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Andrew Chetham

Two companies have made out-of-court cash settlements after being caught using illegally copied software following tip-offs from the public.

 The payment to industry group Business Software Alliance come at the end of its month-long campaign to expose firms using unauthorised software.

 The size of the settlements against Pacific Satellite and textile manufacturer Wong Sun Hing was not disclosed.

 An alliance spokesman said that in past cases, about a third of such settlements in Hong Kong were for more than $1 million, plus costs.

 Under terms of the settlement, the firms undertook to destroy unlicensed software and replace it with the legitimate product, and signed documents promising not to use illegal software in future.

 Both companies were found to have used unauthorised software published by alliance members, including Lotus 1-2-3 and Microsoft MS-DOS and Windows.

 'We are encouraged that both companies have agreed to implement effective software management measures,' alliance vice-president Valerie Colbourn said.

 As a result of its campaign, which offered rewards up to $15,000 for information leading to a successful legal action, the alliance said the number of tip-offs had risen dramatically.

 Previously, the hotline received about three calls a month. During the four-week campaign, which ended last week, it received 25, a spokesman said.

 Companies reported were from the shipping, banking, financial and manufacturing sectors, including seven listed firms. Another surprise sector with alleged offenders was the legal profession.

 At the launch of the hotline early last month, the alliance said 60 per cent of small and middle-sized companies in Hong Kong were using illegally copied software.

 Last week, it said it was pursuing 20 substantive leads and could start up to 15 civil actions in the next month.

 'Calls are flooding in and we urge all firms to legalise their software before they become our next target,' Ms Colbourn said.



Two companies pay up after public tip-offs reveal illegal software use