Intellectual Property Intellectual Property RightsRightsSoftware in PolandSoftware in Poland

Tomasz BochenekTomasz BochenekDyrektor GeneralnyDyrektor GeneralnyMicrosoft Microsoft Sp.z o.o.Sp.z o.o.

Business Software AllianceBusiness Software Alliance

The Business Software Alliance (The Business Software Alliance (www.bsa.orgwww.bsa.org) is an ) is an organization dedicated to promoting safe and legal organization dedicated to promoting safe and legal digitaldigital world. world.

BSA programs BSA programs are focused onare focused on education and policy education and policy initiatives that promote copyright protection, cyber initiatives that promote copyright protection, cyber security, trade and e-commerce. security, trade and e-commerce.

BSA members include Adobe, Apple, Autodesk, BSA members include Adobe, Apple, Autodesk,

Avid, Bentley Systems, Borland, Cisco Systems, Avid, Bentley Systems, Borland, Cisco Systems, CNC Software/Mastercam, Entrust, HP, IBM, Intel, CNC Software/Mastercam, Entrust, HP, IBM, Intel, Intuit, Internet Security Systems, Macromedia, Intuit, Internet Security Systems, Macromedia, Microsoft, Network Associates, Novell, PeopleSoft, Microsoft, Network Associates, Novell, PeopleSoft, SeeBeyond, Sybase and Symantec.SeeBeyond, Sybase and Symantec.

Software piracy ratesSoftware piracy rates

1994 1995 1996 1997 1998 1999 2000 2001 2002

Poland 77% 75% 71% 61% 61% 60% 54% 53% 54%Czech Rep. 66% 62% 53% 52% 45% 42% 43% 43% 44%Russia 95% 94% 91% 89% 92% 89% 88% 87% 89%Great Britain 42% 38% 34% 31% 29% 26% 26% 25% 26%USA 31% 26% 27% 27% 25% 25% 24% 25% 23%

BSA report prepared by International Planning and Research Corp.

Software producers lossesSoftware producers losses

1994 1995 1996 1997 1998 1999 2000 2001 2002

PL 208 150 169 108 142 165 104 96 137CZ 97 56 69 52 43 37 45 34 55RU 516 301 383 252 273 166 109 120 492UK 371 445 337 335 465 680 531 291 337US 3 590 2 940 2 361 2 780 2 875 3 191 2 632 1 808 1 961

BSA report prepared by International Planning and Research Corp. [$M]

EEconomic impact study by IDCconomic impact study by IDCApril 2003April 2003 10 points piracy rate 10 points piracy rate

reductionreduction would bring $ would bring $ 1.11.1BB to the Polish economy to the Polish economy

Impact from lowering BSA Impact from lowering BSA piracy rate by 10% (2.5% a piracy rate by 10% (2.5% a year from 2002 – 2006)year from 2002 – 2006)

GDP increase - $ 1 130GDP increase - $ 1 130MM Local industry revenue Local industry revenue

increase – $ 700increase – $ 700MM High-tech new jobs – 3214High-tech new jobs – 3214 Additional tax revenue - $ Additional tax revenue - $

130130MM

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

2003 2003-2006 Cumulative

GDP Contribution * (SM) Local Revenues ($M)

Tax Revenues ($M)

International Intellectual International Intellectual Property Alliance Property Alliance

Books

LossPiracy Level Loss

Piracy Level Loss

Piracy Level Loss

Piracy Level Loss

25.0 30% 45.0 45% 107.9 54% 337.7 91% 40.0 520.6

Total losses

Motion Pictures Records & MusicBusiness software

applicationsEntertainment

software

Poland

*/ Business software applications data were based on first 3 quarters of year 2002Final BSA data shows $ 137 million losses

*

IIPA 2003 Special 301 IIPA 2003 Special 301 Report Report Poland was elevated to the Priority Poland was elevated to the Priority

Watch ListWatch List Together with Lithuania and Russia in CEETogether with Lithuania and Russia in CEE With Lithuania the only UE With Lithuania the only UE country country

candidatescandidates Recent move to PWL driven mainly by Recent move to PWL driven mainly by

piracy in music and movie areapiracy in music and movie area

Anti-piracy CoalitionAnti-piracy Coalition

Established in 1998 by:Established in 1998 by: BSABSA local committee (business software industry) local committee (business software industry) FOTAFOTA – (local MPA representative –movie industry) – (local MPA representative –movie industry) ZPAVZPAV – (local IFPI representative – music industry) – (local IFPI representative – music industry)

Activities:Activities: Seminars & trainings for judges, prosecutors, police, customs Seminars & trainings for judges, prosecutors, police, customs

etc.etc. Lobbying Lobbying Yearly awards: Golden Badges (Police – 6 years), Golden Yearly awards: Golden Badges (Police – 6 years), Golden

Barriers (Customs – 5 years) – great incentive – really works!Barriers (Customs – 5 years) – great incentive – really works! PR activities & eventsPR activities & events

Anti-piracy CoalitionAnti-piracy Coalition

Government Government YearlyYearly report reportss concerning observance of copyright and related rights concerning observance of copyright and related rights

in Polandin Poland (since 2001) (since 2001) Strategy of activities for intellectual property protection in Strategy of activities for intellectual property protection in

Poland – accepted by Poland – accepted by GGovernement in August – goals and overnement in August – goals and timelines for different authorities (incl. Ministries of: Internal timelines for different authorities (incl. Ministries of: Internal Affairs; Finances; Justice; Culture)Affairs; Finances; Justice; Culture)

EducationEducation Cooperation with the Ministry of EducationCooperation with the Ministry of Education Survey to be started in 1000 secondary schools in OctoberSurvey to be started in 1000 secondary schools in October Multimedia materials to be sent to secondary schools this Multimedia materials to be sent to secondary schools this

Winter – introduction of IPR basics into school program Winter – introduction of IPR basics into school program

Anti-piracy CoalitionAnti-piracy Coalition

Top 500 campaignTop 500 campaign DM awareness campaign – targetting 500 top listed DM awareness campaign – targetting 500 top listed

companies and 180 universities in Poland companies and 180 universities in Poland Audit as a tool to sweep away illegal software, Audit as a tool to sweep away illegal software,

music & video files from computers/serversmusic & video files from computers/servers 7 % response rate after 2 months – interested in 7 % response rate after 2 months – interested in

audit tools & proceduresaudit tools & procedures Second DM wave (October) – GASP audit tool free Second DM wave (October) – GASP audit tool free

offeroffer

P/RP/R 277 publications in 3 months: June - August277 publications in 3 months: June - August

Bad newsBad news

Warsaw StadiumWarsaw Stadium Internet piracy level increaseInternet piracy level increase Delays in prosecuting criminal casesDelays in prosecuting criminal cases Level of criminal penalties not sufficient Level of criminal penalties not sufficient

to deter piracyto deter piracy Weak border enforcement to halt flow Weak border enforcement to halt flow

of pirated productsof pirated products

Good newsGood news

Very good police cooperationVery good police cooperation Significant criminal sentences issued Significant criminal sentences issued

by courts in software piracy cases:by courts in software piracy cases: Kraków – corporate end user piracyKraków – corporate end user piracy Gorzów Wlkp. – hard disk loadingGorzów Wlkp. – hard disk loading

Few terminations due to „lack of social Few terminations due to „lack of social harmfulness”harmfulness”

SummarySummary

Poland is still being far behind EU and most Poland is still being far behind EU and most of EU candidates in terms of piracy levelof EU candidates in terms of piracy level

Progress in lowering piracy level in businessProgress in lowering piracy level in business Increase in the area of individual consumersIncrease in the area of individual consumers Low awareness of benefits from decreasing Low awareness of benefits from decreasing

piracypiracy Good law – weak executionGood law – weak execution