Malaysian price controls leave back door open

14 Jul 2003 13:32

Any home user would legally be able to take advantage of proposed software price controls in Malaysia

Malaysia's proposed price controls on computer programs could open a door for users in neighbouring Singapore and Thailand to obtain lower-priced original software -- legally.

Currently, Singaporeans throng the malls of Johor Bahru, the closest Malaysian state, to stock up on cheaper groceries. Their shopping carts could be loaded with software, music and movie discs if authorities succeed in forcing industry players to lower the prices of their wares, say industry players.

According to software makers CNETAsia spoke to, it is perfectly legal for consumers to buy licensed software from abroad for use in their home countries.

Microsoft Malaysia spokeswoman Sheila Jaya Poomy said home users can do this when buying full packaged or off-the-shelf Microsoft products. Business buyers are out of luck, however.

"We do not allow this (type of use) for Open License agreements for businesses because support and services for the products are granted in the specific geography from which the agreement with the business was made," she added.

Roland Chan, regional marketing manager for anti-piracy group Business Software Alliance (BSA) Asia-Pacific, urged users to pay close attention to the license agreements to ensure they do not cross any legal boundaries.

"When purchasing software, always check the terms and conditions of sale which are always clearly stipulated. In most cases, a restriction may be placed so that the entitlement to local technical support, warranties and upgrades is only guaranteed within the geographic boundaries," he cautioned.

Like most industry players, both Microsoft and BSA are not in favour of the Malaysia's plan to use price controls to stem piracy. Last month, authorities announced plans to place software, CDs, DVDs and Video CDs (VCD) under the same price regulations that govern food and essential items such as oil and rice.

Organisations like the Recording Industry Association of Malaysia (RIM) and BSA have since been given a two-week deadline to suggest other ways to regulate the pricing of their members' products.

"We are concerned about the government's recent announcements on price controls for software as a means to control piracy in the country. We are seeking a meeting with the ministry, together with industry associations, to forward some alternatives to this approach," said Microsoft's Poomy.

"We can never compete with pirates on price. Software piracy is not about price alone. Even the lowest-price software -- games, utilities -- are pirated. Sometimes even free software is pirated and sold," she argued.

The view is also shared by BSA, which firmly believes education is a better way to rid Malaysia of the piracy plague.

"The BSA believes that the best way to combat software piracy is to effect long-term change by continuously educating businesses that they have to respect intellectual property by using only legal software within their organisation," Ajay Advani, chair of BSA Malaysia told CNETAsia in a previous interview.

"It is by changing mindsets that we achieve the most lasting change. People have to understand that morally and ethically it is wrong to use pirated software," he said. The BSA's members include software giants such as Adobe and Microsoft.

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