Posts Tagged: "software piracy"

Presumption of Guilt: How Microsoft Won a Protracted Battle on Unlicensed Software in Ukraine

In June 2019, five-years of legal proceedings between Microsoft and Zhytomyrgas PJSC in the Ukrainian courts came to an end. The parties began their battle in the context of criminal proceedings and ended the dispute in the economic court. Microsoft ultimately was successful. Ukraine has been among the countries on the U.S. Special 301 Report, prepared by the Office of the U.S. Trade Representative, for years due to its high rate of copyright violations. Ukrainian citizens, government agencies and enterprises are no exceptions. At the same time, Ukraine ranks second in Eastern Europe in the number of software developers and number one in the world in the number of developers per 1,000 inhabitants.

USTR: Counterfeit and pirated physical products valued at nearly half a trillion dollars

According to the Office of the United States Trade Representative, imports of counterfeit and pirated physical products are valued at about half a trillion dollars, or about 2.5 percent of all imports around the globe… The recent review of notorious markets by the USTR identifies 43 such markets offering counterfeit or pirated goods either through physical stores or online channels. A total of 25 notorious markets identified in the report operate in the online space as websites either facilitating infringing conduct or lacking consumer privacy safeguards, some of which even enable the installation of malware on consumer computers. This malware can include remote access Trojans (RATs) which can steal sensitive personal information, like bank account information, or gain control of computer hardware.

Seventh Global Congress on Combating Counterfeiting and Piracy Opens in Istanbul

Over 850 delegates from more than 100 countries are attending the three-day meeting from 24 to 26 April that is being chaired by the World Customs Organization (WCO) and hosted by Turkish Customs with the support of the Union of Chambers and Commodity Exchanges of Turkey. United around a common goal to stop the trade in counterfeit and pirated products, the organizers and participants aim to share experiences and devise strategies to counteract this global phenomenon and the harm these goods can have on consumer health and safety, as well as intellectual property rights (IPR).

Counterfeiting, A Growing Worldwide Problem

Counterfeiting is a far bigger story than loses to big companies and the associated loss of downstream economic activity. Those that support counterfeiters by buying knock-off goods are also increasingly supporting organized crime, including drug cartels, who are increasingly looking to the generous profits that can be earned and exceptionally low jail terms even if they do get caught. In fact, the largest Italian organized crime group is estimated to receive 10% of its annual $25 billion from counterfeited and pirated goods.

One Grave Problem: Counterfeiting, Piracy and IP Theft

Criminals are finding that the penalties for intellectual property crimes pale in comparison to the penalties they would receive for trafficking drugs and engaging in other illicit activities. At the same time, the profit margin for counterfeit software is extremely high. So the combination of great riches, relatively low penalties and a low likelihood of being caught and you can see why criminal enterprises, including terrorist networks, are becoming major players in the counterfeit software black-market. In fact, one of the most vicious drug cartels in the world makes an estimated $2.4 million per day selling counterfeit software.

Intellectual Property News from Eastern Europe

At the start of the new year I pledged that I would start to try and expand the scope of IPWatchdog.com to touch upon intellectual property matters outside the United States. In part this means trying to add an international flavor where appropriate, which is certainly always possible in part through discussion of the Patent Cooperation Treaty (PCT). In another facet it means profiling interesting stories relating to foreign intellectual property laws.

Culture of Indifference Fuels Software Piracy Market

The reality is that individuals and companies fuel the piracy market. Simply stated, if there were no demand there would be no supply, so it is quite disingenuous for us to only point the finger at the supplier, but rather we ought to acknowledge that there is plenty of blame to go around, which may be a hard pill to swallow. And while there may an intellectual distinction between sharing software or music with a friend or family member, there exists a cultural indifference that borders on contempt for the rights of creators.