Copyright and Software Piracy

Definition of Copyright

Copyright is a set of exclusive rights regulating the use of a particular expression of an idea or information. At its most general, it is literally "the right to copy" an original creation. In most cases, these rights are of limited duration. The symbol for copyright is ©, and in some jurisdictions may alternatively be written as either (c) or (C).

Copyright may subsist in a wide range of creative, intellectual, or artistic forms or "works". These include poems, theses, plays, and other literary works, movies, choreographic works (dances, ballets, etc.), musical compositions, audio recordings, paintings, drawings, sculptures, photographs, software, radio and television broadcasts of live and other performances, and, in some jurisdictions, industrial designs. Designs or industrial designs may have separate or overlapping laws applied to them in some jurisdictions. Copyright is one of the laws covered by the umbrella term intellectual property.

Copyright law covers only the form or manner in which ideas or information have been manifested, the "form of material expression". It is not designed or intended to cover the actual idea, concepts, facts, styles, or techniques which may be embodied in or represented by the copyright work. For example, the copyright which subsists in relation to a Mickey Mouse cartoon prohibits unauthorized parties from distributing copies of the cartoon or creating derivative works which copy or mimic Disney's particular anthropomorphic mouse, but does not prohibit the creation of artistic works about anthropomorphic mice in general, so long as they are sufficiently different to not be deemed imitative of the original. In some jurisdictions, copyright law provides scope for satirical or interpretive works which themselves may be copyrighted. Other laws may impose legal restrictions on reproduction or use where copyright does not - such as trademarks and patents.

Copyright laws are standardized through international conventions such as the Berne Convention in some countries and are required by international organizations such as European Union or World Trade Organization from their member states.

Copyright Law

Exclusive Right

The phrase "exclusive right" means that only the copyright holder is free to exercise the attendant rights, and others are prohibited using the work without the consent of the copyright holder. Copyright is often called a "negative right", as it serves to prohibit people (e.g. readers, viewers, or listeners, and primarily publishers and would be publishers) from doing something, rather than permitting people (e.g. authors) to do something. In this way it is similar to the unregistered design right in English law and European law. The rights of the copyright holder also permit him/her to not use or exploit their copyright for its duration. This means an author can choose to exploit their copyright for some of the duration and then not for the rest, vice versa, or entirely one or the other.

There is however a critique which rejects this assertion as being based on a philosophical interpretation of copyright law, and is not universally shared. There is also debate on whether copyright should be considered a property right or a moral right. Many argue that copyright does not exist merely to restrict third parties from publishing ideas and information, and that defining copyright purely as a negative right is incompatible with the public policy objective of encouraging authors to create new works and enrich the public domain.

The right to adapt a work means to transform the way in which the work is expressed. Examples include developing a stage play or film script from a novel; translating a short story; and making a new arrangement of a musical work.

Set of exclusive rights (right to exclude others):

to reproduce work in copies,

to prepare derivative works, including translations

to distribute copies to the public,

to publicly perform or display the work, or

communicate it to the public (broadcast)

“moral rights” of integrity & attribution

some rights to control acts of those who facilitate

or contribute to others’ infringement (e.g., ISPs)

Definition of Software Piracy

Software piracy is defined as the unauthorized duplication of computer software.

Copying software is an act of copyright infringement, and is subject to civil and criminal penalties.

History of Software Piracy

The first known instance of Software Piracy happened in 1975 when Dan Sokol, who was a member of Homebrew Computer Club, wrote a program that copied the punch card pattern of the Language BASIC, thus becoming the first Software Pirate.

The first major case happen in 1994, David LaMacchia, a 21 year old student at MIT, operated an Internet site that allowed users to upload and download pirated software.

Because he sought no profit from his actions, actions that caused substantial economic harm to software companies, he could not be charged under the criminal provisions of the copyright law at the time. The operation (called Buccaneer) targeted one of the oldest pirate rings called DrinkOrDie (DoD).

Founded in Moscow in 1993, DrinkOrDie (DoD) became famous among software pirates when it released a copy of Microsoft Windows 95 two weeks before the program went on sale. No arrests in the U.S. were reported at the time.

In Indonesia, software piracy caused by the high price of original software. In other side, the cost of software duplication absolutely cheaper then if the customer buy the original software, so customers will be drive to use copy of original software. Instead of the high price of original software, the producer design software in closed system.

Highest & Lowest Software Piracy Rates

Law of Software Piracy

Indonesia’s Law

Just like in many other countries, copyright in Indonesia is protected under the law (Indonesian Copyright Act No.19/2002). Most of the Indonesians are not well informed about this exclusive right everyone here is entitled as the first creator, or they just do not know how to process the registration of their creation.

Thus, if you create: books, computer programs, pamphlet, speech, science, drama, choreography, architecture, map, photography, cinematography, design industry, paintings, drawings, calligraphy, sculpture, collage, database etc. then you should protect such exclusive right by registering your Copyright in Indonesia through to the Office of Intellectual Property Rights Directorate General (Dirjen Hak Atas Kekayaan Intelektual called also Dirjen HAKI, a unit in Department of Justice and Human Rights). Even though a creation should be protected fist time when it was created, and NOT when it was registered, for anticipation on possible future claim against our copyright, it is necessary that we have sufficient evidence in a form of Registration Certificate to be presented as evidence before the court.

Law of software piracy in Indonesia are :

• Based on the Law on Copyright of 1982 no.6.

• Amandement of Copyright 1987 no. 7.

• The newest Law is based on UU Republik Indonesia no.19 Tahun 2002 Tentang Hak Cipta Pasal 72 ayat 3

"Barang siapa dengan sengaja dan tanpa hak memperbanyak penggunaan untuk kepentingan komersial suatu program komputer dipidana dengan pidana penjara paling lama lima tahun dan/atau denda paling banyak Rp 500 juta."

Software Piracy's Cases in Indonesia

In 2006 Indonesia success to degrade software piracy rates became 85%, and in sequence 8^th. Even the amount of loss in 2006 is equal to US$ 350 million or bigger than number 2005 equal to US$ 280.

The software that pirated at most are:

- operating system,

- office application,

- antivirus.

Several Forms of software piracy

1. Hard-disk loading involves loading software onto new computers when they are sold to a customer.
2. Softlisting, this involves installing software with a single-user license on multiple machines, and is the most common type of software piracy within companies
3. Forgery, that is producing and selling The ilegal software.
4. Software rental and illegal downloading.

Motive

Indonesia private company actually bought legal software for one PC. But in fact, from one legal software for one PC company use for more than one PC (they try to duplicate one software to many computers).

Cases

- Two Foreign Shipping Company in Batam,

PT Betamex and PT ASL Shipyard Indonesia used illegal software. They installed Autodesk, Microsoft, and Symantec without any lisence.

- PT Panca Putra Komputindo, HM Computer, HJ Computer, and Altec Computer, which is located in Mangga Dua, had to pay $ 4.764.608 to Microsoft Corporation for the loss.

- PT Procomm had to pay $ 4.4 million to Microsoft for the same case.

- 4 Internet Café in Malang used illegal software, and the total loss is more than $ 1 million.

SOLUTIONS

Anti-Piracy Organizations

• Software Publishers Association (SPA)

Online Reporting Forms, Certified Software Management Seminars,Education Materials,Audit Software,Corporate

Anti-Piracy Programs

• Business Software Alliance (BSA)

– Online reporting form

– Software Asset Management Strategies (S.A.M)

• Employer Audit tools

• Youth Education

• University Education

• The Entertainment Software Association (ESA)

• Universal Copyright Convention (the “UCC”)

Reducing Software Piracy in Indonesia

• Indonesia government cooperate with BSA (Business Software Alliance) try to reduce and war illegal software by giving 50 million rupiah to Indonesian people who give the information about company which used illegal software (included duplicated software)

• Change software to Open Source System

IGOS Program (Indonesia Go to Open Sources)

• Special pricing offered by Microsoft for Developing Countries, including Indonesia.

• Make MoU with Microsoft

Educating Customer

By educating consumers about the cost to those who are robbed of their intellectual properties and the consequences to those who are caught, consumers will take it upon themselves to stop.

For Example :

If customer bought an illegal software, Based on UU Republik Indonesia Nomor 19 Tahun 2002 Tentang Hak Cipta Pasal 72 ayat 3 he/she realized the consequences of it. Such as going to court, caught by police, etc.

Good Impact of Software Piracies Reduction

The Impact of software piracy up to 10% in four years based on International Data Corporation (IDC) degradation:

• Create addition 3.000 work field

• Adding Domestic Product of Bruto ( PDB) Indonesia equal to US$ 3,3 milliard or about Rp 30 triliun.

• Make-up of earnings of local vendor equal to US$ 1,5 milliard (Rp 13,5 triliun).

• Improve governmental earnings of tax equal to US$ 152 million (Rp 1,4 triliun).