Software Pirates Face Tougher Penalties in Latin America

MIAMI — Latin American software bandits are squeezing the industry out of about $1.5 billion a year, computer giant Microsoft Corp. said last week.

Some experts estimate that counterfeit software currently accounts for 85% of all sales within Latin America.

But recent moves by governments throughout the region, which is a growing market for Microsoft, have resulted in tougher penalties for software pirates.

“By making people more aware of what piracy is and the cost to individuals, the industry and the government by way of lost taxes, we are seeing a decrease in activity,” said Kathia Quiros, anti-piracy manager for Microsoft’s Latin America operations.

Microsoft Latin America, which markets to 10 countries in the region, has seen its successful Windows 95 software hardest hit. “The most popular products have always been counterfeited, but in some places only 1 in 100 copies are the original software,” Quiros said.

In Nicaragua, an estimated 99% of all software is pirated, and until recently manufacturers had few legal safeguards to protect their interests, she said.

But members of the Business Software Alliance, an international industry watchdog group, have been pressuring governments to recognize the tax benefits of stamping out computer piracy.

In Brazil, the senate is currently considering a bill to make software piracy a fiscal crime.

But some software firms claim they are unable to set up operations in Latin America because of the distrust that has been generated through widespread counterfeiting.