Piracy, Pirates and Offshore Techies
During the past few weeks, one couldn’t glance through the international headlines without reading about the saga of Piracy unfolding in the Gulf of Aden and at high-seas. To those of us in the software IT services business, another version of this scourge continues to impact us: software piracy.
Given that Piracy is noteworthy and the pirates at sea are operate offshore, I am surprised that some smart alec writer or blogger hasn’t picked up on offshoring piracy. It is probably because large software services firms, Infosys included, take Intellectual property rights seriously. Most have strong policies and guidelines preventing employees, consultants and service providers from indulging in such acts and violations are not tolerated.
The numbers in terms of dollars lost to software piracy are hugh. For instance, this article talks about how “Software ranks among the most popular categories of counterfeited goods, and the Internet is only contributing to the rise in intellectual property violations, according to research by a piracy-prevention consultancy . . . During the month of June 2005, $91 million worth of entertainment media and software was pirated worldwide, up 13 per cent from December 2004, according to research from Canada's Gieschen Consultancy.”
Though companies discourage the practice by strong enforcement within their environments, software piracy continues. Pervasiveness of wi-fi and broadband has made piracy a cottage industry. Many of us may support or actively participate in piracy without even blinking. Here is a dipstick: Do you feel guilty about making copies of the latest music hit that your friend bought? (or the other way around) While doing so, you may not feel as sinister as a gang of Somalis taking the captain of Mersk Alabama hostage, it is still about the owner of the “rights” not getting their due share. Which makes one wonder if there such a thing as Harmless piracy?
Comments
Well put. The media figures reminded me of something I'd written a while back on the music industry. I'm afraid the industry still hasn't understood the economics of their 'consumer', more so the customer. People are always waiting for a hassle free, immediate and cheaper option. Owning music should be an ‘asset’ and not merely a download or a cheap jewel case.
Posted by: Deepak | April 28, 2009 11:50 AM
Piracy increases with costs. Who wouldn't prefer a copy of an audio or video CD at not more than 10th of its original cost? Who wouldn't prefer to watch latest films at home at Rs. 40 or Rs. 50 for an entire family (eg. 4) instead of spending Rs. 1000 at least by visiting a multiplex? Does the film industry or any other industry think on these terms before it moves to fight piracy? Give original legitimate CDs of films/music at 1/4 of their cost, sell a movie ticket at Rs. 50 per person, more people will prefer to watch/hear an original product at this cost or at the multiplex, and more will be the sales for the video / music industry and the film industry.
Posted by: Deepak Manerikar | April 29, 2009 8:14 AM
Deepak and Deepak M,
The industry may have to take responsibility and “innovative” business and pricing models certainly need to emerge. I guess the models need to be equitable enough that everyone in the value chain – artists and other support people, producers etc – need to also be rewarded for their effort.
For instance, even with the pervasiveness of online media, many pay hundreds of dollars for a concert experience, while a download of the performance may very well be available in iTunes for $1.99.
Who defines what the right price one is willing to pay for “entertainment”?
There again, Piracy is about trying to get away not paying *anything*
Posted by: Mohan | April 30, 2009 6:31 AM
I agree with the previous comment.
For example, in case of a music album, only part of the share goes to the artist, and lots goes to the company and advertisers! We pay for it.
In software, as more open source comes in the picture, the piracy will reduce (Why would somebody steal, if it's available for free).
Same can be seen in the music industry. Emergence of websites such as last.fm, where you can upload the music you have "created" reduces cost. (Analogical to open source) I am sure the day is not far, when music companies are not relevant anymore, but only have one role to play, to provide the recording studio on an hourly basis!
Posted by: Vishal | April 30, 2009 2:08 PM
Hi Mohan,
Interesting to see similarities between the "ruthless" Somalian pirates and a white-collar software programmer. I agree with some of the previous comments that the trend today is towards adopting more open source software. One of my entrepreneur friends is running his business using Google's suite of applications which are either free to use or available for a nominal charge.
Posted by: Narayan B | May 4, 2009 8:06 AM
Even after so much of Free Programs and Open Source movement, people still prefer to use pirated version of Windows, rather than a genuine copy of Linux.
The grooming should start from primary level and instead of pupils being taught on Windows, they should be introduced to Linux.
The other generic fact remains that the user thinks that he is paying for the CD and while negotiating the payment they forget the hardwork and the resources spent to develop the program, movie, music or even the game on the CD.
Posted by: Rupam Guha | May 6, 2009 11:47 AM
Laws of the land have specific physical boundaries to act. With no physical boundary and the nature of virtual web world which makes it fairly impossible to implement any kind of rules, laws or algorithm preventing piracy. I believe piracy can only be reduced with mass low cost availability. If it's available for me legally at let's say 1 Rupee, I wouldn't go for copying it from my friend (which of course will cost me more). And for the company, it's the volume which will give them the return on their investment. Isn't that what Wal-Mart is doing for retailing?
Posted by: Amitav | May 6, 2009 12:07 PM
I agree with Rupam that this education should start from the ground level.
Still today, most of the people buy pirated Windows and use them rather than moving towards Open Source Options which are free and more robust.
I guess this change in mindset will take some time.
Posted by: Freshers Jobs in India | June 23, 2009 7:57 PM
This menace can only be curbed if the big companies start introducing much better deals & offers on the original software CD's.
In addition to this, they have to tie up with the Local Dealers and convince them about the pros of the system because removing the pirated stuff from the retail markets is a big challenge.
Posted by: Govt Jobs in India | July 30, 2009 9:04 AM