Computer in Education (GGGE1155) By: A135741 Chong Xin Txin A135739 Ting Suk Hua

A Report on the Issues of Original Licensed Software and Software Piracy in Malaysia By: Chong Xin Txin & Ting Suk Hua

Moving towards the computer era, the use of technology becomes a necessity and it is inevitable in our everyday lives. As a result, the worldwide use of software increases as well. In fact, software is divided into three major types: original licensed software, open source software and pirated software. In this report, we are going to concentrate more on original licensed software and pirated software in Malaysia context. Software is an immaterial property created by an individual or a company. Hence, laws are implemented in certain countries to protect the owners rights towards the original software they created. It is known as the Intellectual Property Rights (IPRs). For example, the World Trade Organization (WTO) and the World Intellectual Property Organization (WIPO) are international organizations that enforce laws to protect copyrights of original software against pirates. However, due to the different cultures and believes between countries, not all countries agree to oblige to the Western versions of IPRs which are mostly practiced by the First World countries. Countries such as Brazil, China and other Second World countries have tried to oppose the enforcement of foreign IPRs as they consider acknowledging foreign IPRs as being detrimental to their own development (Kai K, Kimppa, 2005). On the other hand, societies in the developing countries, see the need to spread innovations in the society as being more important than granting IPRs (Steidlmeier, 1993; Spinello, 1995). For instance, Malaysia sees the importance for society to override IPR holders' rights in certain situation. Thus, pirated software are allowed in Malaysia to encourage the general use of computer and also for educational purposes in the year 2002 (Weckert and Al-Saggaf, 2003). Even though conflicts exist among countries regarding the issue of IPR, we should respect whatever method that is chosen by the countries.

Computer in Education (GGGE1155) By: A135741 Chong Xin Txin A135739 Ting Suk Hua

However, policy changes with time. Recently, on February 15, 2011 Malaysia has come up with a 2011 Special Report on Copyright Protection and Enforcement for the International Intellectual Property Alliance (IIPA). In other words, our country Malaysia, has risen her concern towards the issue of copyright and piracy with the development of technology. Software piracy has thus, become a popular issue of discussion. Yet, it is a complicated problem for the government to curb. For instance, in 2006, about 61% of the computer software used by Malaysians are pirated software. Malaysia has among the highest piracy rates in the world and has been listed on the United State Trade Representative's watch list. The government is trying to reduce the percentage of pirated software used by implementing different initiatives. Gan and Koh and Van Belle, Macdonald and Wilson suggested that piracy is highest among young people especially of those who are studying in universities (Linda Spark, 2010). These students do not have affordable income to support them with the use of their desired licensed software, yet they often have the knowledge and tools to pirate them. From the survey suggested by Gan and Koh and Van Belle, Macdonald and Wilson, we may therefore place our target on universities' students to carry out our effort to reduce piracy in Malaysia. When considering about the ways to overcome, we will need to understand the reasons why computer users tend to use pirated software rather than the original licensed ones. First of all, original and licensed software are usually expensive. For example, Window 7 Ultimate cost RM655. Even Window 7 Home Basic, which is the cheapest among all, cost a minimum of RM279. This is not a price which is reasonable and affordable for all computer users, especially for young users. Young users such as teenagers and young adults will not be able to afford a few hundreds just to buy an original and licensed software. Unlike original licensed software, pirated software is free. Since pirated software has the same features and functions as original licensed software, computer users think that it is unnecessary to spend a large amount of money on original software.

Computer in Education (GGGE1155) By: A135741 Chong Xin Txin A135739 Ting Suk Hua

Most importantly, pirated software is much easier to obtain when compared to original and licensed software. Pirated software is always available online for free download. It is also available from computer shops when one requests for the reformatting of laptop with pirated software. As long as there is a demand there is always a supply. Hence, in order to encourage Malaysians to use original licensed software, the government may consider subsidizing it. For instance, the government can provide a 5% subsidy on original and licensing software. Not only that, the government has ongoingly cracking down shops which are involve in the sales of pirated software. For example, software and hardware retailers in Low Yat Plaza, KL and Digital Mall, Petaling Jaya no longer sell or install unlicensed software. Another reason is that computer users are not aware of the consequences of using pirated software. Most of the computer users only know that software piracy is a crime in Malaysia. The lack of awareness leads to the ignorance of users, especially students. They have a misconception by believing that it is reasonable to pirate and also legal to make and distribute copies of software. Users do not seem to realize the severity of piracy. For example, Under amended Malaysia Copyright Act 2003, the offenders who found guilty can be fined up to RM 25000 for each copy of illegal software seized and offenders can be jailed for up to 5 years.(Malaysia Copyright Act 1987). In this case, the government could increase the awareness among Malaysians through the emphasis of education on original and licensed software as well as the negative impacts of pirated software towards our nation and society. For example, computer users should be readily informed that installing pirated Window Vista or Window 7 usually causes users files to be corrupted once it is caught by the owner's company. Moreover, the use of original licensed software can be promoted through posters and campaigns around Malaysia. It is also an applicable way for the Ministry of Education to include certain topics regarding original

Computer in Education (GGGE1155) By: A135741 Chong Xin Txin A135739 Ting Suk Hua

and licensing software in the subject English for Science and Technology so that students are expose to these awareness at an earlier age. The study by International Data Corporation (IDC) said that Malaysia could look forward to about new 2,600 jobs, approximately RM2.1 billion in economic growth and RM432 million more in tax revenues when its software piracy was reduced by half in 2011 (The Malaysian Life, 2008). Thus, by reducing software piracy is a way to kill two birds with one stone. The government should update national copyright laws and implement the World Intellectual Property obligation to achieve a desired result. In conclusion, software piracy is a two-sided issue. Certain research indicated that piracy helps in the diffusion of software worldwide, which indirectly supports in the coping of technology for developing countries. It is for the good of the society. However, other research showed a totally contradicting idea. It is said that piracy restrains diffusion and also obstructs the growth of these developing countries as they tend to ignore the ethical value of respect. In our opinion, there is no absolute right or wrong on any side of this issue. It all depends on the views of different individuals. Some creators who are willing to share their software without payments, created open source software, where computer users are free to use, modify as well as modify the software. And because of this, three different software (original licensed software, open source software and pirated software) exist at the same time. Last but not least, regardless of the choices made by individuals, we have to respect them.

References: Journal Articles from UKM subscription research databases

Computer in Education (GGGE1155) By: A135741 Chong Xin Txin A135739 Ting Suk Hua

Kimppa, K. K. (2005). Socially Responsible International Intellectual Property Rights in Software and Other Digitally Distribute Material. IFIP International Federation for Information Processing, 2006, Volume 195, The Information Society: Emerging Landscapes, pg. 37-50. Spark, L. (2010). The Demographic Factors Affecting University Students' Intention to Pirate Software. IFIP Advances in Information and Communication Technology Volume 328, 2010, pg. 22-32.

Google Scholar Gantz, J. F., Christiansen, C. A., Gillen, A. (October 2006). White Paper: The Risks of Obtaining and Using Pirated Software. Retrieved on July 17, 2011 from http://www.teksys.co.uk/teksys/events/IDCROCWhitepaper.pdf Google Books Rosen, L. (2005). Open Source Licensing: Software Freedom and Intellectual Property Law. Journal of High Technology Law. Retrieved on July 17, 2011 from http://books.google.com.my/books?id=HGokAQAAIAAJ&q=Open+Source+Licensing: +Software+Freedom+and+Intellectual+Property+Law+By+Lawrence+Rosen&dq=Open+Sour ce+Licensing: +Software+Freedom+and+Intellectual+Property+Law+By+Lawrence+Rosen&hl=en&ei=MjMs ToTtGcWHrAe856myDQ&sa=X&oi=book_result&ct=result&resnum=1&ved=0CCoQ6AEwAA

Google Search Malaysia Copyright Act 1987. (n.d.). Retrieved on July 18, 2011 from. http://www.wipo.int/wipolex/en/details.jsp?id=7603 Maayongiligan: Stop Using Pirated Software. (May, 2011). Retrieved on July 17, 2011 from http://www.maayongiligan.com/2011/05/stop-using-pirated-software/

Computer in Education (GGGE1155) By: A135741 Chong Xin Txin A135739 Ting Suk Hua

LiewCF Tech Blog: No Pirated Software in Low Yat Plaza. (March, 2007). Retrieved on July 18, 2011 from http://www.liewcf.com/no-pirated-software-in-low-yat-plaza-2827/ Managing Intellectual Property: Malaysia To Use Pirated Software In Schools. http://www.managingip.com/Article/1326885/Malaysia-to-use-pirated-software-in-schools.html The Malaysian Life: No More Pirated Software. (February 15, 2008). Retrieved on July 18, 2011 from http://themalaysianlife.blogspot.com/2008/02/no-more-pirated-software.html