Software piracy in Asia III

IN THE FIRST AND SECOND of this report, we investigated the prevalence of software piracy in East and South East Asia. We conclude with the final part, covering Singapore and Malaysia and look at the overall picture of counterfeiting. We've had a large mail bag on this topic - in the next few days we'll publish a selection of the letters we've received. µ

Part One China and Hong Kong
Part Two Thailand and Cambodia

Singapore
Given its squeaky-clean image it's hard to believe that Singapore has a thriving counterfeit software industry. At one time the area around Bugis Street was the place to buy counterfeit software, pirated music cassettes and CD's and in the evenings it was the area frequented by sometimes stunningly attractive "lady-boys" (male transvestites).

However a couple of years ago the Singapore authorities decided to clean up the area, this meant the transvestites had to move elsewhere and with no tourists to ogle the nightly parade of "lady-boys" there were lean pickings for the local counterfeiter stall owners.

In consequence the counterfeiters went semi-legit and they set up shops in one of the many new Singaporean shopping malls, including Sim Lim Square, Singapore's main HiFi and Computer Centre in Rochor Canal Road. Visiting Sim Lim square Electronics Centre last year, shops selling counterfeit software were flourishing; this year however they were prominent by their absence.

Recent police action has closed many of the shops selling pirated goods, but the enterprising Singaporean Chinese counterfeit software traders are not deterred for long by such action, they revert to their traditional trading roots and can now be found selling software from stalls in the Ang Mo Kio and Bedok North areas of Singapore.

Despite a number of police raids in October 2001, when we visited a month later in November, stalls in Bedok were openly selling the usual wide selection of modern pirated software including Microsoft's Windows XP operating system for S$5 (Home edition) and S$10 (Professional version). For the enterprising traveller prepared to bargain it's possible to improve on these prices.

So if in Singapore for a holiday or stop-over and wanting rock bottom price software, head out to Bedok, and while you're there kill two birds with one stone, because Bedok is about the best place in Singapore for traditional Chinese sidewalk eating.

The restaurants in the area are renowned for the quality, variety and cheapness of their cuisine and are the sort of places frequented by the locals and as such are highly recommended.

Malaysia
Selling counterfeit software is big business in Malaysia, especially in Kuala Lumpur. The country has a high PC ownership with plenty of people who only earn the equivalent of £300 per month buying clone PCs from £250; so expecting customers to pay up to a month's wages for legitimate software is just asking too much.

In consequence there is a huge market for the pirates and as the government has had little success at getting the software giants to offer any sort of discount to reflect the local cost of ownership, counterfeited software is the norm, so much so that it is now hard to buy the real thing in Malaysia. Most games are available and a surprising amount of modern professional software.

The main site selling software in KL is Imbi Plaza, a shopping mall devoted to computer hardware and software, this is just behind the main shopping malls and any taxi-driver will know where it is.

At the instigation of Microsoft and the Business Software Alliance (BSA), crackdowns and raids by the authorities on counterfeit software being sold in the Plaza are a regular occurrence, but the shops get tip offs, a few CDs get seized and the papers report the raids, but it is really only Microsoft, Adobe and AutoCad products that seem to get protection from the authorities, counterfeit games and other software programs don't seem to be of much concern to them.

Talking to an ex-pat resident in KL he said these raids tend to be one-day wonders, with shops openly selling counterfeit software again a few days later. He added that the industry in Malaysia (Microsoft in particular) tends to go on about counterfeit software being riddled with bugs and viruses.

But he said: "Despite what the industry says, here in Kuala Lumpur nobody I know has ever seen a pirate CD with a virus, bug ridden maybe, but Microsoft probably know more about bug-ridden software than most."

Malaysian prices for counterfeit software are RM5 (£1) to RM10 (£2) per CD. He also commented that counterfeit non-activation copies of Windows XP were on sale in Kuala Lumpur on 25th October, Windows XP launch day and is still on sale.

A wide selection of software can be found in other places around Kuala Lumpur, in particular from the Sungei Wang mall, MidValley Megamall and Ampang Park mall, all are good.

The future of the counterfeiting trade
What is the future of the counterfeiting trade? The demand for these goods by business and consumers will continue while they are still available.

China, the world's capital of counterfeiting, is now a member of the World Trade Organisation and has promised to take action to protect intellectual property. However, countries such as Cambodia and Thailand who are not members of the WTO, rely on the income generated through counterfeit trade, but is supplied by China. It is inevitable that if China is able and willing to come down hard on the counterfeiters, they will simply move their operations into neighbouring countries.

Interestingly enough, in recent years record companies such as Sony and Warner Bros appeared to come to a truce with the counterfeiters. Many moons ago, before CDs, there were audio cassettes and they were the fake of choice for the average bargain hunter in Bangkok.

After years of observing the selling of acceptable, but poor quality fakes, the record companies decided to allow the traders to source genuine stock and sell them at greatly reduced prices to visitors. In this way the record companies made a little money out of the business and were able to regulate the arrival of new releases into the market. Could this be a way forward for the software industry? Co-operation rather than conflict?

For the tourist passing through these glamorous destinations, whether you support the trade is a matter for your own conscience. Pirated software is readily available in these countries. If you can live with the fact that you are denying a multi-billion dollar US company of their well earned profits then these exotic markets provide a fantastic opportunity for you to save hundreds of pounds. Who knows, with one in four pieces of software currently sold being fake, are you sure that you are not already part of the problem?

Bon voyage. µ