Local Market Flooded by Pirated Products

VIVAnews - Pirated products are dominating the Indonesian creative industry. The number of pirated optical products in domestic market reaches 84 percent. The situation has placed Indonesia on 12th position out of 108 countries that violate intellectual property rights.

Director General of Intellectual Property Rights (HAKI) at the Department of Justice and Human Rights, Andy Noorsaman Sommeng, said globalization and trans-national free trade should have boosted competition and innovation.
 
Creative industry, based on date of trade, contributed to the gross domestic product by 6.28 percent, higher than last year's national growth of 5.6 percent. Based on a research conducted by the Department of Trade, the productivity of creative industry workers calculated using the Rupiah reached Rp 19.5 million (US$1,600) during 2002-2006, exceeding the national productivity, which was less than Rp 18 million.

"The industry is dealing with several challenges concerning pirated products. Pirated optical products such as CDs, VCSs, DVDs are still dominating the market," he said on Wednesday, March 18.
 
In Indonesia, at least 27 factories are producing optical media with annual capacity of 108.5 million discs and it keeps on increasing. However, the number of software piracy is quite large, reaching 84 percent in 2007.
 
Survey of International Data Corporation (IDC) and Business Software Alliance (BSA) showed that in 2007 Indonesia managed to improve its ranking on the protection of intellectual property rights from eighth to twelfth.

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Translated by: Bonardo Maulana Wahono