Pirates have more market share on our products than us!

What is the level of software piracy in India?



Piracy is the biggest matter of concern for Microsoft in India. In spite of our being Microsoft and commanding major market share, it has less market share than what the pirates have on our products. So, the number one challenge for us is not to sell our software but to make people pay for them. It’s a pathetic situation as these people are our customers and friends. Some of them do it unknowingly, while some do it deliberately. And, it is very difficult to identify who is who. But, we are very clear that we will not take any action unless it is proved that it is a deliberate act of piracy.

We start with talking to these people asking them if they are aware of Microsoft licensing rules and our anti-piracy initiatives. If they accept that there is something wrong, we try to help them. Then if they do not comply, we use other means. The whole process involves what we call the three Es — Educate, Enable, Enforce.

While education and enabling is done by Microsoft, enforcement is left to

Business Software Alliance (BSA) and National Association of Software and

Services Companies (Nasscom), who we have tie up with.

But, to be fair, I should add that the level of software piracy in India has

certainly come down. However, there are two aspects to it. While the volume of

pirated software is small compared to the total volume of the industry, if this

volume is looked at without a comparison, it is very large.

Which are the sectors where piracy is more prevalent?



Everywhere. Piracy is there in all sectors. It is a direct correlation to the

level of knowledge in an organisation. In a large enterprise, the CEOs, CIOs are

more IT aware.

In the corporate scenario, the software bought is part of the whole project

of computerisation, which is normally outsourced to a vendor who has a tie up

with Microsoft on its products.

This holds true only for large software solutions like ERP and CRM products

and so on. But, what about Windows? The license could be for 10 machines while

40 of them would be installed with the operating system.

Take another case. An employee will install Photoshop on his machine saying

that he is not using the software for professional purpose. He will argue that

only sometimes when he needs to draw, he uses it. We, therefore, educate the

managers that it is their responsibility to find out if there are any illegal

copies in the organisation.

This is as far as large organisations are concerned. What about SOHO market?



(It is the) same thing. In SOHO market, at least, we have the vendors who we

have tie ups with. Even if you are a passive user, you are responsible. We try

to educate the people. Why do you want to take the risk for something you are

not using?

But, most of the machines in this segment are sold by the local assemblers.



All these years, the Nasscom and BSA (Business Software Alliance) have been

talking to the customers, educating them. They have not taken any harsh measures

till now.

Do you mean BSA/Nasscom will start raids in houses too?



These agencies have done enough to educate the poeple. How long can it continue? McKinsey study has pointed out that Indian software industry will grow to $87 billion by 2008. It will be $87 billion only if people pay for the software. There is no point in creating software if people do not pay for it. People get into business only when it is economically viable.

What is the revenue loss of Microsoft India due to piracy?



I would not like to talk of revenue loss of Microsoft. However, according to Nasscom, the total loss of Indian software industry is about Rs 700 crore.

Which are the rogue countries when it comes to software piracy?



There can be comparison if the piracy levels are at 20-22 per cent. If they are at the levels of 50 per cent and above, we have a bigger fight to take care than worry about the countries. If we reach a situation where we have to identify a country or compare them in levels of piracy, it is a desirable situation. At this time we have to forget it.

In comparison to the rampant use of pirated software, the BSA/Nasscom action

seems to be rare. Why is it so?



The idea is not to take action for action sake. The idea is to bring in efficiency. We do not want to put somebody in jail and forget. We tell them, "look, do you agree you have done something wrong? Now let’s sit down and discuss. Take care of our problem and pay for our software".

Which is the Microsoft product that is most hit by piracy?

I cannot say that any particular Microsoft product is more hit by piracy than the others. 

But, based on the domination of Windows 98, one would get an impression that it was the main victim.



On the contrary, Windows 98 is pre-installed in most of the machines, and would, therefore, be licensed copy.

What is the level of piracy in government and PSU departments?



I cannot categorise as government departments. They would come under large oraganisation, where the level of piracy is less. There are set standards in choosing the software. Purchase decision depends on recommendations made by competent authorities.