Customs Detected the Largest Corporate End-user Piracy Case

Date: 11/03/2005

An anti-piracy operation was mounted yesterday (March 11) to follow up on complaint received from the representative of copyright owner that an electronic watch manufacturer was using infringing professional computer aided designing software in the course of business.

During the operation, Customs officers seized 16 computers in which infringing software were installed from an electronic watch manufacturer in Kwai Chung. The seized computers and software were worth over $8,000,000. 2 HK Chinese males aged 47 and 32 respectively were arrested. They were the director and the chief of computer department and were temporarily released on bail at $5,000 each pending further investigation.

The infringing software being installed in the seized computers were expensive professional computer aided designing software that includes PTC Pro/Engineer Wildfire, Autodesk AutoCAD and Adobe Photoshop. The original value of these software were worth more than HK$8,000,000.

" 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 105 corporate end-user piracy cases. 74 companies were found suspected of committing the offence and 141 persons were arrested. 19 cases have been convicted by court. The highest penalty was a fine of HK$50,000 and 6 months imprisonment suspended for 2 years.

Customs appeals to all business enterprises to use legitimate software as well as to implement proper software asset management measures in order to comply with the law

To encourage people to provide information on 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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