Piracy leads to job losses

By Alex Kayle, Senior portals journalist

Johannesburg, 23 Nov 2009

Software piracy and counterfeit goods cause job losses as well as a reduction in innovation.

So says Ambassador Donald Gips, from the US Embassy, who served as an official in the Obama campaign and as a policy advisor to Al Gore.

Speaking during the Intellectual Property Rights conference, held in Fourways last week, Gips pointed out that government, business and civil society must work together to combat piracy.

“The establishment of the commercial courts; the intellectual property rights development training of investigators, magistrates and judges; recognising and dealing with counterfeit goods; all of these factors have led to the robust regulatory environment, making SA a model for both the developing and developed countries,” said Gips.

Little respect

Gips claimed copyright laws are a key ingredient in driving innovation and improving job creation. However, he noted that one of SA's major challenges is to develop affordable and accessible broadband access for all. He added that the country's high telecoms prices were creating a bottleneck in terms of local development.

“Any country that fails to challenge itself continuously will fall behind in the global competitive economy of the future. And this is one of the most critical debates facing SA.”

He added that developing countries generally have a low level of intellectual property respect. A common trend is illicitly pirating software from richer countries and freely using the technology.

Curbing piracy

“Intellectual property rights is a true balancing act that allows for innovation in the economy, yet protects workers and allows capital to flow freely and protects innovation,” noted Gips.

“Putting in place a system early encourages innovation and companies to come to a country where they know their intellectual property is critical to growth.”

According to a 2008 IDC study, sponsored by the Business Software Alliance, a 10-point reduction in PC software piracy would deliver more than 1 200 new jobs, $70 million (R525 million) in tax revenues, and nearly $900 million (R7 billion) in economic growth to SA.