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Roland Chan (RC): The commercial value of unlicensed software in Thailand is 28.5 billion THB according to the 2013 Global Software Survey. This is an increase from 26 billion Thai baht in 2011. It should be noted that although the rate of illegal software in Thailand fell by one percentage point, the commercial value of unlicensed software increased because of the number of PCs in Thailand increased.
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RC: Lack of oversight by enterprise management is one of the main reasons for Thailand’s relatively high rate of unlicensed software. If more business leaders prioritized compliance for their company, then we would see increased use of licensed software. Too often, business leaders get involved in their company’s software license management after they are already experiencing problems related to unlicensed software – such as legal problems with the police, issues with malware or buyers who have supply chain concerns. A proactive approach to managing these issues would obviously prevent problems.
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It would benefit Thai enterprises to have written policies about the use of licensed software. Our survey shows that 58 percent of Thai IT managers report an informal policy in place about licensed software. But more Thai companies need to have formal, written policies to help guide their employees use of software. Sometimes employees my install unlicensed software on their PC at work – but this is clearly illegal. A formal, written policy would help to avoid this situation.
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RC: If we look at the history of this study over the last decade we will see that the use of illegal software has decreased by 9 percentage points, falling from 80 percent in 2003 to 71 percent in the study launched last month. This is an improvement – albeit Thailand remains behind the regional Asia Pacific average of 62 percent. To continue on the path toward lower rates of illegal software in Thailand will require the continued support of the Thai government. In recent years, the Department of Intellectual Property has supported educational campaigns for the respect of intellectual property rights. The ECD police have proactively educated the Thai business community about the use of legal software and when required enforced Thai laws regarding use of legal software. We need these actions to continue. We also need the private sector trade associations to help educate their member communities about using legal software. The BSA will continue doing all it can to work in partnership with the public sector and private sector to help Thai business leaders understand the threats of illegal software. It is also up to business leaders in Thailand to recognize the risks they face and to address these risks by insisting on the use of legal software. For example, cyber-crime is a massive risk. PCs that are purchased with illegal software loaded onto the hard drive have a greater than 60 percent chance of being infected with malware. This is a serious risk to business security. Anyone buying a PC loaded with illegal software in one of Thailand’s red zones is facing serious risks for cyber theft.
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RC: Yes, and I think there are a number of factors that are contributing to the reduction of illegal software use in Thailand. The ECD police have made contributions through their efforts to educate people about the risks of using illegal software. The Department of Intellectual Property made 2013 the Year of IP Protection. This contributed to raising awareness about the importance of using legal software. I also think people are becoming more aware about all of the legal, trade and security risks associated with illegal software. The fact is that if people comply with Thai copyright laws, then risks will be reduced. And we really cannot emphasize enough the risks of cybercrime linked directly to the use of illegal software.
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RC: Education is really important. Helping business leaders understand not only the security, legal and trade risks of illegal software – but also the benefits of legal software is a very important part of the equation. The reality is that too often business leaders do not pay attention to software management until it is too late. Education can help to encourage these business leaders to proactively embrace Software Asset Management. It is also important to have enforcement of the law. For example, Thai Software Enterprises is a long-term member of the BSA. They are a member because they have serious problems with people using illegal copies of their products instead of licensed versions. Thai Software Enterprise products are just several hundred baht per license – yet they suffer from high rates of illegal use. A solution to this problem is to enforce the Thai laws, and to protect innovators such as Thai Software Enterprises from illegal use of their products.
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RC: Yes, Thailand is making progress in reducing use of illegal software. Over the last 10 years, Thailand has made steady progress, and this is thanks to support of the government for enforcing the laws and private sector companies that have embraced management of their software. I also think that Thailand can strive to do more. The regional average in Asia Pacific is 62 percent. It would be a strong goal for Thailand to align its plans to drive the country’s current rate of 71 percent downward, into line with the regional average. By doing this Thailand would benefit from greater compliance with Thai laws, the economy would benefit from growth, tax revenue from legal software would grow and Thailand’s cyber security would benefit. It is important to keep in mind that there are many connections between compliance with Thai laws that regulate legal software and reputational, trade and economic benefits for the country.
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