to lose an estimated US$112 million annually, he added.

"In comparison to China and Japan, the piracy rate in Indonesia is higher. In China, the rate is 98 percent. But, if we look at the financial loss, China and Japan made software companies lose more due to their much bigger economic scales," Sigler said.

"Software piracy, illegal copying and the use of unlicensed software not only violate the Indonesian Law but also, could have wider implications for Indonesia's trade status with foreign trading partners in the future," Sigler said.

Indonesia is among the developing countries that the United States has accused of rampant violations of intellectual property rights. Indonesia passed a law on intellectual property rights in 1987.

The Indonesian government renewed its pledge to crack down on computer software piracy last April.

Article 44 of the law on intellectual property rights states that anyone found copying intellectual works for business purposes without a permit may be imprisoned for up to seven years and fined up to Rp 100 million (US$38,000).

The law also stipulates that anyone found illegally broadcasting, displaying, distributing or selling copies of intellectual work faces up to seven years in prison and a Rp 50 million fine.

Yesterday, BSA gave two cash rewards of Rp 2.5 million (US$1,063) to two anonymous Indonesians who had reported software piracy in Jakarta and other cities via the agency's hot line.

Sigler also presented Original Software Used Here certificates to four companies: PT Amoco Mitsui PTA Indonesia, PT Mivan Indonesia, PT Reasuransi National Indonesia and the Suara Pembaruan daily newspaper for signing a "Software Code of Ethics" declaration. (ste)