Planned Lebanese copyright law may double computer prices
Lebanon, Business, 7/22/1997

Computer prices could double if a copyright law being prepared by the government is enforced, dealers said on July 16.

The computer merchants warned that the cost of original software would have to be passed on to the consumer, increasing the already high price of the machines.

"A computer can easily cost 1,500 US dollars without software. If original versions of Microsoft Office, Windows 95 and some additional programs were installed, an extra 1,200 US dollars would be added to the price, effectively doubling it," said one Beirut computer consultant (who asked not to be named).

"People selling hardware must install pirated copies. Otherwise they would not sell any computers."

Lebanon, it is estimated, accounts for 1.4 million US dollars of lost software revenues according to a report by the software industry's trade association, the Business Software Alliance.

The Lebanese government decided to tackle the problem, to help in its bid to attract inward investment from software companies. Yassin Jaber, economy and trade minister said: "We have to position ourselves to abide by international laws and trade partnerships." But the problem is self-perpetuating. Software companies will not invest in an unregulated market by offering price incentives, and computer users will not pay high prices for programs which they can buy for a fraction of the cost as pirate copies."

Mohammed Jamal, a Lebanese trader, said, "Software in Lebanon is so expensive, in America you are paying for after-sale support and other services. Here prices are higher yet support does not exist. In other countries they offer introductory prices, but there are no such offers here in the Middle East."

"We need to stop piracy, but must take it affordable to customers and encourage people to use computers," he said.

Indeed, the government is recommending that an amnesty take place, where people with copied software can exchange pirated programs for legitimate ones at a reduced cost, and that a transitional period will be allowed before the law comes into force.

Jaber said, "We won't be targeting individuals and going to their homes to check their software9that would be crazy. There should be an amnesty and people will have to cooperate with the government."

But one pirate dealer (who asked not to be named) doubts the government will be able to end piracy. "A law is not enough to stop people from buying pirated software. People will still be able to get copies," he said. "At the moment most are imported legitimately through the airport; customs are even paid on them as they enter the country."

For instance, when Malaysian airways opened a direct flight to Beirut recently, the market was flooded with CD copies. "If a law is imposed then copied software will come via Syria, and no customs will be paid as it enters the country," he added.

When asked to quantify the different software being pirated, a dealer said that "it is mostly IBM PC Compatible sofware, although I have a Macintosh for my personal use. IBM PC compatibles are less expensive here and you can find more people who are familiar with them."

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