Special pricing scheme mulled to curb piracy

CEBU, Philippines - In its bid to promote the use of genuine software and curb the high piracy rate in the country, software giant Microsoft Philippines will be introducing a special pricing scheme for selected sectors in the next few months.

Microsoft Philippines Inc. License Compliance Manager Fortune Abelo-Magsadia announced that the academe, Internet Café sectors as well as computer laboratories will be given different pricing levels for software licenses.

This is to strengthen the company’s promotion of using only genuine software in the Philippines, although some agencies in the government is also doing its job in minimize the use of pirated software in the country.

Magsadia said, in the next few months, the academe will be offered a very attractive pricing package for software products.

The Internet Café industry will be also given special privilege pricing package, as well as the computer laboratories of some companies, and educational institutions.

She said Microsoft still has to finalize this plan, and will come up with concrete information in the next few months, as it is still drawing effective solutions to make software products affordable, initially for these priority sectors.

Although, Cebu is positioned as the IT Hub in the Philippines, it has high software piracy rate of about 90 percent. National rate is at 70 percent.

 Internet Café operators earlier lamented that with the tough competition in the industry, investment in software license is one of main issues for the industry.

Magsadia said Microsoft had been very sensitive to the needs of the huge Internet Café market, and that the company is studying a good solution, on how to encourage all Internet Café operators implement all genuine software usage, without comprising profitability, and operational costs.

She said Microsoft is still concern of the Philippines’ standing as one of the highest in the world’s piracy “watch lists.” Offering software products affordably, and providing attractive payment package especially for SMEs is one of the tools that may push improvement of the country’s piracy rate position.

Meanwhile, other industry players are also pushing the use of Open-Source technology, in order to save cost on licensing investments.

OpenSource advocate Winston Damarillo, chairman of the Global Gateway Venture Capital, said there is a need for the Philippines to fully embrace the Open Source technology, as the country's market is very "cost sensitive".

Damarillo added that Cebu can easily strengthen its credibility as IT Center, if there is a growing number of Open Source literate engineers and experts.

Based on IDC report, since the year 2004 until 2006 the Philippine's piracy rate is unmoved settling in the 71 percent. This means that out of 100 software program being used in the Philippines, 71 of which are pirated. (FREEMAN NEWS)