Software Piracy in India Cases

Software piracy in India cases have garnered significant attention due to the rising instances of copyright violations and court battles surrounding the distribution of software.

This article delves into the landscape of software piracy court cases, shedding light on the damages incurred by software giants, the challenges posed by the illegal distribution of software, and the crucial software piracy protection measures in India.

Examining famous software copyright cases and its implications, we explore how these cases affect the chances of software failure and highlight the pressing need for robust copyright enforcement in the Indian software industry.

Software Piracy in India Cases

Microsoft Corporation v. Yogesh Popat et al.

In the case of Microsoft Corporation v. Yogesh Popat et al., the Delhi High Court strongly condemned software piracy and awarded the plaintiff a sum of Rs 1,975 as damages.

Building upon this precedent, the Delhi High Court later awarded the plaintiffs a substantial amount of Rs. 2.3 million in the case of Microsoft Corporation v. Kamal Wahi.

Microsoft, a global software development leader, has consistently grappled with the issue of software piracy, prompting them to file numerous lawsuits worldwide, citing irreparable harm to their intellectual property (IP) rights and violations of other IP rights.

Indian courts have taken such cases into consideration, particularly those related to software piracy.

Microsoft Corporation v. Deepak Rawal

In this case, the Court identified copyright violations involving Microsoft Dos and Windows, resulting in the awarding of damages.

Although judges have the capacity to actively engage in software piracy trials, they seldom do so.

Nevertheless, the court’s decisions can serve as legal precedents for future cases, highlighting the importance of the judiciary’s active involvement in the process to enhance IP rights protection in India and ultimately reduce software piracy.

Time Incorporated v. Lokesh Srivastava, 2005 (30) PTC 3 (Del)

In this landmark case, the court made a significant pronouncement. It stated, “This Court has no hesitation in saying that the time has come when the courts dealing with actions for infringement of trademarks, copyrights, patents, etc., should not only grant compensatory damages but also award punitive damages.

This is done with the intent to discourage and dishearten lawbreakers who engage in violations with impunity, driven by a desire for financial gain.

They should realise that if caught, they would not only have to compensate the aggrieved party but also face punitive damages, which could result in a financial catastrophe for them.”

Despite this, Microsoft stands out as one of the most proactive companies in taking stringent measures against software piracy in India.

They have consistently pursued legal actions against various companies for over a decade.

Indian Courts, especially the Delhi High Court, have recognised and upheld their rights by ordering punitive damages ranging from Rs 5 lakhs for individual users to Rs 20 lakhs for the sale of counterfeit products by unauthorised vendors.

This approach by the courts aims to deter software piracy effectively and protect intellectual property rights.

Surat Software Piracy Case

In a significant development in the fight against software piracy in India, Sarine Technologies, an Israel-based software solutions provider, successfully sued five Surat-based manufacturers for illegally using its Advisor® software.

An Indian court ruled against these companies, finding them guilty of copyright infringement and the illegal use of Sarine’s pirated Advisor® rough planning software.

Following the lawsuit and court-ordered raids, the court issued a swift and final judgment against the infringers: Gopi Impex, Nirghay Impex, Pramukh Gems, Dhiren Diamonds, and Bhumika Gems.

The court mandated the immediate removal of the infringing software from their computers, sending a clear message that the use of unlicensed or pirated versions of Advisor® software is illegal.

David Block, CEO of Sarine, expressed satisfaction with the court’s swift and decisive action.

He emphasized that the ruling underscores the illegality of using unlicensed or pirated Advisor® software and affirmed Sarine’s commitment to aggressively protect its intellectual property and take action against entities involved in infringement.

Pratibha Syntex Settles for $100,000 Fine in Software Piracy Case

Pithampur-based textile firm Pratibha Syntex, has been ordered to pay a fine of $100,000 (equivalent to Rs 66 lakhs) as a settlement for using pirated software, including products from Microsoft and Adobe.

The settlement was reached in the Los Angeles Superior Court and subsequently approved by the judge.

As part of the settlement terms, Pratibha Syntex is prohibited from using unlicensed software or reproducing any portion of copyrighted software without the explicit permission of the legitimate copyright holder.

Furthermore, the textile company is required to create an information technology policy statement that addresses the use of licensed software.

This policy must be distributed to all employees. In response to this judgment, the Confederation of Indian Textile Industry (CITI) has issued a circular to all its members, referencing the Pratibha Syntex case and encouraging them to use genuine software to fulfill their business requirements.

Software Piracy Lawsuit Against Chetu

In a landmark decision, the Delhi High Court awarded Rs 30 lakh in damages to Microsoft Corporation, Adobe Systems, and Quest Software for software piracy.

The case was against ‘Chetu’, a New Delhi-based IT services firm, found using pirated software from these companies. Justice V Kameswar Rao highlighted the significant violation by Chetu, leading to the damages being equally split among the three software giants.

The court also issued a restraining order against Chetu, preventing any use of pirated or unlicensed software from the plaintiffs.

Investigations revealed that Chetu operated around 300 computers with unlicensed Microsoft Office and employed 40 to 50 staff using various Adobe products without proper licenses.

Despite Chetu’s claims of being a licensed Microsoft partner, checks showed no substantial licenses in their name. This ruling underscores the legal risks of software piracy and the necessity for businesses to adhere to licensing laws.

Intellectual Property Protection and Laws Against Software Piracy in India

India, as a member of the TRIPs Agreement, has amended its laws to provide robust protection for intellectual property.

In India, software is treated as a form of scholarly work and is granted copyright protection under the Indian Copyright Act of 1957, as the existing patent law doesn’t adequately cover software.

The legal framework for addressing software piracy in India involves both civil and criminal legislation under the Copyright Act.

Violating a software copyright can lead to a minimum sentence of seven days and a maximum of three years, along with fines ranging from 50,000 rupees to 200,000 rupees. Depending on the circumstances, provisions of the Information Technology Act of 2000 may also be applied in piracy cases.

Section 13 (1) (a) of the Indian Copyright Act, 1957 extends protection to various forms of original works, with computer programs recognized as unique artistic creations.

Any infringement of software copyrights can result in significant legal actions, including civil and punitive measures.

Furthermore, Section 51 (a) (ii) of the Indian Copyright Act, 1957 stipulates that providing a platform for the public dissemination of protected software or other works for profit constitutes copyright infringement.

For more details on the laws related to software piracy, please refer to the linked article.

The Role of Technology in Preventing Software Piracy Cases

In the ever-evolving landscape of technology and digital advancements, the battle against software piracy has taken on new dimensions.

The role of technology in preventing software piracy cases is instrumental in curbing intellectual property infringements and safeguarding the interests of software developers and companies.

Several key aspects illustrate the significant impact of technology in this ongoing struggle:

Digital Rights Management (DRM): DRM technologies are designed to control access to digital content and limit unauthorized distribution or copying.

Software developers employ DRM solutions to protect their products, ensuring that only legitimate users can access and use their software.

DRM also enables periodic updates and license management, providing a crucial layer of software piracy protection.

Product Activation and Licensing: Many software applications require users to activate their licenses online, validating the authenticity of the product.

This process links the software to the user’s unique identifier, making it more challenging for counterfeit software and unauthorised copies to proliferate.

Cloud-Based Software Delivery: Cloud-based software delivery and subscription models have gained prominence in the commercial software industry.

Users access software through the cloud, reducing the chances of piracy since the software isn’t physically stored on the user’s device. Frequent updates and monitoring are possible, enhancing security and combatting software counterfeiting.

Anti-Piracy Tools: Various anti-piracy tools and services have emerged, helping software developers track and combat piracy.

These tools monitor online platforms and marketplaces for unauthorized distribution of software, making it easier to identify and address infringement and illegal copying.

Legal Action and Enforcement: Technology assists in gathering evidence for legal action against software pirates. Digital forensics, tracking IP addresses, and monitoring online forums aid in identifying perpetrators.

Enforcement agencies collaborate with tech experts to pursue legal actions against those engaged in programming theft.

Blockchain Technology: Blockchain offers immutable and transparent records, making it useful for verifying software authenticity.

Software developers can utilise blockchain to create secure and traceable records of software licenses and transactions, further strengthening the combat against counterfeit versions.

Secure Download Platforms: Developers increasingly distribute software through secure download platforms that offer encryption, secure payment gateways, and protection against tampering during downloads.

This enhances the overall security and ensures that users receive the legal version of the software.

Machine Learning and AI: AI and machine learning algorithms can analyze vast datasets to detect patterns of piracy.

They help identify irregularities in software usage and flag potential violations, demonstrating the crucial role of technology in the continuous effort to combat software piracy and protect the interests of original creators and copyright owners.

In the realm of Internet piracy, where ease of access to illegal copies poses a significant threat, technology serves as a powerful ally in the fight against malicious code and unauthorised access.

As software companies continue to innovate, the integration of technology remains a cornerstone in the ongoing battle to uphold the integrity of the commercial software industry and preserve the value of human intellect invested in the creation of each piece of software.

Recent Software Piracy Cases Stats

Software piracy remains a pervasive issue worldwide, with alarming statistics shedding light on its prevalence and impact.

According to a survey by BSA: The Software Alliance, 57% of computer users in the Asia Pacific and Central/Eastern Europe regions admit to having engaged in software piracy at least once. Astonishingly, none of these individuals reported facing consequences for their illegal downloads.

Between 2015 and 2017, the software industry suffered staggering losses of $46.3 billion due to piracy. 

While there was a slight drop in global software piracy rates to 37% in 2017, the problem remains substantial, especially in countries where unlicensed software rates persist at 50% or higher.

In the United States, a mere 16% of software is used without proper authorization, reflecting a greater awareness of the legal and security risks associated with piracy.

Interestingly, 83% of unlicensed users in mature markets express a willingness to pay for software once they realize their mistake, suggesting that many unintentional pirates are open to legal alternatives.

Shockingly, two out of every five software copies in distribution worldwide are unpaid, and this trend is more pronounced for costly software products.

Remarkably, a significant 76% of employees choose not to report software piracy within their organizations, citing various reasons, including job security, fear of a ‘whistleblower’ reputation, or indifference to the issue.

Conclusion

In conclusion, software piracy cases in India have underscored the critical need for stringent enforcement of copyright laws and the protection of intellectual property.

The illegal distribution of software programs, whether in the form of application software or programming software, remains an offense of theft against product creators and copyright ownership.

To combat software counterfeiting, digital copy protection measures and robust end-user agreements are imperative.

As India’s internet services proliferate, action to combat software piracy must adapt to the changing landscape and the existence of individuals engaging in illegal software practices.

Upholding the rights of the licensed individual and adhering to intellectual property law will remain paramount in the ongoing battle against software piracy.

FAQs