Johannesburg, 23 Jun 2011
Global software giant Microsoft is intensifying its crackdown on fake software and will haul more offenders to the courts.
The local arm of the US-based company says it is finding a lot of shipments of counterfeit software coming into SA.
Microsoft SA's anti-piracy lead, Charl Everton, says piracy is a growth inhibitor for SA's local IT industry, as fake software is sold at a price that undercuts the genuine channel.
Fake software is also a risk to consumers who lose money on pirated software and face data destruction when the software is loaded with Trojans, but have no recourse to the vendor, she says.
Dale Waterman, Microsoft's corporate attorney for anti-piracy for Middle East and Africa, says each year, thousands of South African consumers and businesses are affected by counterfeit software, which they acquired unwittingly.
“Consumers are coming to us daily with complaints about counterfeit software and they want industry and government to stand up and take action. Our commitment is to do everything we can to help our customers and protect our legitimate partners,” says Waterman.
The Department Trade and Industry (DTI) has said the total value of counterfeit goods seized in the last financial year amounted to more than R696 million.
Cracking down
Microsoft SA initiated 27 channel enforcement actions across the country in the past year in a bid to cut down on fake software.
These activities include raids by the South African Police Service (SAPS) and the DTI as well as civil law suits, some of which are settled out of court, says Everton.
Recently, one of its raids and a two-year-long investigation resulted in the conviction of computer shop manager Vikesh Singh. The Specialised Commercial Crime Court in Port Elizabeth found Singh guilty of selling pirated software on 15 June.
Singh was ordered to pay R150 000 in compensation to Microsoft as well as compensate four customers who had bought the fake software, by paying them back three times the value of the pirated products.
He was also sentenced to a fine of R80 000, or six years' imprisonment conditionally suspended for five years, says Microsoft.
Microsoft says Singh breached the Counterfeit Goods and Copyright Acts. His court appearance followed raids on his two companies - PE Technologies in Port Elizabeth and Vision Technologies in Johannesburg.
Everton says during the first raid in August 2008 alone, SAPS seized 146 copies of fake Office Suite and Windows operating system discs worth R3.2 million. Based on consumer complaints, she says, “it would seem that a significant amount of counterfeit software was supplied to customers in addition to what was seized”.
Microsoft aims to protect its consumers and the channel, says Everton. The organisation has a multi-pronged approach to fighting piracy, she adds.
Its approach includes helping government increase its capacity to stop shipments of pirated software, consumer education, and mystery shoppers that do between 400 and 650 visits a year.
Everton says: “What we need to do in SA is to lead by example when using original products and, while policies are in place, we need to play a strong role in supporting enforcement bodies to bring the culprits to justice.”
Marius Haman, Bowman Gilfillan Attorneys' head of anti-counterfeiting, says increasing partnerships between the public and private sector is crucial to the success of combating software piracy and counterfeiting in general in SA.
He says government, through law enforcement channels like SAPS' Commercial Crime Unit and the Specialised Commercial Crime Court, can lead by example and be one of the most effective mechanisms for sending a strong and clear message that the government will not tolerate counterfeiting and piracy in SA.
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