Impending Intellectual Property (IP) Law Change Singapore

As part of the United States - Singapore Free Trade Agreement (USSFTA) obligations, Singapore will be making significant changes to the Copyright Act. With the proposed Copyright (Amendment) Bill 2004, any party which is found with infringing software to obtain commercial advantage or significant extent can be prosecuted. The two significant new provisions relating to criminal offences and statutory damages* will strongly deter the use of unauthorised software at home and in the work place.

* Definitions

Criminal Offences:
With the new law, users caught and convicted for using unlicensed software will be fined up to $20,000 and/or imprisonment of up to 6 months for first time offenders. Repeat offenders may be fined up to $50,000 and/or imprisonment of up to 3 years.

Statutory Damages:
In addition to the criminal penalties, under the new law, the offender may also be required to pay statutory damages of up to $10,000 for each software infringement.

What is considered "illegal"? What is copyright infringement?

Infringement of copyright takes place when someone, without permission, does something that only the copyright owner has the exclusive right to do. For example, making a copy of a work without permission. It is not necessary that the whole work be copied. Infringement can occur as long as a substantial amount has been copied. It is irrelevant whether there was any ill intent or knowledge that the work was under copyright; 'innocent' infringement is still infringement.

For example
If Company A purchases or uses unauthorized software amounting to significant and wilful infringement, it may attract criminal prosecution. This includes underlicensing or unauthorized copying of software.

When
Amendments to the Copyright Law will come into effect on 1 Jan 2005
Frequently Asked Questions
Q:	How do I know if my software is legally licensed?
A:	For a Full Package product, you should have: Any media supplied with the software, like the CD-ROM The End User License Agreement (EULA) The Certificate of Authenticity (COA) Your purchase invoice or receipt For OEM Licenses (already on new PC/notebook), you should have: The End User License Agreement (EULA) The Certificate of Authenticity (COA) Your purchase invoice or receipt for the PC and software For volume licenses, you should have: The License Agreement License Confirmation document (if applicable) Your purchase invoice or receipt Your Volume Licenses are tracked online at the various secure online sites.

Q:	What is counterfeit software?
A:	Counterfeit software is software that has been illegally manufactured or copied. It can be hard to recognize, but missing key codes or components can signal a lack of authenticity. Counterfeit software comes without warranty protection, and you cannot upgrade the software. You also might have a hard time downloading updates from the software publisher.

Q:	Do I own the software I buy?
A:	No. A software license only gives you the legal right to use a piece of software within the parameters laid down by the owner of the copyright in that software. You do not own the copyright in the software itself.

Q:	How can I check for proper product documentation?
A:	With software already loaded on your new PC/notebook, you will probably find a label known as the Certificate of Authenticity (COA) attached to the bottom of the PC/notebook. For PCs/notebooks older than 3 years, look for COAs on the cover of the manual or as separate documents. With Full Packaged Products, you will find a COA on the top or side of the retail box. For many products, you will find an End User License Agreement (EULA) inside the box. Volume licensing purchases are handled almost entirely online. Your reseller should also provide the legal documentation of your purchases, such as invoices.

Q:	What happens if my PC is stolen or I lose my End User Licensing Agreement (EULA)?
A:	If the software came pre-installed, the license is attached to that PC and your only recourse is to file a police report. If you have a Full Packaged Product license and still have all the original documentation and CDs proving legal ownership, you have the right to reinstall the software on a new PC. If you have lost the documentation or CDs or if these have been stolen, you will need to file a police report. If the stolen items are covered by insurance, you may process a claim to replace it. If the license was purchased through a volume licensing agreement, you can reinstall the software onto a new PC/notebook.

Q:	Is the use of pirated software in Singapore against the law and will I be liable under criminal laws?
A:	With effect from 1 January 2005, there will be criminal penalties against significant wilful infringement regardless of whether the infringement is done in the course of trade (i.e. not necessarily limited only to sale of pirated copies). Hence, distribution via the Internet and significant infringement by companies using infringing software can be regarded as criminal offences. It is important for all businesses to put in place policies and processes to ensure that wilful infringing acts such as the use of unlicensed software are not carried out in their organizations.

Q:	The internet is full of amazing deals on software programs. Should I purchase from the Internet although I'm not sure whether the seller is reputable?
A:	Internet piracy is on the increase and recent investigation indicates that more than 60% of software sold through Internet auction sites are counterfeit, and more than 90% are sold under violation of the publisher's license agreement. The Internet is a high-traffic area for illegal copying and/or distributing unauthorized software. It's often the medium for advertising, offering, acquiring or distributing pirated software.

Q:	Can I transfer software from one PC to another?
A:	OEM software installed on a new PC cannot be transferred to another PC/notebook. If you bought the software (Full Packaged Product) at a retailer or have a volume license, you may transfer the software from one PC to another as long as you have uninstalled it from the previous PC.

Q:	My head office has a worldwide Enterprise Agreement with Microsoft. Is my local office covered on Microsoft software usage as well?
A:	Enterprise Agreement covers a fixed set software on a fixed number of PCs/notebooks. Therefore, your server software licenses may not be included in the agreement. Further, the total number of PCs/notebooks covered by this agreement must cover PCs/notebooks in your territory or country. You must ascertain this with your head office and ensure this information goes to your local Microsoft office as well.

Q:	Can I cut as many Open/Select CDs as I like for people in my company?
A:	Select Agreement customers may make as many copies of the products licensed as necessary to distribute the products to its users. All copies of any product must be true and complete copies (including copyright and trademark notices) can be made from CD-ROMs, disk sets or a network source, acquired from or made available by a Microsoft approved fulfillment source for that product.

Q:	Can I downgrade my Original Equipment Manufacturer (OEM) version of Microsoft Windows XP Professional to Windows 98 (second edition)?
A:	Yes, but OEM Downgrade rights for desktop operating systems apply to Windows XP Professional only. Please note that downgrade versions of Windows XP Professional are limited to Microsoft Windows 2000 Professional, Microsoft Windows NT Workstation 4.0 or Microsoft Windows 98 (second edition).

Q:	Microsoft frequently publishes Service Packs, Fixes and Upgrades. Am I allowed to install them Free of Charge?
A:	Yes, Service Packs and Fixes are covered by your EULA. However, Upgrades are only covered if you have subscribed to Software Assurance or have purchased an Upgrade License.