[clari.nb.general] Software Piracy: More Than One View - Editorial by N. Wingrove

newsbytes@clarinet.com (02/04/90)

CAUSEWAY BAY, HONGKONG, 1990 JAN 30 (NB) -- Software piracy has 
long been a hot topic and never more so than in Hongkong. Perhaps 
that statement should be widened somewhat to cover much of the 
Far East. The true capital of computer piracy for the last decade 
and more has been Taiwan, but to people all over the world mere 
mention of piracy in relation to software means one particular building. 

The Golden Shopping Centre in Shamshiupo is not very large. It is a 
rather nondescript building in an modest suburb incorporating 
a cinema in one corner and a basement, ground floor and one other 
story of shopping arcades, most of them dedicated to computers 
and associated hardware, software and manuals. These days most 
of the shops display and sell genuine goods, but many are still 
able to supply illicit copies from a backroom or a nearby storeroom. 

Repeated raids by the Customs and Excise Department, largely 
instigated by US software houses, and subsequent prosecutions 
have put some operators out of business and forced others to 
assume at least an appearance of respectability. But in the 
process a great deal of resentment has been created among 
perfectly legitimate computer users. 

Perhaps the most powerful local argument against the Customs 
raids is that taxpayers' money is being squandered to protect 
the private interests of a handful of US companies. There is a 
continuing public debate through newspaper correspondence 
columns on the rights and wrongs of piracy. The industry insists 
that its rights are being infringed and that it is losing millions of 
Hongkong dollars to the pirates. The customers, who have next 
to no consumer protection in Hongkong, reply that they only buy 
pirate software to provide themselves with the services not 
supplied locally by the companies. They point out that they have 
to pay much higher prices for software than the US full list price, 
yet there are no facilities for them to check out programs for 
suitability to their needs and, if they do eventually buy, they are 
given no backup support. The pirates are seen to fulfill at least 
one of the potential buyer's needs. You can buy a pirated program 
and manual, try the package out and if it doesn't come up to 
scratch, ditch it. On the other hand, many people have bought the 
genuine article after finding it did satisfy their needs. 

This process is particularly important outside the US. All too 
many programs ignore the fact that there is a big wide world 
outside the narrow confines of the USA. Software which is 
excellent in principle may totally ignore the reality that not 
everybody uses the US dollar, or that US dollar data fields are too 
short to hold the data. Think of the Japanese yen, the Italian lira, 
the Thai Baht or even the Hongkong dollar at 7.8:1 against its 
US counterpart. A person buying a package that does not cater 
to his currency requirements would end up wasting money on 
a useless purchase. 

There are many Australian and European software packages now 
available that do recognize the need for flexibility in such 
matters as currency fields. Many of them are equal to or better 
than their American counterparts and are invariably only a 
fraction of the price. Interestingly, it is rare to see pirated 
versions of any of these on sale at Golden Shopping Centre. 

Some US word processing programs still ignore the fact that 
American spelling is not universal. A dictionary is useless unless 
it speaks your language. In all too many cases the only way a buyer 
can find out if a WP package provides an English English dictionary 
is to buy it, or a pirated copy. Frequently an English dictionary is 
available - but only as an optional extra. Who can blame the 
customer for shopping elsewhere - assuming he hasn't already 
spent his hard-earned money on a program that can't check his 
spelling properly because he didn't have the sense to try out an 
illicit copy first? 

What it all comes down to is arrogance on the part of all too 
many software publishers. They fail to provide their potential 
customers with the information and backup needed to make 
viable an investment in their software, and then complain 
when those customers try to check matters out for themselves. 

All this leaves out the question of students. Until now there has 
been almost no attempt by the major software publishers to 
address the needs of Hongkong students. Schools, colleges and 
the students themselves invariably have to pay the full price 
for software and abide by all the finer licencing conditions - 
or buy a $4 pirate copy. There are at last signs that the 
companies are coming to their senses and making special 
arrangements for educational institutions and their students. 
In the meantime, thousands of students have bought pirated 
software, learned from it, evaluated it and either thrown it 
away or proselytised on its behalf when they have graduated 
and gone into business. 

This process is not confined to students, however. Many real 
users have started off with pirated copies for the reasons 
mentioned earlier. No one whose livelihood or business 
depends on the reliability of computer software entrusts it 
in the long run to a pirate copy. That may be alright as long as the 
program works. But what happens when it crashes? On the other 
hand, who in his right senses would spend several hundred or 
even thousands of dollars on an untried product for which 
no demonstration facilities are available? 

Hongkong is fairly typical of the Far East. When buying software, 
you are on your own. Chances are the dealer has no stock of the 
program you want. He will order it for you, at a cost far higher 
than the full US list price and with a delivery time, if you are 
lucky, of a month. Once it has arrived, if anything goes wrong, 
your only recourse is to spend money on an international phone 
call to the US publisher. In the meantime, your business languishes. 
Then, when a later version comes out, you are foolish enough to 
expect to be able to take advantage of the publisher's upgrade 
offer. You go to the local dealer. "Yes we can upgrade this for 
you. You must return the original discs and manuals and we will get
 the new version for you sometime." This is no exaggeration. 
One prominent Hongkong businessman went through this a year 
ago with a famous product. At the local distributor he ran into a 
brick wall. Eventually from pure frustration he contacted the 
US principal via The Source. In no time at all, the latest version 
was on its way to him, together with other, complimentary, 
software. The Hongkong distributor was quickly replaced by 
a competitor. Two weeks ago the same man had a similar experience 
with another company's product. In this case, he was quoted a price 
for an upgrade which was considerably more expensive than the 
normal retail price for the original product, already far above the 
US price. The present writer recently tried to upgrade a 
programming package. The original discs had to be returned. A 
delivery time of three weeks was quoted. More than six weeks 
later it had to be chased up. When it did arrive, it lacked the 
essential manuals. After another month of fruitless waiting, 
a message via Genie to Borland International brought an immediate 
and generous response. 

The following is a message on the HongKong Computer Society's BBS 
from a businessman to the author on a similar occurrence. Quote: 
"I agree completely, I wrote to XXXX XXXXXXX to upgrade from 
Turbo C 1.5 to Ver. 2.0 Professional. They replied that I would 
have to send manual and disks back to them at Singapore then 
pay exorbitant freight charges for shipping the upgrade. I thought 
that this was a load of nonsense and wrote directly to Borland 
in the States. Within 10 days I received the software (complete 
package - assembler/compiler/debugger) charged to my Visa 
card. The savings on doing it this way was US$55- on the price 
quoted by XXXX XXXXXXX. Borland has my vote every time for 
good support. As for local dealers, I just don't want to know. 
If I get bad service from a company in the States there are 
plenty of magazines to write complaining letters to, here 
nobody cares, it is definitely a case of "caveat emptor!" 

 Borland International, needless to add, is not among the 
companies creating such a fuss because their overpriced products 
are being pirated. If the software industry really wishes to put the 
pirates out of business, the onus is on them to make their wares 
affordable; to ensure that, wherever in the world they are sold, 
there are adequate demonstration facilities and that buyers are 
assured of fast and efficient locally based support and upgrade 
facilities. Support need not be free of charge. If an expensive 
product does the job for which it was bought, a justly priced 
support contract would not be rejected by any reasonable customer. 
But to expect anyone to commit their money to an untried product 
at an artificially-high price and with no guarantee of help when 
things go wrong is to ensure a long life for the pirates. 

The fact is that the "Pirates" have provided an invaluable 
service, not only to computer users, but to the industry, too. They 
have stepped into the breach when the industry has ignored its 
responsibilities. They have helped some purchasers avoid 
unsuitable software and they have introduced many others 
to products which they have eventually bought through legitimate 
channels. Most important of all, they have helped meet the needs 
of the students who will be tomorrow's decision makers but 
who have been all but ignored by the industry mandarins. 

Finally, those extravagant claims by some sectors of the 
industry about those lost millions. The truth, Gentlemen, is that 
most of the people buying those pirated copies bought them to 
learn, did not want them for real business use, could not have 
afforded the genuine articles and would never have bought them, 
even if they could afford then, having tried the pirated versions. 

(Norman Wingrove/11900203)