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What is Intellectual Property? > Study Aids > Copyright Notice > Software Piracy and the Law

Software Piracy and the Law

 

This Contribution is Courtesy of the Business Software Alliance

 

What is the law?

The relevant law in Hong Kong is the United Kingdom Copyright Act 1956 which prohibits the unauthorised copying and use of computer programs. The Computer Software Amendment Act, extended to Hong Kong in 1988, strongly protects the copyright of software programs, manuals and related books as literary works. In addition, the Copyright Ordinance (Cap.39) creates penalties for unauthorised use and duplication of software. These laws have international effect as Hong Kong is a member of the Berne and Universal Copyright Conventions, further strengthening its commitment to copyright protection.

What are the penalties?

If you or your company are found to be using, selling or distributing pirated software you may be tried individually or together under either civil and criminal law. To release, reproduce, revise, translate, distribute or publish any software protected by copyright and without the consent of the software copyright owner can be an act of infringement.

As an individual, if you infringe software copyright by means of release, reproduction, revision, translation, distribution or publication, you are subject to a maximum fine of HK$50,000 for a first offence. For each subsequent offence you are liable for a fine of up to HK$50,000 or imprisonment of up to one year.

If you, as an individual or in a business, make or possess for trade or any other purpose equipment for illegally reproducing software, software manuals or related books, you can be subject to a fine of up to HK$50,000 and imprisonment of up to two years.

If you possess an infringing copy of a software program, manual or related book for trade or business purposes and reproduce it for multiple simultaneous use in a business, you may be subject to a fine of up to HK$1,000 per infringing copy as well as imprisonment of up to 12 months.

What are your responsibilities as a user?

Your first responsibility as a software user is to purchase original programs for your use only. If you purchase software for business use, every computer at your place of work must have its own set of original software and accompanying materials. It is illegal to purchase a single set of original software to load on to more than one computer or to lend, copy or distribute software or software manuals for any reason without the prior written consent of the software publisher.

When purchasing software make sure you buy only legitimate products. Many counterfeit packaged products are designed to look identical to original manufacturers' products, but are inferior in quality. If you use counterfeit or copied software, then in addition to the legal risks noted above, you also face other business risks, including exposure to viruses, corrupted disks and defective software. One of the greatest dangers of using unauthorised software is its ability to destroy valuable data.

Unauthorised software copies lack the quality controls built into original software, making copies far more prone to computer viruses. Using unauthorised software not only puts your organisation's computers at risk, but your data resources, financial systems and all other vital business functions become vulnerable. This can cause you:

  • Lost time
  • Lost money
  • Lost credibility
  • Lost business

The only guarantee that comes with the use of unauthorised software copies is the guarantee of no original documentation, no technical support, no distribution of upgrades and no quality assurance.

Unauthorised software copies do not provide the reliability your organisation needs to function efficiently and are counterproductive to every investment your organisation makes.

Estimated revenue losses for the industry in Hong Kong

Software theft in Asia was responsible for almost USS4 billion of the estimated US$12.8 billion lost to the software industry worldwide last year, according to recent software piracy estimates released by the BSA.

The 1993 revenue losses for the US software industry in Hong Kong as a result of software theft were estimated to be almost US$49 million, reflecting a piracy rate of 66%. These losses continue to inflict significant damage not only to the software industry but also to the entire Hong Kong economy.

Software theft not only robs software publishers of their products, but also deters local involvement in software development and stifles regional innovation and the advancement of technology.

Government commitment to law enforcement

In August 1989 enforcement of Hong Kong's Copyright Law was passed to the Investigation Bureau of the Customs & Excise Department. A copyright Investigation Group was formed and since that time, the Group has actively pursued and prosecuted software thieves throughout Hong Kong.

Customs is committed to taking enforcement action against infringers at all levels' retailers, hardware vendors and distributors to business users of software. Customs officers have wide powers of search, seizure and arrest, and use these powers as a principal weapon against software piracy.

Local anti-theft resources

If you suspect you may have purchased counterfeit software, you should contact the BSA for advice. The BSA will be able to give you the names and addresses of licensed dealers in Hong Kong where you will be able to purchase original software. If you know of software thieves or outlets where counterfeit products are sold, call the BSA to report your concerns.

If you would like more information regarding software piracy in Hong Kong contact

The Business Software Alliance
20/Fl., Cityplaza 3,
14 Taikoo Wan Road,
Quarry Bay
Hong Kong

Fax: (852)-2560-6247 or call the BSA hotline on (852) 2865 3318.

 
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2004 | Important notices | Privacy policy Last revision date: 2 October, 2008