For many developing countries, small- and medium-sized enterprises (SME) have no choice but to use pirated software due to their lack of capital resources and the high cost of patented technology.

As a result, piracy poses a challenge to the protection of intellectual property rights (IPR), both to developers of technology and to trading partners in the increasingly important paperless e-commerce sector.

In a fast-moving global economy, paperless trading using electronic technology and digital data along the entire business chain is saving billions of dollars every year.

Paperless trading is widespread and increasingly efficient. But it also poses challenges in IPR protection in developing countries, including China, because of the cost of the latest technologies.

"Of all the challenges impacting paperless trading today, IPRs are fundamentally affecting the entire trade environment," says Juan Capunay, deputy executive director of Asia-Pacific Economic Cooperation (APEC) Secretariat.

"High prices mean most SMEs do not have the opportunity to use the newest technologies. That is the biggest reason for piracy," says Zhang Nianlu, secretary of China International Electronic Commerce Center.

As a result, an increasing numbers of countries and organizations are attempting to bring down prices and help SMEs join the evolution to paperless trading.

APEC's 21 member economies recently signed an agreement to urge technology developers to lower prices and enable more enterprises to use their products.

They also agreed to establish a fund to help SMEs purchase needed technology through installment payments .

Switching from paper documents increases security and transparency because it requires greater cooperation from governments, technology developers and trade partners.

According to Liao Xiaoqi, vice-minister of commerce, the government is already developing a means to share advanced technologies and information among enterprises.

It is also urging SMEs to enhance their IPR awareness and protect their own innovations to better compete with big companies.

Along with giving SMEs a stronger sense of IPR protection, the government is also developing a healthier environment to help them join in paperless trading and at the same time eliminate their use of pirated products.

"In order to promote increasing development of paperless activities, we are using a much securer electronic data management system," Liao adds.

"We believe that support in building a healthier environment for SMEs will reduce the risk of investment and enhance confidence for more innovation," says Pancy Fung, the assistant director of Intellectual Property Department of the Hong Kong Special Administrative Region.

"In order to give our services high quality and discourage piracy, we have developed a system in which information is input and amended on a website. It works well and is secure. Without using pirated software, managers can in a short time be able to do their work by themselves. "

"We are happy to see that 57 percent of brand owners now use our system because they believe it reduces their own risk of being pirated," she added.

The effort also needs the participation of developers.

"We are pleased to cooperate with more and more enterprises, especially with SMEs," says a spokesman for Hanwang Technology Co Ltd.

"In this way, we provide our own advanced technology and information to more businesses and put it to better use. Although the prices are lower, we want more SME to share our technologies."

(China Daily 09/10/2007 page9)

2013-07-17