Microsoft 'may legalize' illegal Windows for $1

Rendi A. Witular, The Jakarta Post, Jakarta

U.S. software giant Microsoft Corp. is considering legalizing pirated Windows systems already installed on government computers here as part of a planned amnesty on software pirating before Indonesia cracks down on the illegal trade.

Minister of Information and Communication Sofyan Djalil said on Wednesday the amnesty would allow the government to pay US$1 for each computer that had an illegal version of Microsoft's Windows operating system installed.

"Microsoft will certify the already-installed illegal software. But in the future, all government computers must have legal software produced by the company," he said.

The company's proposal follows up the recent meeting between President Susilo Bambang Yudhoyono and Microsoft chairman and founder Bill Gates at the company's headquarters in Seattle.

However, legalizing pirated software would take some time as the government must register all desktop computers in its offices nationwide, estimated to total more than 50,000 PCs.

"Microsoft is being realistic. They can't force developing countries like us to solely use legal software, since we can't afford it. They want us to gradually reduce our use of it," Sofyan said.

He said Microsoft was happy to provide developing countries with an amnesty as long as it was assured the company was committed to upholding intellectual property rights by cracking down on producers and distributors of pirated software.

A study by the Business Software Alliance (BSA) revealed that Indonesia ranked fifth in global software piracy after Vietnam, Ukraine, China and Zimbabwe two years running in 2003 and 2004. With 87 percent of software on the market estimated to be copied, sales of legal software here last year accounted for only US$27.3 million, compared to a potential market of about $210 million.

Meanwhile, State Minister for Research and Technology Kusmayanto Kadiman said the government would also negotiate with Microsoft on the time period for the amnesty as well as other requirements.

"We will propose that the amnesty lasts for a one-year period. From 2007, we will promise there will be no more pirated Microsoft software in local markets or institutions," he said.

The government will soon focus on its efforts to encourage government offices, businesses and schools and universities to use legal Windows software.

Kusmayanto said during the Seattle visit, Gates had said the company was interested in setting up its fifth research center in Indonesia -- after the U.S., UK, China and India -- that would aim to make affordable Windows applications for developing countries.

By making its package more affordable, Microsoft hoped to gradually reduce software piracy Indonesia and neighboring countries.

Kusmayanto said the government "would support the company to realize the plan".

However, before Microsoft decided to invest here, the company would first review the country's grand design for the information technology industry that was currently being prepared by the government, he said.

For its research station, the government planned to provide Microsoft with some 300 hectares of land equipped with sufficient broadband and telecommunications facilities, clean water and a dependable electricity supply, Kusmayanto said.