The Argentine Government is Among the Main Users of Pirated Software

By Hector Calabia

IDG News Service, Buenos Aires Bureau

BUENOS AIRES, Argentina (20/10/2000) –

Two Argentine trade organizations, representing the IT industry, began this week a media campaign against the use of pirated software by public institutions and private business. According to the Chamber of Software Companies and Computer Services (CESSI), the Argentine government is one of the main users of illegally acquired software.

 

The campaign announces a "truce" until November 15 before initiating further legal actions, and publicly threatens with up to 6 years of jail for business executives that do not regularize their software licenses.

 

Last week, the CESSI said that in spite of having held negotiations for two years with the Argentine Government, the public sector still uses software illegally.

 

A survey commissioned by the CESSI detected about 200 government institutions that use pirated software, in blunt disrespect for the law and the copyright holders, said Jorge A. Cassino [CQ], chairman of the Chamber, at a press conference.

 

"During the last two years we have succeeded in having the Government admit that they use illegal software and we have tried to have them regularize the situation," said Cassino. Among the official institutions that use pirated software there are: the AFIP (Internal Revenue Service), the Ministry of Justice and the Federal Police. According to Cassino, the pirated software comprises products from Microsoft, Novell and Symantec.

 

The total cost of the pirated software is only US$5.3 million, considering 40.000 software units used by Government organizations, at the low prices offered to the public sector, compared with the prices to businesses and consumers, said Cassino. This figure does not include the provincial states, the town councils and the school sector.

 

Cassino added that the continuous replacement of official negotiators makes a definitive solution difficult, in spite that the payment conditions for software licenses are advantageous for the Government.

 

"This situation (causes that) as the public organizations do not regularize their situation, we cannot press on the private sector for their compliance with the law, when the people that should enforce the law do not abide by it", Cassino said. The "exemplary" value of the actions of the State is lost.

 

The irregularities in the use of software have lowered the trust of US and European companies that the CESSI has been contacting for business since the beginning of this year, Cassino said.

 

On May, the CESSI opened a US branch in Miami. The opening was attended by senior executives of the Chamber member companies, and supporters of its efforts against piracy: Sony Latin America, Acer Latin America, Hewlett-Packard, Adobe Systems, Cannon Latin America, IFX Unete, Corel Corp., Symantec, Network Associates, Cotel Com, Banco Nación Argentina, and Interamerican Marketing Solutions.

 

CESSI Miami serves as a bridge institution for integrating the production of Argentine software firms and US companies, with the aim of "exporting Argentine IT knowledge", thus preventing the emigration of qualified workers of the IT sector from the country.

 

Other trade organizations of software vendors have joined efforts with the CESSI for stopping piracy. "Considering that the 'piracy index' in the public sector is very high, Software Legal has decided to extend up to November 15 a 'truce on judicial actions' against the State" and against private organizations, said Martín Carranza Torres, the chairman of Software Legal, a trade association of software makers.

 

During an interview with the IDG News Service, after the press conference, the chairman of the CESSI, Jorge Cassino said that "if we sue the Government, I think that this will empower the software companies for suing those people that steal their products". Besides, this will be a cause of international discredit for Argentina.

 

The lack of compliance by the public sector makes advances on certain software production outsourcing deals more difficult. There are several cooperation agreements pending with foreign software makers, Cassino said.

 

In Argentina intellectual rights are ruled by the Law No. 11,723 passed in 1933, for protecting intellectual property in the media known by that time. On November 10, 1998 Congress passed a bill for updating the law, that included legal protection for software.

 

CESSI chairman said that when that by that time, many companies regularized the software they use. However, this urge for having legal products faded with time.

 

The Argentine Chamber of Software Companies and Computer Services (CESSI) is at http://www.cessi.org.ar. Software Legal can be reached at http://www.softwarelegal.org.ar/.

 

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This article was originally published by the IDG World Network of magazines and Web Sites
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