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Malaysia cracks down on software piracy amid fear of WTO blacklist

| Source: AFP

Malaysia cracks down on software piracy amid fear of WTO blacklist

Agence France-Presse, Kuala Lumpur

Malaysia on Tuesday launched a nationwide crackdown on
companies using illegal or unlicensed software amid fears growing
piracy could lead the country to be blacklisted by the World
Trade Organization (WTO).

Businesses have one week to stop using pirated software after
which enforcement officers, working closely with watchdog
Business Software Alliance, will begin raiding offices, said
Zainal Abidin Mohamad Noordin, deputy director-general of the
domestic trade and consumer affairs ministry.

According to a BSA survey, Malaysia has a software piracy rate
of 68 percent, higher than the average 55 percent for the Asia-
Pacific region. This compares with 24 percent in North America
and 71 percent in Eastern Europe.

"We continue to take a hard stand against piracy. Any company
and senior management found guilty will not be spared from the
heavy penalties," Zainal Abidin said.

Individual offenders could be jailed for up to five years and
fined up to 20,000 ringgit (US$5,263) for each infringement under
stricter laws imposed in October, he told a news conference.

Copyright owners would be able to claim damages against
companies that use illegal or unlicensed software, he added.

The ministry has set up a special hotline and will issue
rewards of up to 20,000 ringgit for whistleblowers, he added.

The BSA survey said Malaysian industry lost $99.5 million in
software revenue in 2002 due to piracy, compared with a loss of
$5 billion in Asia-Pacific that year.

Domestic Trade and Consumer Affairs Minister Shafie Apdal at
the weekend voiced fears software piracy could dampen Malaysia's
aim of becoming a regional hi-tech hub.

"When piracy becomes difficult to control, Malaysia will be
blacklisted by the WTO as a destination for software piracy. That
may hinder the government's efforts to develop the nation to be
IT-savvy through the Multimedia Super Corridor," he said.

Stretching about 50 kilometers (30 miles) south of Kuala
Lumpur to the new international airport, the MSC is a hi-tech
enclave launched in 1996 as part of Malaysia's bid to move
towards a knowledge-based economy.

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