Internet unlicensed usage is expected to become the leading form of software IPR infringements in China.

Internet download and software counterfeiting are the most common forms of software IPR infringements found in China.

Types of software IPR infringement

• End-user
  An individual reproduces or utilizes unauthorized copies of software.
  
  
• Client-server overuse
  The number of users who are utilizing a central copy of a software (on a network server) exceeds the number of users allowed by the software license.
  
  
• Internet download
  Software is (typically freely) downloaded from the Internet, instead of being purchased from legal, authorized channels (be it from online or brick-and-mortar channels).
  
  
• Mis-licensing
  A company purchases licensed software updates without the required software basis.
  
  
• Under-licensing
  A company purchases and maintains fewer than the required number of licenses.
  
  
• Mis-versioning
  A company uses the incorrect version of a software program.
  
  
• Hard-disk loading
  A business that sells new computers installs unlicensed copies of software onto the hard disks, in order to increase the appeal of the computers being sold.
  
  
• Software counterfeiting
  There is an illegal duplication and sale of copyrighted software, with the intention of producing a direct imitation.
  
  
• OEM unbundling
  Software that was intended to be bundled with specific accompanying hardware is sold as a standalone product.
  
  
• Renting
  There is unauthorized selling of software for the purposes of temporary use.
  
  

In general, internet download and software counterfeiting are the most common forms of software IPR infringements found in China.

With the proliferation of download sites hosting unlicensed software, the anticipated increase in internet access speeds and the increase in the number of internet users in China, internet unlicensed usage is expected to become the leading form.

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Contacts

• Joe Tsang 
  Managing Partner, China North and Asia-Pacific Technology Leader


• Steve Lo 
  Asia-Pacific Telecom Leader and Greater China TCE Advisory Leader


• Edward Chang
  Partner, Advisory Services