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  • Saturday, January 28, 2006

    Software Piracy

    Claims have been abundant that piracy, that is software or simply those cd’s sold in flea markets, takes away millions of dollars from the government in terms of taxes and for the industry, their voluptuous income.

    There are advocates for the intellectual property rights law and there are those who are happy we have pirated software. Who are these men? The first group are paid by companies who charged exorbitantly high fees for original products and the second group, the simple consumers who just want to have a thing out of their meagre budget.

    The first group charged high prices because they seem to overrate the people who made these softwares. They want to give the best compensation to their employees and they spent billions on research. In using these reasons, companies take in more. They are always on the comfort of their costumers. Comfort here will mean a very expensive one.

    The second group are the users who are at the pity of these companies. They are the ones charged because of using pirated software. Yet these are the ones who make the economy float. These are the small enterprises.

    The government is always saying that it is the micro-economy that provides employment, be it in small incomes, to the masses. Enterpreneurship is encouraged because it makes the country liquid in terms of cash flow.

    Big companies can spend millions to purchase high-priced original softwares while low profile entrepreneurs can only afford the pirated ones. Why? Because big companies can pass on their cost to the consumers and consider it investments and when you say investment, there should be a ten-fold increase when time comes. The poor entrepreneur cannot, in any way pass, on things to his consumer or else he will be charging too high considering the market that he caters. And yet these are the people in which the government lean on.

    Yes, in other countries, like Singapore or Japan, they seldom buy pirated ones, even for individual users. This is because their state of economy is far above ours. There entrepreneurs can afford to purchase and redistribute the price because the people can afford. Advocates always emulate other prosperous nation which is still a faded view in front of the Philippines. And yet they seem to be blind in terms of how much can the people afford here in the Philippines compared to the other nations.

    Look at these technology companies. Yearly, they have an increase in sales and revenues. All these money which rings at their cash registers come from the consumers, it is at the expense of the people whom they want to serve best and fair. Is it fair for them to rake in billions by adjusting prices so that they will gain more all for the pain of their dear consumers? Can they just lower their projected net income or maybe just maintain it? They are having great bonuses at a time when piracy is high. Piracy is high and they are still raking in millions!!! That is how cruel they are and how arrogant they are in pricing their goods.

    Sometimes I feel pirates are heaven sent. They provide these technology companies a look at the ground where they stood at. What will happen when there will be no more pirates? Prices of softwares can reach enormously high. And who gains the most? Them. The government can only take in a small portion in terms of taxes and will go straight to the pocket of these big-mouthed crocodile corrupt officials. The big bulk goes to their coffers at the expense of the trapped consumers. And when these happen, entrepreneurship will die. And when entrepreneurship dies, where can the government go?

    I am not against protecting intellectual property. But it should not be overrated. And there should be a time frame on how long could an idea be protected. The world is evolving and so is intelligence. Have an idea and keep it to yourself and after sometime you’ll find that another person has come up with the same. I hope whoever coined the term intellectual property can explain its original meaning.

    I don’t know anything about economy and accounting, etc. These are my understanding on piracy in relation to the economy. I may be wrong and I hope so.

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