2. Intellectual Property Rights Software in Poland Tomasz Bochenek Dyrektor Generalny Microsoft Sp.z o.o.

3. Business Software Alliance The Business Software Alliance (www.bsa.org) is an organization dedicated to promoting safe and legal digital world. The Business Software Alliance (www.bsa.org) is an organization dedicated to promoting safe and legal digital world.www.bsa.org BSA programs are focused on education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce. BSA programs are focused on education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce. BSA members include Adobe, Apple, Autodesk, Avid, Bentley Systems, Borland, Cisco Systems, CNC Software/Mastercam, Entrust, HP, IBM, Intel, Intuit, Internet Security Systems, Macromedia, Microsoft, Network Associates, Novell, PeopleSoft, SeeBeyond, Sybase and Symantec. BSA members include Adobe, Apple, Autodesk, Avid, Bentley Systems, Borland, Cisco Systems, CNC Software/Mastercam, Entrust, HP, IBM, Intel, Intuit, Internet Security Systems, Macromedia, Microsoft, Network Associates, Novell, PeopleSoft, SeeBeyond, Sybase and Symantec.

4. Software piracy rates BSA report prepared by International Planning and Research Corp.

5. Software producers losses BSA report prepared by International Planning and Research Corp. [$M]

6. Economic impact study by IDC April 2003 10 points piracy rate reduction would bring $ 1.1B to the Polish economy 10 points piracy rate reduction would bring $ 1.1B to the Polish economy Impact from lowering BSA piracy rate by 10% (2.5% a year from 2002 – 2006) Impact from lowering BSA piracy rate by 10% (2.5% a year from 2002 – 2006) GDP increase - $ 1 130M GDP increase - $ 1 130M Local industry revenue increase – $ 700M Local industry revenue increase – $ 700M High-tech new jobs – 3214 High-tech new jobs – 3214 Additional tax revenue - $ 130M Additional tax revenue - $ 130M

7. International Intellectual Property Alliance Poland */ Business software applications data were based on first 3 quarters of year 2002 Final BSA data shows $ 137 million losses *

8. IIPA 2003 Special 301 Report Poland was elevated to the Priority Watch List Poland was elevated to the Priority Watch List Together with Lithuania and Russia in CEE Together with Lithuania and Russia in CEE With Lithuania the only UE country candidates With Lithuania the only UE country candidates Recent move to PWL driven mainly by piracy in music and movie area Recent move to PWL driven mainly by piracy in music and movie area

9. Anti-piracy Coalition Established in 1998 by: Established in 1998 by: BSA local committee (business software industry) BSA local committee (business software industry) FOTA – (local MPA representative –movie industry) FOTA – (local MPA representative –movie industry) ZPAV – (local IFPI representative – music industry) ZPAV – (local IFPI representative – music industry) Activities: Activities: Seminars & trainings for judges, prosecutors, police, customs etc. Seminars & trainings for judges, prosecutors, police, customs etc. Lobbying Lobbying Yearly awards: Golden Badges (Police – 6 years), Golden Barriers (Customs – 5 years) – great incentive – really works! Yearly awards: Golden Badges (Police – 6 years), Golden Barriers (Customs – 5 years) – great incentive – really works! PR activities & events PR activities & events

10. Anti-piracy Coalition Government Government Yearly reports concerning observance of copyright and related rights in Poland (since 2001) Yearly reports concerning observance of copyright and related rights in Poland (since 2001) Strategy of activities for intellectual property protection in Poland – accepted by Governement in August – goals and timelines for different authorities (incl. Ministries of: Internal Affairs; Finances; Justice; Culture) Strategy of activities for intellectual property protection in Poland – accepted by Governement in August – goals and timelines for different authorities (incl. Ministries of: Internal Affairs; Finances; Justice; Culture) Education Education Cooperation with the Ministry of Education Cooperation with the Ministry of Education Survey to be started in 1000 secondary schools in October Survey to be started in 1000 secondary schools in October Multimedia materials to be sent to secondary schools this Winter – introduction of IPR basics into school program Multimedia materials to be sent to secondary schools this Winter – introduction of IPR basics into school program

11. Anti-piracy Coalition Top 500 campaign Top 500 campaign DM awareness campaign – targetting 500 top listed companies and 180 universities in Poland DM awareness campaign – targetting 500 top listed companies and 180 universities in Poland Audit as a tool to sweep away illegal software, music & video files from computers/servers Audit as a tool to sweep away illegal software, music & video files from computers/servers 7 % response rate after 2 months – interested in audit tools & procedures 7 % response rate after 2 months – interested in audit tools & procedures Second DM wave (October) – GASP audit tool free offer Second DM wave (October) – GASP audit tool free offer P/R P/R 277 publications in 3 months: June - August 277 publications in 3 months: June - August

12. Bad news Warsaw Stadium Warsaw Stadium Internet piracy level increase Internet piracy level increase Delays in prosecuting criminal cases Delays in prosecuting criminal cases Level of criminal penalties not sufficient to deter piracy Level of criminal penalties not sufficient to deter piracy Weak border enforcement to halt flow of pirated products Weak border enforcement to halt flow of pirated products

13. Good news Very good police cooperation Very good police cooperation Significant criminal sentences issued by courts in software piracy cases: Significant criminal sentences issued by courts in software piracy cases: Kraków – corporate end user piracy Kraków – corporate end user piracy Gorzów Wlkp. – hard disk loading Gorzów Wlkp. – hard disk loading Few terminations due to „lack of social harmfulness” Few terminations due to „lack of social harmfulness”

14. Summary Poland is still being far behind EU and most of EU candidates in terms of piracy level Poland is still being far behind EU and most of EU candidates in terms of piracy level Progress in lowering piracy level in business Progress in lowering piracy level in business Increase in the area of individual consumers Increase in the area of individual consumers Low awareness of benefits from decreasing piracy Low awareness of benefits from decreasing piracy Good law – weak execution Good law – weak execution