Sang Tao Computer charged with downloading pirates

Officials from the Vietnam Copyright Office today announced that they are taking action against retail companies that it claims have installed pirated versions of software into new PCs. PCs made by Acer, Lenovo, Dell and Compaq were shipped into Vietnam ‘naked’ – containing no software – and then pirated software was downloaded into the computers by local computer retailers.

In Ho Chi Minh City, the High Court recently accepted a case against retailer Sang Tao Computer, which has its headquarters in District 1, for copyright violation.  Sang Tao Computer is accused of loading pirated software into one new Compaq laptop that was purchased at the company’s Bui Thi Xuan Street shop. Previously the Copyright Office sent the company a number of letters warning that if they continued to sell pirated software, legal action would be taken against them.

It is thought that Sang Tao Computer loads pirated software into thousands of new PCs every year.  The court has been instructed to settle the case within four months.  If a settlement cannot be negotiated, the court will bring formal charges against Sang Tao Computer and it will seek damages which include losses suffered by Microsoft, plus legal fees.

The authorities also raided a number of other computer retailers and they, too, are now facing the charge of loading pirated software into new PCs.

Viettel is under fire as employees (not Viettel itself) at three Viettel stores, two in Ho Chi Minh City and one in Hanoi, are charged by the Market Management Bureau with loading pirated software into new Lenovo and Acer PCs.

The Market Management Bureau also raided three PICO stores claiming that employees of these stores had downloaded unlicensed software into Lenovo, Acer and Dell PCs.

The Market Management Bureau says that it will raid computer shops that are selling either international or local pirated software products.

“Piracy of ‘Made in Vietnam’ software is a significant problem for the general state of Vietnam’s economy and the state of the software industry,” said Market Management Bureau director Truong Quang Hoai Nam.  “The local software industry needs their intellectual property protected so that they can grow and be encouraged to innovate.”

Of all of the software that is downloaded in Vietnam, 83 percent is said to be pirated. The average for the Asia Pacific region is 60 percent. The Business Software Alliance has Vietnamese member companies that face the daily challenge of seeing their products copied and downloaded by both corporate and retail firms.

It just so happens that there is a new US regulation, the Unfair Competition Act, which makes it unlawful for US importers to obtain products from Vietnamese businesses that use pirated software. Under this Act, all software copyrights are respected, including those owned by Vietnamese software developers.

“Companies in Vietnam should comply with Vietnam copyright laws to avoid legal charges and damage their hard-earned reputation and assets,” said Business Software Alliance consultant, Dao Anh Tuan,

Michael Mudd, the regional representative of Open Computing Alliance, London, United Kingdom, said, "Open Computing Alliance (OCA) praises the decision of the Court in HCMC to hear the case against Sang Tao for Intellectual Property (IP) infringement. This is in line with the Prime Minister’s Decision 246 to develop Vietnam’s software industry, specifically to reduce the rate of software piracy in Vietnam, and the IP Law as updated in 2009 which is specifically to protect computer software and programmes.

He said that foreign investors will encourage this attempt to enforce Vietnam’s copyright laws. Foreign investors would be more willing to bring advanced technology to Vietnam if they could see that their innovations would be protected.

”This particular case is a milestone in that it is the first civil case on information technology IP infringement that is to be heard by the Court. Software developers in Vietnam should welcome this action and it is hoped that they will feel an increased incentive to work on their own innovations trusting that the Court might assist them when there is infringement on their IP rights," he said.