Customs Mounted a Series of Operation Against Corporate End-user Piracy

Date: 06/03/2006

In an operation against corporate end-user piracy conducted from March 6 to 9,2006, Customs officers of Intellectual Property Investigation Bureau raided six companies.

From five companies raided, they seized 34 computers and 47 infringing computer software discs worth about $120,000. The computers seized were installed with infringing software of operating systems, office and design drawing applications. The genuine version of the software was about $220,000 in the market.

9 men and 2 women, aged between 30 and 44, were arrested. 9 were directors and 2 were staffs of those companies. They are on bail at $10,000 or $5,000 each pending further investigation.

" 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 111 corporate computer software end-user piracy cases. 73 companies were found suspected of committing the offence and 149 persons were arrested. 38 cases were prosecuted and 31 were convicted. 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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