China Agrees to Step Up Its Efforts to Curb Software Piracy and Limit Procurement Discrimination

WASHINGTON - The Business Software Alliance (BSA) welcomed in a press release commitments by China to combat software piracy and limit procurement discrimination based on indigenous innovation policies, but said the ultimate test of progress will be increased software sales and exports.

China made these commitments at the conclusion of the annual US-China Strategic and Economic Dialogue, held May 9–10 in Washington. In a joint statement, China said it will strengthen the checks it uses to ensure government agencies are using properly licensed software. China also committed to eliminate discriminatory product catalogues that it had established as part of its indigenous innovation program.

“Four out of five software programs installed on personal computers in China are pirated,” said BSA President and CEO Robert Holleyman. “The fact that software piracy was on the table in this week’s talks between the United States and China underscores the impact it has on the US economy. It is encouraging that China has committed to strengthen its inspections of government agencies to ensure they are using legal software: it acknowledges that the results of China’s software legalization efforts to date have been inadequate. But it is also important to note that China has made a series of commitments like these in recent negotiations, and the software industry has not yet seen results that it can measure in increased sales and exports. For that reason, the US should continue insisting that China take credible steps to lower its piracy rate.”

“I am encouraged by China’s new commitments to limit the impact of its discriminatory procurement policies. These policies, under the umbrella of indigenous innovation, have made it nearly impossible for many BSA members to sell to the Chinese central or provincial governments. We look forward to seeing real change in the marketplace.”

The Business Software Alliance is the world’s foremost advocate for the software industry, working in 80 countries to expand software markets and create conditions for innovation and growth.