IT experts call for crackdown on copyright piracy

  BEIRUT: Information Technology (IT) experts gathered on Tuesday at Ramada Hotel in Beirut to tackle challenges facing Lebanon’s IT industry due to lack of Intellectual Property Rights (IPR) protection. “One of the main challenges facing this sector in Lebanon is the absence of effective entities tailored to the protection of IPR. This includes the challenge of issuing laws by the Lebanese government that are compatible with the international agreements signed by Lebanon for its accession to the World Trade Organization,” said Microsoft’s anti-piracy manager for North Africa, Eastern Mediterranean and Pakistan Aly Harakeh.

  Respecting intellectual property rights is one of the basic conditions of joining the World Trade Organization (WTO).

  Lebanon is a signatory to several international agreements relating to intellectual property rights and started the process for accession to the WTO in 1999, but could not join because of its failure to properly implement the basic required conditions. The country’s accession application is still ongoing, according to the WTO website.

  Harakeh warned against the drop in local investments in the IT field due to the continued increase in piracy activities. “Software companies pay huge amounts of money [to release] new programs to the market. [Costs include] research and development, the employment of software developers … distribution … training … in addition to other expenses such as marketing strategies,” he said. “Crackers take advantage of these efforts and sell copies at very cheap prices and without incurring any expenses, which drives the original issuing companies out of business.”.

  Harakeh’s remark was echoed by Rany Sader, managing partner of SADER & Associates, who said that unethical merchants use cracked software in 70 percent of the refurbished products they sell. He added that these people sell their products at a $100 less than the original product pretending to be selling them at less expensive prices due to the fact that they are smuggled products coming from the US.

  SADER said that despite the fact that these merchants get very small profits from their sales, they generate revenues that are bigger than huge companies such as Microsoft. “Moreover, they don’t pay taxes and insurance for their employees,” he said.

  The Lebanese government issued in 2000 the customs law, prohibiting the export, import and stocking of counterfeit works or any other goods considered as an infringement of copyright. But the situation on the ground shows it is difficult to practically implement such protective measures, since counterfeiters bring pirated products, including counterfeit movies, music CDs and computer programs in to Lebanon via illegal land or sea crossings, which are not covered by customs officers’ or local authorities.

  Harakeh underlined the importance of raising awareness among the private and public sectors in addition to consumers as to the importance of using original products which will benefit all sectors of the economy.

  “The respect of IPR in Lebanon will attract more investments,” he said.

  Sectors dependant on intellectual innovations are crucial to the Lebanese economy. Lebanon is on the top of Arab countries when it comes to intellectual innovations and arts, and these sectors can contribute a lot more to our economy than the core industries such as agriculture and manufacturing.

  According to a report issued by the Institute of Finance, the industries in Lebanon which copyright applies to contribute 4.74 percent to GDP and 4.54 percent to employment. However, the report said, the core industries contribute 2.53 percent to GDP and 2.11 percent to employment.

  The study said that the industries which copyright laws apply to generated $555.52 million of value added, generated from nine sectors including press and literature, music, theatrical productions, opera, motion pictures and video, radio and television, photography, software and databases, visual and graphic arts, advertising and copyright collecting societies.

  A report issued by the Business Software Alliance said that the piracy rates in Lebanon reached 74 percent in 2008, while losses incurred from piracy activities reached $49 million in the same year.

  Source: Dana Halawi, Daily Star

  (Dated December 16, 2009)