According to a BSA-IDC global software piracy study, the Indian software industry lost around $2 billion due to software piracy last year. In a scenario like this, Intellectual Property (IP) protection is one step to encourage indigenous innovation and local software product development. ?Innovation can only be facilitated if inventors and developers know that their intellectual property will be protected and the eco-system provides adequate checks and balances for innovators,? said Lizum Mishra, India director, Business Software Alliance (BSA), an international association representing the global software industry.
?BSA and Economist Intelligence Unit (EIU) jointly publish a study annually which statistically proves the correlation of a nation?s IT competitiveness to levels of software piracy, legal protection offered and patent development. Innovation naturally facilitates competitiveness,? she said.
Although it has shown a gradual decline over the years, piracy continues to hinder the growth of the software product market. ?We need to create an ecosystem for IP protection which is equally relevant to the policy makers, the government as well as to an individual,? Mishra said. ?The need is to create an environment at a national level that facilitates and protects the process of creative thinking. Areas of improvement include IT infrastructure, R&D and legal environment in the country which are relatively low for India as stated in the BSA-EIU IT competitiveness index,? she added.
The outsourcing haven for IT services that India used to be by virtue of its low labour cost and large skill base, is being threatened by other economies, most notably China. This is another reason why Indian firms must try to be competitive not only on price, but by offering a demonstratably higher value. ?This would involve development of original intellectual property that call for stringent protection,? she said.
According to Mishra, the government?s role would help add to economic development through establishment of a robust local software ecosystem for the domestic market, generate employment and significant tax revenue for the domestic economy. ?Strong IP adherence increases inflow of international capital and technical knowhow for the nation,? she said.
Mishra urged that Indian companies and leading bodies like Nasscom, FICCI, CII and the government need to work together to address the growing menace of software piracy. The enforcement system too needs to be more stringent and effective. ?Greater awareness needs to be generated and training imparted among law enforcement officials and the judiciary on what constitutes copyright infringement and overall intellectual property violation,? she added.
•Although piracy has shown a gradual decline over the years, it continues to hinder the growth of the software product market
• software industry lost around $2 billion due to software piracy last year
• The outsourcing haven for IT services is being threatened by other economies, most notably China
• This is another reason why Indian firms must try to be competitive not only on price, but by offering a demonstratably higher value
• Govt can help by establishing a robust local software ecosystem for the domestic market, generate employment and significant tax revenue for the domestic economy