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New Delhi:
The Delhi High Court continues to remain tough on the issues of
software piracy in the country. In their efforts to create an
effective deterrence in companies and organizations using pirated or
unlicensed software, the court fined a company Rs.10 lakh as
compensatory and punitive damages to the software copyright holders
for using pirated software for commercial purposes without adequate
genuine licenses. The plaintiffs in the case were Adobe and
Microsoft.
While several judgments for damages have been passed against illegal
hard-disk loading by the Delhi High Court, this is the first ever
judgment on damages against a corporate end-user company. While
granting the order, the court cited the famous judgment of Time
Incorporated v/s Lokesh Srivastava, 2005 (30) PTC 3 (Del), which
expressed a need for the courts to get tough on the issues of piracy
and counterfeiting.
In that case, the court said, "This court has no hesitation in
saying that the time has come when the courts dealing with actions
for infringement of trademark, copyrights and patents, should not
only grant compensatory damages but award punitive damages also with
a view to discourage and dishearten law breakers who indulge in
violations with impunity out of lust for money so that they realize
that in case they are caught, they would be liable not only to
reimburse the aggrieved party but would be liable to pay punitive
damages also, which may spell financial disaster for them."
According to BSA estimates, from the approximately 45-50 end-user
civil actions initiated jointly by its member companies from January
2008 onwards against companies and organizations using pirated
software in India, the approximate value of pirated software found
in these companies could be valued at Rs.85,78,30,000. This figure
of loss would be much higher, if it had also taken into account
cases, where member companies had independently pursued civil action
against end-user companies.
As per 2008 IDC-BSA Global Software Piracy Study, the India software
piracy rate stood at high 68 percent and the revenue losses
attributed to software piracy in India in that year was estimated at
$2.7 billion.
The piracy rate in India has decreased at a slow place - by six
percentage points over a period of five years. Around 68 percent of
packaged software on PCs were pirated in 2008 in India, amounting to
huge revenue and job losses to the domestic software industry.
According to an economic impact study of software piracy conducted
and published by IDC in 2008, in India, reducing software piracy by
10 percentage points over a four-year period could generate an
additional 43,000 new jobs, $3.1 billion in economic growth, and
$200 million in Government tax revenues. There was further potential
good news for local vendors, where the study also predicted an
additional $2.7 billion in revenues to local vendors alone.
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