Pirated software easy to find on local market

Damar Harsanto, The Jakarta Post, Jakarta

Seven months after the West Jakarta District Court ordered a local computer wholesaler to pay US$4.4 million in compensation to U.S. software giant Microsoft Corp., pirated software can still easily be found at the Glodok and Dusit Mangga Dua computer stores in West Jakarta.

The overall amount of available pirated software, however, is considerably less after the Sept. 24th verdict.

"You can still find some of the software rather easily," said Boyke, a computer software salesman. "If you buy a set of personal computers (PCs), you can get it installed."

Each pirated version of Microsoft Windows 98 software is available at a cost ranging from Rp 20,000 (US$2.1) to Rp 25,000 -- compared with the original, which is worth more than $100.

Boyke acknowledged that Microsoft's victory in the legal arena has left many local PC dealers under the gun to sell pirated software themselves.

In this case, the local computer dealer lost to Microsoft after it was found guilty of installing Microsoft software without the appropriate license.

In a series of interviews conducted by The Jakarta Post, several computer vendors said that they only sold hardware and basic accessories.

"We only sell hardware now -- there is never any software," said Winarta. The customers, he added, "will buy the software themselves."

Each piece of hardware is sold at anywhere between Rp 4 and Rp 6 million.

According to another vendor, Boy, most of the computers sold in the centers at the heart of the current legal wrangle were already outfitted with software prior to arrival.

"It's impossible to sell just hardware," he said. "No customer will buy a computer if they can't use it."

The fact that many shops still sell pirated software is also recognized by chairman of the Association for Indonesian Computer Dealers (Apkomindo), Hidayat Tjokroadjojo.

He said the amount of pirated software installed in all PCs in the country was "only" 70 percent, instead of 90 percent as was earlier claimed by Microsoft.

Hidayat said most oil and gas companies, and financial and banking institutions have been using the original software.

"The pirated software is only used by small corporate businesses and individuals."

The reason? Both users, it seems, saw no need in upgrading their programs. In general, they were employing a much lower level of computer technology.

"Some distributors, however, have just begun to discourage customers from using pirated ones anyway," Hidayat said.

The increase in sales of the original programs will certainly prompt software makers to reconsider providing cheaper products.

"It will be their interest to sell the old versions of the original product at a cheaper price."

Apkomindo predicted the sales of computer hardware would increase to 500,000 PCs and units this year -- from 450,000 last year, thanks in part to the recovery in the country's economy.

Around 80 percent of computers on the market are sold in Jakarta's computer centers.

"As a result of the strengthening economy, many corporate and individual entrepreneurs will expand their businesses," he said, while "supporting business infrastructure -- including computers."

Conditions have been steadily improving ever since the government first issued a policy scrapping luxury taxes imposed on PCs, which were first implemented last year.