Potential options software vendors can consider in order to curb usage of unlicensed software
Software vendors can consider alternative options to curb the usage of unlicensed software.
The overarching principle to adopt would be to focus on the further strengthening of software IPR protection. However, non-legislative approaches should be considered as well.
Strengthening software IPR protection
The first step towards experiencing the economic and intangible benefits from further strengthening software IPR protection would be to determine the ways in which unlicensed software usage rates can be additionally reduced in China.
- Existing software-related IPR regulations
There is room for enhancement of certain existing software-related IPR regulations. For example, stiffer penalties can be introduced for breaching software-related IPR regulations, particularly for segments in which unlicensed software usage is more prevalent.
- Standardized legal and judicial processes across provincial courts
Due to the fairly recent implementation of IPR regulations in China, provincial governments and courts may face challenges in dealing with software IPR cases because of insufficient precedence.
Consistency across legal and judicial processes is important throughout the provincial courts. Guidelines or standardized processes can be put into place so as to deal with potential software IPR cases in the provincial courts.
- Further emphasis on enforcement
Enforcement requires significant resources and costs; hence, given the size of China and level of unlicensed software usage, responsibility to ensure and undertake enforcement can be placed wider than with the central and provincial governments.
As has been seen over the last few years, governmental agencies in China can continue to work closely with software associations or software vendors in order to further enforcement.
- Further social awareness of the consequences of using unlicensed software
Options can be explored to increase the social awareness of the disadvantages of utilizing unlicensed software. This can take several forms such as education in schools, corporate environments and official retail outlets.
In order to reach out to the younger generation, awareness messages and campaigns can be made available on new media outlets frequented by the youth such as blogs, videos and social networks. Example could include:
‧Offering a reward for tip-offs leading to the successful prosecution of software IPR offenders
‧Increasing the public profile of the consumer associations to bring across the message of how the continued usage of unlicensed software affects software vendors
Alternative business models for software licensing
Potential options software vendors
can consider in order to curb usage
of unlicensed software
Improving software IPR protection cannot be thought of as the sole option to reduce the usage of unlicensed software. Software vendors doing business in China may want to consider exploring alternative business models for software licensing.
Unlicensed software usage would naturally follow in countries with low disposable incomes as a proportion of consumers continue to use unlicensed software on the basis that licensed software is out of their budget. This results in countries with low disposable incomes displaying a tendency towards higher unlicensed software usage rates.
Admittedly, it is challenging for software vendors to introduce separate pricing structures for different markets, while at the same time ensuring that parallel imports do not cannibalize sales in the more developed markets.
However, re-evaluating the way of thinking towards the existing software licensing model could prove beneficial for some software vendors.
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