Customs Detected a Corporate End-user Piracy Case Involving Largest Numbers of Computers

Date: 15/11/2005

An anti-piracy operation was mounted yesterday (November 15) to follow up on complaint received from the public that an online game items trading company was using infringing computer software in the course of business.

During the operation, Customs officers raided an online game items trading company in Quarry Bay and seized 163 computers worth about $820,000, which were installed with infringing software. This is a case involving the largest numbers of computers seized by Hong Kong Customs.

Customs officers arrested 2 men, aged 24 and 37, who were the director and manager of the company. They are on bail at $10,000 each pending further investigation.

The company involved had more than 100 employees and was a vendor selling online game accounts, items and currencies. The seized computers were installed with popular operating system and office application. The market value of the genuine version of these software was about $670,000.

" With effect from April 1, 2001, anyone who knowingly uses pirated software in business commits a criminal offence under the amended Copyright Ordinance. For example, using infringing computer software to prepare business related letters, reports or design drawings will constitute a criminal offence. The maximum penalty is a fine of $50,000 per infringing copy and four years' imprisonment," a Customs and Excise Department spokesman said today.

Since April 1, 2001, Customs investigated 101 corporate computer software end-user piracy cases. 68 companies were found suspected of committing the offence and 136 persons were arrested. The highest penalty was a fine of HK$50,000 and 6 months imprisonment suspended for 2 years (case detected on July 25, 2002). There was another case (case detected on June 25, 2004) in which the company involved was fined HK$235,000.

To encourage people to provide information on such piracy activities, a reward scheme financed by Business Software Alliance and administered entirely by Customs has been launched. Members of the public are encouraged to support this Scheme by providing Customs with information on the use of pirated software in business through the Customs 24-hour Hotline at 2545 6182.

All information provided will be treated in strict confidence.

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