Microsoft is currently gearing up for the massive, and massively important, launch of Windows 7, which goes on general availability on Oct. 22. But in China, pirates have already preceded the official launch of the new operating system, and consumers can buy a copy of Windows 7 for an absolute pittance.
Piracy is a problem everywhere in the world. Just ask the trade bodies for music and movies. And software piracy is a huge problem, particularly for Microsoft, which sells relatively expensive products that are used by hundreds of millions of people. It’s a particular problem in China, known for its lax attitude to copyright laws, and up to 80 percent of software sold in China is estimated to be pirated.
In August, four men were jailed for pirating Windows XP and then making it available as a free download on their Tomato Garden Web site. They didn’t charge for the product, instead making money from advertising on the site. Up to 10 million people are believed to have downloaded the illegal copy of the aging OS. But these victories are few and far between, with most pirates continuing to ply their trade.
According to Reuters, Windows 7 has been available to buy in China for the last month or so. A shopkeeper in Shanghai’s Xinyang market was offering all versions of Windows 7, in both Chinese and English for just 20 yuan ($2.93). This compares with the list price of up to $320. With that in mind, it isn’t hard to see why people are snapping up the pirated copies.
Price is seen as the biggest issue, naturally, with many official copies of software priced out of reach of most people in China. Microsoft has responded to this by cutting prices, with the price of Office 2007 Home and Student Edition being cut from 699 yuan to 199 yuan. And Windows 7 Home Basic will cost just 399 yuan upon release, which is around $58.
But while these measures will help, when delivered alongside harsher terms for pirates and education into the dangers of pirated software, it isn’t going to solve the problem overnight when an illegal copy of a brand new OS are available for just a few dollars.
However, it is estimated that the piracy rate could be cut to around 50 percent by 2012, and reach similar levels to the U.S. in 10 to 20 years. For now though, it looks as though Microsoft is fighting a losing battle.
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