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Old 2nd May 2006, 03:19 AM
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China to toughen stance on software piracy

Computers shipped to buyers in the country must have a legitimate operating system installed, according to two government circulars

By Grant Gross, IDG News Service
April 10, 2006

The Chinese government has ordered all computers sold in the country to have legal software preloaded on them, in an effort to reduce piracy, according to a report Monday on the Web site of Xinhua, the official Chinese news agency.

The news comes on the eve of trade talks between the U.S. and China where intellectual property protection, including software piracy, is expected to be a topic of discussion.
Computers shipped to buyers in the country must have a legitimate operating system installed, according to two government circulars issued by the Chinese National Copyright Administration, the Ministry of Information Industry, and the Ministry of Commerce. The circulars, apparently released in late March, also require software providers give computer producers "favorable" prices to support the pre-installation, Xinhua said.
Chinese customers are free to choose any legitimate operating system they want, according to the report. The Chinese circulars are part of the government's efforts to curb piracy among government users, but the Chinese government also wants to promote legal software among corporate users, Xinhua said.
The circulars require computer manufacturers and software providers to report sales volumes and the number of pre-installed software systems by the end of February each year.
Intellectual property protection will be one of the agenda items as officials from the Office of the U.S. Trade Representative and U.S. Department of Commerce meet with Chinese officials in Washington, D.C., Tuesday. In a March visit to Beijing to prepare for the talks, U.S. Secretary of Commerce Carlos Gutierrez said that curtailing software piracy would bring in more tax revenue and create jobs in China.
The Business Software Alliance, representing several major U.S. software vendors, didn't have a comment on the Chinese announcement Monday.

I thought China made their own computers and therefore wouldnt be shipping in that many PC's?

The country will conduct seven enforcement operations against intellectual property pirates this year, and will open infringement centers in 50 cities

By Grant Gross, IDG News Service
April 11, 2006

Chinese government officials on Tuesday committed to increased protections for intellectual property such as software, saying they will step up criminal enforcement for software and entertainment piracy after talks with U.S. trade officials.

China will conduct seven special enforcement operations against intellectual property (IP) pirates during 2006, and it will open infringement reporting centers in 50 cities, Chinese Vice Premier Wu Yi said during a press conference in Washington, D.C.
China will also accelerate the transfer of piracy cases from administrative to criminal enforcement bodies, she said following a day of U.S.-China Joint Commission on Commerce and Trade (JCCT) talks. That announcement seemed to address U.S. software vendor complaints that China does not adequately enforcement IP laws.
U.S. officials praised the progress on trade issues during the day-long talks, saying the IP and other agreements move toward addressing a trade imbalance between the two countries. In 2005, the U.S. imported about US$202 billion more in Chinese goods than China imported from the U.S., according to U.S. figures.
"We have made progress," said Carlos Gutierrez, U.S. secretary of commerce. "There is still work to do."
During a presentation about the results of the talks, Wu emphasized the Chinese government's ruling, announced Monday, requiring all computers sold in the country to include a preloaded, licensed operating system. "This is an important measure taken by the Chinese side to address this issue at the very root," she said.
Asked if the Chinese commitments on IP protection were "modest," Gutierrez said the two countries had made "important progress."
"As with everything else, numbers will ultimately tell the story," he said.
China also promised to crack down on consumer markets selling pirated software, CDs and DVDs, and promised to "vigorously pursue" individual IP cases, according to a press release from the Office of the U.S. Trade Representative.
The Business Software Alliance (BSA), a trade group based in Washington, D.C., praised the move by the Chinese government to mandate preloaded software. But the mandate won't fix a major problem at Chinese businesses, where the vast majority of software remains unlicensed, said Robert Holleyman, BSA's president and chief executive officer.
"That is only part of the bigger challenge," Holleyman said of the Chinese preloading mandate. "That doesn't necessarily mean [businesses] are going to add PCs with legal applications."
An estimated 90 percent of software used in China was unlicensed in 2004, according to study by IDC.
Microsoft Corp. in November signed a deal with Lenovo Group Ltd. for the top computer seller in China to use only licensed versions of the Windows operating system. Microsoft announced similar deals with two more Chinese PC vendors this month.
Early Tuesday, before the JCCT talks were concluded, Holleyman said he was cautiously optimistic about the potential for progress on intellectual property protections in China. During BSA meetings in Beijing earlier this month, Chinese officials seemed receptive to the trade group's calls for tougher enforcement of copyright laws, Holleyman said.
However, Chinese officials made no concrete commitments to the BSA, Holleyman said. The Chinese government said it's fixed copyright violations within the federal government, but Holleyman said he's seen no audits to back up that claim.
"We think they've made some progress," he said. "But I haven't yet seen data to say, 'here is exactly what they've put into this effort.'"
Also announced after the JCCT talks concluded:
-- The Chinese government committed to adjust the domestic investment requirements for foreign telecommunications carriers operating in the country.
-- The Chinese government restated its 2004 commitment to technology neutrality for third-generation (3G) mobile communications standards.

Last edited by mulligan; 2nd May 2006 at 03:23 AM..
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Old 2nd May 2006, 03:57 AM
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Re: China to toughen stance on software piracy

90% is a lot
I wonder what's the stats on Macs?
テスト中: ベリーダンス : Japan SEM : カードローン (Not an IDN, yeah I do those too)
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