MSMEs ask resellers to slash software prices

CEBU, Philippines - Micro, small and medium enterprises (MSMEs) in Cebu are requesting resellers of software in Cebu to help them comply with the Intellectual Property (IP) Code of the Philippines or Republic Act 8293 by providing them with promotions that would make licensed software affordable.

Rey Calooy, president of the Filipino Cebuano Business Club (FCBC) said that even if MSME operations only require two to three computer units, buying licensed software for each unit would still be costly on their part.

“Most MSMEs do not need many computers because their operations are just small. However, because of the cost, most would be tempted to use unlicensed software,” he told The Freeman.

In order for a computer to fully operate, a set of software amounting to about P12,000 should be installed, dyHp technician Jojo Empiales said. For example, the Windows XP operating system costs around P5,000 to P6,000 and the Microsoft Word is also at the same price range. This pair has to be bought and installed only in one unit.

Cebu Business Club president Dondi Joseph, in a text message, said that software is “unfortunately very expensive for business but there is a law and the law should be followed.”

In a separate interview, Ng Khai president Wilson Ng said his company, or any software reseller, is not authorize to lower down the prices of the software they are reselling.

“But what we (Ng Khai) have been doing is give installment payment options for some companies who really could not afford (to pay upfront,)” he said.

Microsoft Philippines, in an effort to help Internet cafés buy licensed software launched the Microsoft I-Café Program, which includes a rental rights agreement exclusive for Internet café owners who will use genuine Microsoft software. The agreement gives the I-café owner the right to rent out the use of Microsoft Windows Operating System and Microsoft Office applications.

Aside from the rental rights agreement, Internet café owners using genuine software can enjoy other benefits like free tools that include business management tools, a billing and metering tool, business management documents, best practices guides, a business plan template, and a customer registry.

Ng said that based on Ng Khai’s sales, there are already some I-café owners that have availed themselves of the promotion. However, if compared to the total number of Internet cafes in Cebu, the take-up is still low.

The Pilipinas Anti-Piracy Team (PAPT) composed of the National Bureau of Investigation (NBI), the Optical Media Board (OMB) and the Philippine National Police (PNP) earlier announced that it is giving Cebu businesses a 20-day grace period, which kicked off June 1, to legalize their use of software. Violators of the law will face penalties including imprisonment of up to nine years and penalty of up to p1.5 million.

PAPT said it will conduct massive raids on violators of RA 8293 in Cebu on June 29.

Gener Luis Morada, national advocacy officer of I-Café Pilipinas, said there should not be a problem on the crackdown. However, the problem is on PAPT’s imposition of having the IP (intellectual property) seal from the IP Coalition, which is a private organization.

“It is a private organization. How can it have any regulating function? It is an additional red tape and what would prevent them from charging fees for the sticker? (The sticker from the IP coalition is not in the IP code.) This could also be a venue for corruption where there would be unscrupulous people who would sell the sticker,” he said.

In the statement, PAPT will spare the inspection of business establishments with the IP seal. The IP Seal is awarded by the coalition to businesses that observe compliance with the IP laws in their operations, including the use of licensed and legal software. The PAPT maintains a memorandum of understanding with the IPC which covers this provision.

FCBC’s Calooy said information dissemination and educational campaign on the benefits of using genuine or licensed software and the repercussions of using unlicensed ones is still the best tool to combat software piracy in the province.

“Especially with some MSMEs, who are innocent on what software—genuine or not is installed in their personal computers. Wala lang gyud silay kalibutan (they are not just aware because their only concern is to have a computer. More so that there are computer technicians that would offer to install software at lower costs. They would just know when they are raided,” he said.