Using Licensed Software to Enhance Corporate Network Security and Reputation

 

Use of pirated software has been found to be a serious cause of network security breaches, data corruption and vital information loss in companies. Pirated software contains inherent flaws. Unlike original and licensed software, pirated software is not only illegal in the eyes of the law when used in a business environment, it may not even be the original quality product that is being sold by its creators, and it most certainly would not receive timely patches and security updates from the original publisher. The use of unlicensed software therefore exposes businesses to huge risks by endangering computers not only to malware and viruses, but possible security flaws that would allow access to hackers worldwide.

 

The download of illegal software through the internet may first appear to be an innocent enough gesture. However, whilst these users pay more attention to the software that is being downloaded, most would be oblivious to the fact that malware and other security threats could be downloaded concurrently. In 2008 and 2009, the Conficker super malware triggered widespread panic among computer users worldwide, and Vietnam ranked fifth amongst countries most affected by the malware.

 

Many security companies have called on businesses to treat network security as a priority matter, and to implement a robust information security management plan. The use of genuine software is the first, but critical step, in ensuring a secure computer network.

The risks associated to the use of illicit software go beyond security issues. Legal risks, as well as the possible negative impact on the company’s reputation, have not been fully taken into account by many businesses.

 

Firstly, the use of unlicensed software constitutes a criminal offence. Under Article 170a of the Penal Code, those who infringe upon the copyright or related rights on a commercial scale, under certain circumstances, may be imposed a fine of between fifty million and five hundred million dong, or is subject to non-custodial reform for up to two years. In cases of organized crimes or repeated crimes, penalties are even more severe, with the infringer being liable to a fine of between four hundred million dong and a billion dong, and/or imprisonment of between 6 months to 3 years.

 

Secondly, copyright owners also have at their disposal, other remedies to address the infringement of their intellectual property rights. Copyright owners can either commence legal proceedings before a competent Court pursuant to Article 198.1d of the IP Code, and/or to request the Court to require the infringer to cease infringement, make official apologies and rectification, and request the infringer to pay for damages including material damages, as well as appropriate attorney fees under Articles 202, 204, 205 of the IP Code. The level of damages would be determined on the basis of the actual losses suffered by the intellectual property right holders, due to the infringement of their intellectual property rights.

The world is getting smaller when it comes to trade. With global competition, the key to success is determined by productivity levels, and being ahead of the competition. Whilst the use of software is often associated with productivity, the converse is linked to financial risks and survival. Earlier this year, a Japanese company which was found to have violated the copyright laws, ended up having to enter into a settlement agreement with the copyright owners for a whopping US$3.3 million. This case should serve as a timely warning to businesses, especially   foreign companies having representation or operations in Vietnam. While the parent companies of these entities may be using genuine software, such licenses may not be applicable in Vietnam.

Using legal software provides undeniable benefits to corporate users, as well as to software developers themselves. Besides, a strong intellectual property rights regime will provide the necessary rewards to spur innovation.