HK pirates beat Microsoft to the punch

By CNN's Kristie Lu Stout

HONG KONG, China (CNN) -- Hong Kong shops are selling pirate copies of Microsoft's Windows XP operating system, months ahead of its scheduled October 25 launch.

Computer shops in districts throughout Hong Kong are also peddling pirated versions of Microsoft's new Office XP software that is due to launch officially in the territory Tuesday.

Microsoft's Hong Kong office told CNN that consumers should be wary of the pirated versions on the market since they are virus-laden copies of its beta product.

No guarantee

The pirate discs retail in Hong Kong for around $13, a fraction of its $603 price tag for authorized copies.

"It is most likely these are beta discs and not the final product, so that won't be good for customers who buy it," Microsoft Hong Kong spokesperson Bridget Yau said Tuesday.

"For people who buy the Office XP product we are launching today, they have 90-day support and a guarantee that it is virus-free."

Asia's software piracy rate rose to 51 percent in 2000 from 47 percent the previous year, according to a study by the Business Software Alliance (BSA), an anti-piracy group representing the world's leading software makers.

The region currently accounts for software piracy losses of about $4.1 billion.

Piracy on the rise

Software piracy has been on the rise in Hong Kong despite efforts by the government and business groups to crush the practice.

About 56 percent of software used in Hong Kong was pirated in 1999, according to the BSA study.

Last year, the figure nudged up to 57 percent.

Howard Digby, Adobe director and Hong Kong BSA chairman, says Hong Kong's rampant piracy will damage efforts in localized software production.

"Any local company that wants to set up a company, or any venture that wants to create a word processor for a certain market -- they are not going to sell anything because of piracy," said Digby.

"This also opens up a real problem for the consumer."