Outsourcing firm shut down for using pirated software

Courtesy: http://www.abs-cbnnews.com/

The Anti-Fraud and Commercial Crimes Division (AFCCD) of the Philippine National Police’s Criminal Investigation and Detection Group (CIDG) seized a total of 173 computers during a raid against Pinoy Data Capture Inc. in Makati City last week, putting the latter’s operations to a virtual standstill.

The search warrants were issued by Manila Regional Trial Court Vice-Executive Judge Cielito Mindaro-Grulla for the alleged violation of Republic Act 8293 or the Intellectual Property Code of the Philippines.

Pinoy Data Capture Inc. (PDC), with its office at the 30th floor of Burgundy Corporate Tower in Sen. Gil Puyat Ave., Makati City, was reportedly using computers with unlicensed and pirated software in its business operation.

PDC is a business process outsourcing (BPO) company that provides data conversion, medical coding, contact center and software development services for clients in the Philippines and the United States.

The police operation involved the software audit of each computer and server, and then check against software licenses that were presented by the company to determine the legality of the software. PDC had to stop its operation and send home their employees to avoid disruption to the inventory and seizure procedure of the raid.

Anti-piracy operatives found 173 of the company’s computers loaded with unlicensed and pirated copies of Adobe and Microsoft software, with an estimated value of almost P9 million.

“All computers found loaded with unlicensed and pirated software were seized and will be kept in police custody for use as evidence in court,” said Senior Superintendent Joel Orduña, chief of the PNP-CIDG-AFCCD.

He added: “This raid should serve as a warning to other businesses that continue to use unlicensed software. Software piracy may not only result in serious legal consequences, it can also completely paralyze business operations.  That unlicensed software was found in PDC’s business operation truly casts a shadow over the country’s aspiring BPO industry.”

The raid on PDC is part of the Pilipinas Anti-Piracy Team's ongoing nationwide campaign against businesses using unlicensed and pirated software. The PAPT had earlier given businesses 20 days to legalize their software, after which, members of the PAPT including the NBI, OMB and PNP conducted random and routine inspections and raids on businesses that were allegedly infringing on software copyright.