Ministry punishes firms over use of counterfeit software

About 40 private establishments and retail outlets have been sanctioned for using or selling counterfeit software, said an official source at the Ministry of Culture and Information. Fines reached SR 100,000 in some cases and some companies were closed temporarily until they rectify their situation. “The total number of cases adds up to about 150 so far,” sources told a local newspaper. The lawyers of software companies filed the cases, saying the companies breached the copyright regulation that was implemented to protect intellectual property and computer programs. Working on curbing the trafficking of counterfeit software, the ministry designated specialized officials to carry out field inspections at business establishments, warehouses and games retail outlets. These inspectors have the jurisdiction to seize evidence. According to a Business Software Alliance (BSA) study, the rate of software pirating in the Middle East and Africa reached 50 percent in 2011. The commercial value of unlicensed programs amounted to about $ 4.2 million (SR 15.75 million). The rate of pirating software in emerging markets reached about 68 percent. Emerging markets have the largest portion of the global increase in the commercial value of counterfeit program, the report showed. Another source said there is a consensus among private and government parties on pursuing those who illegally copy software, films and other copyright protected materials, as this causes large losses for the economy. Specialists at the software industry say punishments against those involved in copying and selling counterfeit programs must be severe and include imprisonment and naming and shaming. Trading in copied copyrighted intellectual property is a crime for which perpetrators are pursued in almost all countries to curb the phenomenon’s spread in global markets. A representative of BSA and lawyer of the plaintiff companies Muhammad Al-Dhabaan said the copying of original software products is increasing through a number of websites. The relevant authorities and BSA officials who monitor the local market detected these sites. Al-Dhabaan said about 100 violations had been detected. When the BSA team finds a company using counterfeit software, they are requested to use original software. If a company would not comply, they would be reported to authorities.

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