Thai Software Associations Deserve Credit for Pushing Ahead in Time of Crisis
By Somporn Maneeratanakul
BANGKOK, May 12, 2010 - The various Thai software associations should be congratulated for pushing ahead with efforts to support the software industry during this difficult time in Thailand. Their recognition that the software industry needs support now, despite political issues, is providing the software industry with an important dose of optimism at this difficult time.
Software Park’s recent announcement to organize the Bangkok Software Summit 2010 (BSS 2010) is a sign that the Thai software industry is keeping its eye on the long-term competitiveness of the industry. BSS 2010, to be held on 21-22 September at the Queen Sirikit National Convention Center, will include representatives from the Association of Thai ICT Industry (ATCI), the Association of Thai Software Industry (ATSI), the Thai Software Export Promotion Agency (TSEP), the Thailand Animation & Computer Graphics Association (TACGA), and the Technology Management Center (TMC).
It would be easy for the stakeholders in the Thai software industry to use the political turmoil in Thailand as an excuse to sit back and wait.
But the reality is that the software industry is one of Thailand’s best hopes for sustainable economic growth and job creation. Software developers have a remarkable ability to create large businesses fast — making a leap from a couple of entrepreneurs working from home to a legitimate, revenue and job-creating company in a few short years.
With this in mind, we must also continue applying pressure against those who flout Thailand’s copyright laws. We cannot allow political issues to hamper in any way the momentum Thailand has generated in reducing its software piracy rate.
On May 11, the Global Software Piracy Study revealed that Thailand’s software piracy rate fell by one percent in 2009. This is the third consecutive year in which piracy rates have fallen, and the national software piracy rate now stands at 75 percent. The Department of Intellectual Property and the Economic Crime Police (ECD) deserve appreciation from the software industry for their efforts.
But these efforts to reduce software piracy must continue, despite the political climate, until Thailand’s piracy rate is at least on par with the average rate of piracy in Asia-Pacific at 59 percent.
It is a little known fact that software piracy has just as much impact on Thai software developers as it does on international software companies. While international developers have other markets in which to off-set the theft of their intellectual property rights, Thai developers are left with a domestic market in which 75 percent or more of their products are stolen. Not only that, but Thai software developers also have to compete against pirated products. This is a recipe for extreme hardship, and has crippled more than a fair share of Thai software start-ups.
Some industry experts call for campaigns designed to promote software made in Thailand. As a local software developer myself, I greatly appreciate these good intentions. But I also seriously question how effective a “made in Thailand” campaign can be when pirated software of all types and origins is so readily available. The fact is that Thailand’s home-grown software industry will not prosper until we have software piracy under control.
Working in a state of crisis has, unfortunately, become the norm for software developers in Thailand. But it is certain that one day this crisis will end, and that Thailand will once again take its place among the most dynamic, free-wheeling economies in Asia. When we emerge, stronger and better, we need to be ready.
Inspired software developers and entrepreneurs must be ensured that effective protection and enforcement of the intellectual property rights are in place for them to innovate, start businesses, create jobs and, hopefully one day, build highly successful software products. Upholding software IP laws will help to sustain the software industry in times of crisis.
The economic impact of the latest political crisis is a major challenge for the health of the software industry; the added burden of piracy should not be accepted. A 2008 BSA/IDC study looking at the economic impacts of piracy found that lowering software piracy by ten percentage points over four years could create 2,100 new high-quality jobs and 33 billion baht in software industry revenues. In addition, IDC estimates that for every dollar of legitimate software sold in a country, there are another $3-$4 of revenue for local service and distribution firms. These local firms generate tax revenue for governments, and are a source of pride for their own nations.
The Thai software industry just recovered from the most severe global economic recession in twenty years, and now finds the economy damaged by political unrest. As
an antidote, the Thai government and software industry leaders must continue to engage with businesses and consumers about the risks of violating copyright laws for software – and the true impact that software piracy has on Thailand’s economy. When Thailand emerges from this political crisis, we need to make sure that our software industry stays competitive in the region. To achieve this, we need to continue to support the industry in these challenging times.
(Somporn Maneeratanakul is Vice President of the Association of Thai Software Industry and Managing Director of Thai Software Enterprise Co., Ltd., a Thai software company founded in 1998.)