Hangzhou Promises Clampdown on Illegal Software for Microsoft

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May 18 – China’s east coast city of Hangzhou has promised to step-up enforcement of anti-piracy laws in exchange for investments from Microsoft.

The city has laid out specific targets for enforcement and will encourage local companies to use legitimate programs.

Microsoft’s investment plans in the city include two new technology centers that should make Hangzhou an example for the country as a place where intellectual-property rights are stringently implemented.

“We wanted to find a showcase,” Simon Leung, Microsoft’s chief executive for Greater China told The Wall Street Journal. “The city had to be committed to doing the right thing.”

Hangzhou’s pledge to clampdown on piracy is seen as a good move in distinguishing itself from other Chinese cities looking to attract more foreign investment.

In the past, Microsoft has called for stricter enforcement of software piracy rules from Beijing to no avail. Technology companies have cited piracy issues as one of the top concerns when deciding to invest in China.

This the company’s new tactic to address the problem. Last year, Microsoft tried curbing the proliferation of illegal Windows operating system by sending out software updates that would render computer wallpapers black but the move illicited ire from local users.

The latest news in Microsoft’s anti-piracy campaign came in January when a local  court declared 11 people guilty of manufacturing and distributing counterfeit Microsoft software.

Details of how much Microsoft is investing in Hangzhou is not available although it is said that it will go beyond the US$1 billion over three years that Microsoft said last November that it plans to spend on research and development in China.