Pob stage 1 seminar 16 sbd

Seminar: Software Piracy in China – A Big Issue

Topic Number: 16

Principles of Business

Overview

It was estimated that software piracy in China was as high as 92% in 2003 with many blaming a lack of government intervention and enforcement of IP law. Although, today the figures for software piracy have reduced it remains a significant issue for companies, regulators and consumers.

Recently, the Chinese government have committed to clamping down on piracy and are working with international organisations to be able to implement a robust framework to do so.

In this seminar, we will explore the issue of software piracy in China, diagnosing the key issues and develop a host of solutions in this area. We will also look at whether there is any justification why piracy should in fact exist from a moral and ethical standpoint weighing up the commercial losses to organisations.

Finally, we will look at the different types of IP available to UK companies and their applicability internationally.

3

Learning outcomes of this seminar

• Be able to analyse and describe the extent of the software piracy issue in China

• Critically evaluate the rationale for software piracy and express views on whether it is justifiable

• Diagnose and articulate ways in which organisations can tackle software piracy

• Highlight the different IP approaches in the UK and their applicability internationally

Agenda for this seminar

Explain the various ways organisations can tackle software piracy

Explain to a UK company the difference between a patent, copyright and trademark. Are they enforceable in China?

Is software piracy justifiable?

Explain the extent of the software piracy issue in China

Structure for the session

You will have 15 minutes to

discuss each question

We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area

Feel free to ask questions but please do not have separate conversations ‘we are all in

this together’!

Software piracy in China

China is the total flip-side of the U.S.  Piracy goes back to the

China world view that individual rights don’t matter.  The courts have never evolved to protect innovative individuals. There is still very much the ethos that economic growth has to be managed, so individual and

intellectual property, where the spoils go to one entity or one person, is not a cultural valueTom Doctoroff

Explain the extent of the software piracy

issue in China

How bad is the issue? China’s software piracy rate fell to a new low

from…

92% in

2003

77% in

2011

Global software piracy is 42% worldwide

TO

How much is the industry worth in China?

$9bn in

2011

$3bnin

2011

Illegal software market

Legal software market

How often is illegal software purchased?

3% 15% 23% 36%23%

Always Mostly Occasionally Rarely Never

Source: http://globalstudy.bsa.org/2011/downloads/opinionsurvey/survey_china.pdf

Situation improving?

The report was published one day before a Chinese court handed out the severest penalty ever for an intellectual property crime in the territory. On Wednesday, a Beijing intermediate court upheld a lower court's decision that sentenced counterfeiter Shang Yajun to seven years and six months imprisonment, for copyright infringement and the sale of illegally manufactured registered trademarks.

In July 2011, the police confiscated more than 360,000 partially completed certificates of authenticity worth nearly $80 million at Shang's manufacturing base. About 4,400 OEM products for Dell, HP and Lenovo, including Simplified Chinese and English-language versions of Windows XP Professional and Windows 7, were also confiscated during the raid.

Is software piracy justifiable?

A rationale for piracy?

View video: http://www.youtube.com/watch?v=OQCLCpyM_rM

Is Piracy damaging?

View video: http://www.youtube.com/watch?v=MY8CK2DGbWQ

Explain the various ways organisations can tackle software

piracy

China changing its ways

View video: http://www.youtube.com/watch?v=vUNvIs919K0

A new government stance Chinese government officials agreed to crack down on software and other piracy and to take steps to ensure that state-owned organizations use legal software.

China agreed to implement software management systems to promote the use of legal software by state-owned enterprises, and the country’s negotiators promised to take action against Internet piracy and trade secret theft, said the BSA, a software trade group.Jodie Kelley, BSA’s general counsel and senior vice president of antipiracy, said in a statement. “Adopting them as common practice would go a long way toward curbing software piracy among state-owned enterprises, and it would send a powerful signal to China’s private sector.”

Tackling the issue: A new defense?

http://readwrite.com/2014/03/17/microsoft-anti-piracy-strategy-china

Targeting piracy through marketing

View video: http://www.youtube.com/watch?v=SS1Y3JuVjzM

Turning Piracy into Legitimacy

View video: http://thehill.com/policy/technology/194037-us-presses-china-on-rampant-online-piracy

Explain to a UK company the

difference between a patent, copyright and trademark. Are they

enforceable in China?

Copyright

Copyright protects:• original literary and written

work, like novels or content on websites

• original dramatic, musical and artistic works

• television, film, sound and music recordings

• computer software• illustration and photography• typographical arrangement

of published editions

Your work must physically exist - you can’t get copyright protection on an idea.

How long copyright lastsCopyright in the UK lasts for different lengths of time depending on the type of work:• literary, dramatic or artistic

work or film lasts for the creator’s life and 70 years after the creator dies

• broadcast lasts for 50 years from the date it was first broadcast

• sound or music recording lasts for 70 years from the date it was first published

Patents

Your invention has to be:• new• inventive - not just an

obvious modification to something that already exists

• something that can be made or used

You can’t patent:• literary, dramatic, musical

or artistic works• schemes, rules or methods -

including medical treatment methods

• anything that’s solely an idea - eg a way of thinking, a scientific or mathematical discovery

How long a patent lasts:

A patent can last for 20 years from the date you apply for it. After you’ve held a patent for 4 years, you must pay to renew it every year if you want to keep it.

Overseas patents:

A patent only protects your invention in the country where the patent is registered.

Trademarks• A trade mark is a something

that makes your brand recognisable, eg a logo or a sound.

• Registering a trade mark lets you stop other people from using it without your permission.

• A trade mark registration lasts 10 years and is only valid in the country of registration. You can renew it every 10 years.

• Company and domain names• Company names and domain

names aren’t automatically trade marks. You register:

• company names with Companies House

• domain names with domain name registrars

• Once you’ve done that, you may be able to register company or domain names as trade marks.

If you want to use your trade mark in countries other than the United Kingdom, you can apply directly to the Trade mark Office in

each country.You can use a single application system to apply for an

International trade mark (for certain countries throughout the world), or a Community trade mark (for protection in Europe).

End of Seminar

Note: This recording is for your personal use only and not for further distribution or wider review.

© Pearson College 2013