Bsa Unveils Model Business Practices For Internet Auction Sites - Industry Trend or Event

EDP Weekly's IT Monitor, Dec 18, 2000

The Business Software Alliance (BSA) has issued Model Business Practices on Intellectual Property for Internet Auction Sites aimed at curbing the listing, sale and distribution of pirated and counterfeit software programs through Internet auction sites. As part of this initiative, BSA is recognizing Amazon.com as the first auction site to meet the standards set out in the model practices. In particular, BSA commends Amazon.com for its singular and proactive efforts in the area of self-monitoring and self-policing its auction listing for illicit software programs.

In particular, BSA commends Amazon.com for its singular and proactive efforts in the area of self-monitoring and self-policing its auction listing for illicit software programs.

"It is always a deep honor to be recognized for the thing we care about most - the customer experience," said Amazon spokeswoman Patty Smith. "Since the day we opened in 1995, Amazon.com has been extremely focused on customers and it is wonderful to have our proactive efforts be recognized as meeting the high standards set out in Business Software Alliance's "Model Business Practices."

BSA developed the Model Business Practices to protect consumers from acquiring infringing software programs at online auction sites, to promote an Internet culture which represents the rights, creativity and investment of intellectual property owners and to help staunch a problem that is undermining the market for legitimate software. During the 2000 holiday season, online sales, including auctions, are expected to double to $19.5 billion worldwide, and with an estimated 55 million Americans expected to shop online this holiday season, consumers need to be aware of the dangers of purchasing software on auction sites.

Auction site operators adhering to the Model Business Practices maintain comprehensive policies and practices regarding compliance with intellectual property rights.

Those practices include:

* Prohibiting sellers from offering infringing software.

* Taking responsibility for keeping illegal software off their site, including actively reviewing their site to identify and promptly terminate infringing auctions.

* Responding quickly and effectively to reports of infringing auctions.

* Posting prominent educational messages on their site.

"We are pleased to have Amazon.com's support for BSA's Model Business Practices on Intellectual Property Rights, said Bob Kruger, vice president of enforcement for the Business Software Alliance. "The true leaders in e-commerce recognize that protecting their customers from infringing goods is good business and good citizenship. BSA's hopes that other auction site operators will follow Amazon.com's example and assume responsibility for keeping pirated products off their sites."

The Model Business Practices were developed in response to the growing problem of pirated software on auction sites. BSA estimates that more than 90 percent of the software sold on auction sites is pirated, contributing to the $13 billion in lost revenues suffered by the industry annually. Recently, the Federal Trade Commission announced that Internet Auction Fraud is among the top ten online scams.

This announcement comes on the heels of BSA filing lawsuits in the United States and the United Kingdom and bringing enforcement actions in Germany in November. BSA charged dozens of individuals with selling pirated and counterfeit software on popular auction sites, including Yahoo, Ebay and two European auction sites, QXL and Ricardo. Each of the 13 defendants in the U.S. face damages of up to $150,000 per work infringed.