Without piracy, Brazil can develop

By ETCO
28/05/2012

Source: Jornal Brasil Econômico - 02/04/2012

Brazil, with a strong economy, has an industry that increasingly uses Information Technology (IT) as a business differentiator. Not only is the use of IT growing in the country, but also the development and manufacture of hardware and software.

While Brazil and other emerging markets are both consumers and IT granaries, the United States has recently taken an important step towards fostering an enabling environment for companies that correctly use information technology.

The states of Washington and Louisiana have adopted laws that classify products from industries that gain competitiveness by using an unlicensed IT base as unfair competition.

There are also general unfair competition laws, according to which manufacturers must be fully compliant with IT licenses. In more than 30 states, the equivalent of the prosecutor applies laws to prevent companies from benefiting from illegal practices to reduce costs

This movement should be seen as an opportunity by the BRICS - Brazil, Russia, India and China - above all, by Brazil.

Explains yourself. According to the 2010 IDC-BSA Global Software Piracy Study, released in May 2011 by the Business Software Alliance, among the BRICS, Brazil has the lowest rate of software piracy, 54%.

China leads (78%), followed by Russia (65%) and India (64%). Although Brazil is far from economies with low rates of illegal IT use (average rates of 30%), among the BRICS, it has a greater chance of reaching these rates and expanding the competitiveness of its industry.

The effort is for a positive agenda. And that is possible. Even before the new American laws, several countries have reduced rates of IT piracy, either by showing that the original product gives guarantees, or by curbing the use of pirated products.

In Brazil, where a series of federal, state and municipal laws regulate the matter, the reduction was 10 percentage points between 2005 and 2010, according to the BSA study.

Today, the USA is the main export destination for many Brazilian products. Internal IT legalization policies will differentiate these companies in the global business environment.

The benefits are clear: fairer and more aligned market for manufacturers, differentiation from competitors in accessing the American market, improved reputation with international partners, reduced risk of legal penalties and guarantee of a secure structure to support business.

For our society, the benefits will come in the form of innovation, the establishment of new companies and the creation of high-tech jobs in Brazil. A country with the capacity to cross borders and win on the global stage.

Roberto Abdenur is a diplomat and executive president of the Brazilian Institute of Competition Ethics (ETCO)