Based on a recent survey of SMEs in Hong Kong, few have adopted practices necessary to ensure that they are complying with the law. In a telephone poll of 300 companies during March, only 26% indicated that they had implemented a system to ensure that they are using only legal software. One-third were unaware of the recent amendments to the Copyright Ordinance.
Ringo Wong, Chairman of the Business Software Alliance Hong Kong, said:
"The results of this survey are unfortunate but not surprising. Even one year after the entry into force of amendments to the Copyright Ordinance that criminalise the unauthorised use of software in a business enterprise, SMEs still are not taking steps to ensure compliance.
"Good software asset management practices are a sign of strong corporate governance and responsible management. Like ISO 9000 certifications, this is another way for SMEs to distinguish themselves as being well-run and attractive partners and vendors."
Recognising that legalisation of software use by businesses remains a challenge, the Customs and & Excise Department announced that it is considering the need to intensify enforcement action against such illegal conduct. Y K Tam, Head of Intellectual Property Investigation Bureau, Customs and Excise Department, said:
"Since enforcement action started in September last year, we have already conducted many successful raids, seizing more than 80 hard disks and arresting a total of 16 people in connection with corporate use of illegal software. We will consider increasing our enforcement activities significantly in this area if the situation does not improve after the entire period of the educational program, which ends on May 1st. All companies are therefore reminded to take the steps necessary to comply with the law.”