Call for toughening of software piracy laws

By Keith Newman

Our relaxed stance on parallel importing has directly increased the amount of illegally copied games software entering the country and forced distributors to begin policing their own territory.

"We want to protect our local business from revenues moving offshore. We believe the legislation is having a direct affect on the increase in piracy of interactive software in New Zealand," said Interactive Software Association president Mike Wynands.

He said the industry was forced to accept the new rules but Isanz was disappointed the Government had not beefed up Police and Customs resources to combat local and international piracy.

He said the law change to allow parallel importing in May last year had made the industry more competitive, however, failing to get product to market in time meant intellectual property "was bastardised" by Asian imports.

An independent report by Isanz released last week uncovered a potential $30 million loss to retailers and distributors and suggested New Zealanders also had an attitude problem.

"Consumers consider parallel importation and piracy as similar activities, and although it is illegal, there's a sense it won't hurt big companies," said Mr Wynands.

He said Police resources were limited or unavailable to assist in any pirating activity and Customs was unable to control or actively monitor illegal product arriving in New Zealand.

Mr Wynands described Isanz efforts to uncover piracy to date as "a quick brush stroke".

The association, which includes 10 software and hardware distribution companies as members, now intends to get serious. It is putting together a business plan to educate young people about piracy and will launch an 0800 number for intelligence purposes with an approach similar to Microsoft's "dob in your mate" programme which offered a reward for information.

"We'll do whatever is effective," he said, including lobbying the Government in partnership with the New Zealand Society for Computers and The Law and working with Customs to try and identify, monitor and police illegal products.

Isanz members will register their brands with Customs and ask them to identify any area company or country which may be suspect so deliveries can be traced and trends monitored.

Mr Wynands was particularly concerned at raising awareness in the retail channel to watch out for possible misuse of recordable CD-ROM disks.

"The number of blank CD-ROM disks being sold on a monthly basis is staggering. I agree a lot may be for commercial purposes but there's certainly a lot going into illegal purposes as well," he said.

Mr Wynands said his company, Electronic Arts, for example was now using electronic encryption in its newer PC games but this only eliminated low-level counterfeiting. Serious counterfeiters in Asia for example, where 11 of every 12 games sold were pirated, employed full-time code-breakers.

Meanwhile tougher penalties, including long-term prison sentences are being considered as part of a review of intellectual property rights by the Ministry of Commerce.