US laws will push firms to legitimate IT

At a seminar on “Shifting Sands in International Trade Oppor-tunities for Southeast Asian Manufacturers”, panellists urged Thai enterprises to adapt to this new law to ensure smooth business growth and competitiveness with other trade partners in the United States.
Two US states – Washington and Louisiana – recently passed competition acts targeting illegal software, and at least 10 others are considering similar laws.
These laws require manufacturers and exporters anywhere in the world to use only legitimate information technology, both hardware and software, in carrying out manufacturing and commercial activities from offices to factories. Traders, suppliers, and middlemen found using illegal IT can be subject to a maximum fine of US$250,000 (Bt7.8 million), while trading with those firms could be banned.
The laws are aimed at protecting and maintaining the competitiveness of companies that use legitimate IT, which may involve higher operational costs than with companies that use illegal IT.
Pajchima Tanasanti, director-general at the Intellectual Property Department, said the US laws would not only challenge Thai firms, but also enhance the competitive edge of companies that are using only legitimate IT in their business.
“In fact, firms that strictly follow the Thai copyright act will not only be complying with the fair-competition requirement but will also benefit from the new laws in terms of business competition and international acceptance,” she said.
Thailand has adequate intellectual-property laws and the US laws only provide one more incentive to comply with the Kingdom’s own laws, or else businesses could lose their chances in the US market, Pajchima emphasised.
Michael Mudd, Asia-Pacific regional representative of the Open Computing Alliance, said the US competition laws were an opportunity for Thailand to compete with China, as Thailand is ahead in protection of intellectual-property rights.
Many US firms consider IPR protection a factor for doing business with their partners and for considering future investment. If Thai businesses use legal IT, it will ensure smooth trading with the US, Mudd said.
According to IDC, a research firm, the use of illegal software cost the copyright owners some $59 billion in losses in 2010. For commercial or business software, the value of illegal software was interestingly the highest in the United States. China was second with $7.78 billion.In Thailand, the report put the figure at $777 million, 17th in the world.
Darani Vachanavuttivong, co-managing partner and managing director for intellectual property, Tilleke & Gibbins International, said Thai manufacturers should use legal IT to avoid facing problems from the more stringent protection of IPR.
She warned that manufacturers must ensure that their suppliers use legal IP as well. Under the US laws, the firm dealing with suppliers who use stolen or inappropriate IT in its business operations, will be punished.
Somporn Maneeratanakul, president of the Thai Software Industry Association, said private enterprises could show that they are respectable and responsible business entities simply by using legal products and IT.