Criminal Action against State Piracy in Argentina

By Hector D. Calabia

IDG News Service, Buenos Aires Bureau

BUENOS AIRES – (12/18/2000)

 

On Friday, Software Legal, one of the two Argentine software trade associations, sued criminally against several Argentine federal state bodies, accusing them of using pirated software. Software Legal, a trade association of international software vendors, charged against the Secretariat for Tourism, the Federal Radio Committee (COMFER), and the Superintendency of Social Security. Meanwhile, the other trade association, the Argentine Chamber of Software and Computer Services Companies (CESSI) sent a legal notification to the Chief of the Cabinet of Ministers, Chrystian Colombo [CQ], requesting a "fast solution to the state software piracy" problem.

 

This afternoon, Jorge Cassino, the president of the CESSI will have a meeting with the number two man of the Cabinet of Ministers, Marcos Makon [CQ], seeing a solution to this problem, said CESSI officials.  However, the chances for a solution are very low. "We have been waiting all year long, and no solutions were offered", said Cassino.

 

Among the federal organizations in the aim of the CESSI is the powerful AFIP (Federal Revenue Service), equivalent to the US IRS. By midday last Friday, the CESSI filed a criminal lawsuit against this agency for US$20 million. The lawsuit was presented to the Federal Court Nº 10, in charge of Judge Gustavo Literas, according to a press report distributed this morning by the CESSI.

 

According to spokesmen of both trade associations, the biggest problem is the bureaucracy and the many layers of state organization that makes it almost impossible to determine a valid interlocutor. "Last year, we had reached an agreement with the former Secretary of Public Proceedings, Claudia Bello, but after the inauguration of the new President and the appointment of new Ministers, everything reverted to point zero", a spokesman for Software legal said.

 

Last week, Jorge Cassino confirmed to the IDG News Service that the federal state owes about $35 million to the software industry for unpaid license fees, not counting fines and accumulated interest. The very convenient agreement reached with Claudia Bello would have reduced this to only $5.4 million, an "almost symbolic" payment for the regularization of software used in the public sector. [See " Groups Urge Argentine Government to Use Legal Software", Oct. 24]

 

This problem does not only affect the national administration. It extends to the provincial states and municipalities. Last Friday, a search warrant was issued against the City of Buenos Aires Housing Commission, in order to check for pirated software being used there. A in-house lawyer, that did not allow the machines to be inspected, stopped the search. Negotiations are being held in order to resume the search today.

 

Software Legal represents the interests of international software vendors in Argentina. After the end of the truce extended to private companies and the State for regularizing illegal software (November 15, 2000), it has been presenting criminal lawsuits against big and medium-size enterprises in Argentina almost every two weeks. It has got 170 search warrants since 1998, and it has sent more than 15,000 warning letters to private companies suspected of using pirated software, according to a report issued by the trade association.

 

Criminal lawsuits are possible because software piracy is considered a crime in Argentina, since a new law for the protection of copyright was passed in November 1998. The distribution and use of pirated software can be punished by up to 6 year imprisonment.

 

The piracy rate of Argentina is about 62 per cent. According to Software Legal, the losses caused by this activity amount to $192 million yearly.

 

The Argentine Chamber of Software and Computer Services Companies (CESSI) is at http://www.cessi.org.ar. Software Legal can be reached at http://www.softwarelegal.org.ar/.

 

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This article was originally published by the IDG World Network of magazines and Web Sites
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