K-brand IP protection MoU signed with Shopee

Intellectual property (IP) infringement issues have grown in tandem with the global e-commerce market, which expanded in value from US$2.9 T in 2018 to US$5.8 T in 2023, an average annual growth rate of 14.6%. According to the World Intellectual Property Organisation (WIPO), intellectual property infringement cases through e-commerce increased approximately 2.5x in 2023 compared to 2018. The Asian and Latin American regions showed the highest proportion of counterfeit product distribution. Korean products have become major targets due to their brand value and scarcity. 

The Korea Intellectual Property Protection Agency (KOIPA) has been particularly concerned. According to an Organisation for Economic Co-operation and Development (OECD) report, the scale of counterfeit products infringing Korean companies' IP rights reached approximately US$9.7 B globally as of 2021, equivalent to 1.5% of Korea's total exports. This resulted in Korean companies losing sales of US$6.1 B, and the loss of 13,855 manufacturing jobs. 

This has led to work with major e-commerce platforms like Shopee as they play a crucial role in strengthening K-brand protection. KOIPA's Director Kim Yong-seon recently announced that a memorandum of understanding (MOU) at Shopee's Singapore headquarters on June 24. Building upon the original MOU signed in 2020, this renewed agreement encompasses significantly expanded cooperation to protect Korean brands and sellers in the region, including offline enforcement linkages for fundamental solutions to counterfeit product distribution. 

The MOU consists of three major cooperation areas: 

Strengthening the response system for intellectual property infringement of Korean brands

Shopee will collaborate with KOIPA to provide easy access for monitoring and reporting of suspected IP infringements involving Korean brands, in accordance with agreed protocols.

Offline enforcement collaboration to block counterfeit product distribution 

To overcome the limitations of online anti-counterfeit enforcement and to strengthen efforts to prevent the distribution of counterfeit goods, both parties agree to explore and implement joint response measures when necessary.

Expand educational activities to raise awareness of intellectual property protection 

Both organisations plan to jointly conduct education and awareness-raising activities to improve intellectual property protection consciousness among both sellers and consumers. 

Kim emphasised: "We are pleased to establish a cooperation system for K-brand protection with Shopee, the leading e-commerce platform in Southeast Asia and Taiwan. We will actively support our companies' overseas expansion and export activities by expanding cooperation with other major global e-commerce platforms.”

“Shopee is proud to renew and strengthen our partnership with KOIPA to better safeguard Korean brands in our region,” said Ian Ho, VP at Shopee. 

“As e-commerce continues to grow, it is more important than ever to work closely with trusted partners like KOIPA to enhance IP enforcement and build a secure and trustworthy environment for all users.”

Source: Shopee. Changho Son, Director General of KOIPA (left) and Ian Ho, VP at Shopee (right) at the MoU signing on 24 June 2025 at Shopee Singapore. The MoU covers the strengthening of IP protection for Korean brands in Southeast Asia and Taiwan.

Premier League, StarHub unite to combat piracy in Singapore

Source: Premier League. Premier League stars are helping to raise awareness of the dangers of illegal streams in the Boot Out Piracy campaign. Becker of Liverpool.

With the Premier League 2024/25 season under way, the Premier League, in collaboration with its local broadcast partner StarHub, is continuing its action to educate consumers about the dangers of accessing pirated content and to combat illegal streaming in Singapore. 

The League’s Boot Out Piracy campaign for this season brings together some of the biggest names in football — Alisson Becker (Liverpool FC), Alejandro Garnacho (Manchester United), Jean-Philippe Mateta (Crystal Palace), Hwang Hee-chan (Wolves), and Bukayo Saka (Arsenal) — to address the dangers of illegal streaming. 

Through a series of videos distributed across digital platforms, these players speak directly to Singaporean fans, warning them of the significant risks associated with accessing Premier League content through unauthorised channels. This campaign follows a recent study by cybersecurity expert Professor Paul -Watters, which highlights the serious risks associated with illegal sports streaming - cybercriminals are exploiting illicit sports streaming sites, putting Singaporean consumers at risk of identity theft and fraud through browser hijacking, malware and misleading ads. 

The August 2024 research examined 25 popular illicit sports streaming sites in Singapore, and found that almost two thirds (65.6%) of advertisements on these platforms are classified as “high-risk”, which significantly increases the likelihood of exposure to malware or fraudulent scams. The risk of encountering malicious activity on these platforms is 44%. 

Premier League General Counsel Kevin Plumb said: “We know how passionate our fans are in Singapore and across Asia, staying up late to follow the latest Premier League action. We also know the risks and dangers of watching matches through illegal streams and want supporters to enjoy Premier League content in the best quality and safest way through authorised sources. 

“As well as promoting important messaging, we are working harder than ever with Singapore’s law enforcement authorities and our partners at StarHub to enforce legal measures and take action against piracy. This includes collaborating with StarHub to identify and shut down piracy syndicates and working together with local authorities to address the distribution of illegal streaming devices. 

“We encourage fans to protect their online safety and to enjoy Premier League matches via authorised platforms, which will provide the best viewing experience.” 

Professor Watters remarked: “The research findings underscore the urgent need for online users to stay vigilant and avoid platforms that stream pirated content. Users may be under the impression that these sites are harmless, but cybercriminals are always planning to launch cyberattacks such as data breaches, ransomware and malware, putting users at significant risks. The Premier League’s Boot Out Piracy campaign helps make these risks clear to fans in Singapore.” 

As the exclusive broadcaster of the Premier League in Singapore, StarHub has a pivotal role in the Boot Out Piracy campaign. “As the Home of Sports, StarHub is dedicated to providing fans with the best possible viewing experience. We firmly believe in the importance of protecting our content from piracy,” said Johan Buse, Chief of Consumer Business Group, StarHub. 

“Piracy undermines our industry and threatens the future of sports content. By prioritising content protection, we ensure that fans can enjoy their favourite sport in a safe, secure environment. StarHub is proud to support Premier League's Boot Out Piracy campaign, and we are committed to fostering a vibrant sports community where every moment is valued and celebrated. Together, we urge fans to enjoy the game through legitimate channels, safeguarding the future of football for everyone." 

The Premier League has been working closely with local law enforcement to crack down on illegal streaming services in Singapore. Most recently a man who sold illegal streaming devices at Sim Lim Square in Singapore was sentenced to 10 months’ jail, following investigation carried out in collaboration between the Premier League, the Singapore Attorney-General Chambers, and the Intellectual Property Rights Branch of the Singapore Police Force. 

As part of its broader strategy to protect its content and safeguard the intellectual property rights of local broadcasters, the Premier League has been conducting site-blocking efforts aimed at identifying and blocking access to websites that stream football matches illegally. A total of over 560 domains in Singapore have been blocked by the Premier League. The Boot Out Piracy campaign will be showcased across broadcast channels and social media platforms in Hong Kong, Indonesia, Malaysia, Singapore, Thailand and Vietnam in the upcoming months.

TV boxes popular in Thailand, still available in Singapore

Fifteen percent of Singaporean consumers use a TV box which can be used to stream pirated television and video content. These TV boxes, also known as illicit streaming devices (ISDs), allow users to access hundreds of pirated television channels and video-on-demand content, usually with a low annual fee. TV boxes often come preloaded with pirated applications allowing 'plug-and-play' access to pirated content.

The survey found that MyIPTV, UBTV, WorldTV, MoonHD, and Infinity TV were some of the most popular illegal applications amongst Singapore consumers.

The survey, commissioned by the Asia Video Industry Association’s (AVIA) Coalition Against Piracy (CAP) and conducted by YouGov, also highlights the detrimental effects of streaming piracy on legitimate subscription video services. Of the 15% of consumers who purchased a TV box for free streaming, more than one-quarter (28%) asserted that they had cancelled their subscriptions to a Singaporean-based online video service as a direct consequence of owning an ISD. Nearly one in five (18%) Singaporean users in the same segment have abandoned international subscription services in favour of ISD purchases.

Of those Singapore consumers who own an ISD, more than half of respondents (62%) claim to have purchased their illicit streaming device from two of the largest Southeast Asia-based e-commerce stores*. More than one-fifth of ISD owners (21%) say they acquired their devices via one of the world’s most popular social media platforms**. Over one-third (38%) of ISD owners said they purchased their pirate TV box from IT exhibitions or physical retail stores in Singapore.

Neil Gane, GM, CAP said, “The overt availability of ISDs in Singaporean malls and IT exhibitions is a major concern for the content industry. Unfortunately, there is no one silver bullet to deterring piracy due to the fragmented nature of the ecosystem. What is required is an holistic solution to include enforcement, cooperation with technology platforms and intermediaries, disabling access to pirated content through effective site blocking and consumer outreach”.

In late November AVIA announced the landmark November 2 High Court injunction ordering Singapore’s Internet service providers to block access to popular illegal applications that are frequently preloaded on ISDs sold in Singapore.

As a consequence of these High Court orders, Gane added, “Consumers are wasting their money when purchasing new subscriptions to illegal applications when they find their ISD can no longer access live sports matches or their favourite TV shows. CAP will continue to prevent and disrupt illegal feeds of live sports, TV channels, and VOD content through judicial blocking orders against piracy applications. ISDs can never provide quality programming and a service guarantee.”

Singapore currently has over a dozen online legal services providing an array of live sports, TV channels and video-on-demand content at varying pricepoints.

In mid-November, AVIA released similar results for Thai consumers that revealed 45% of consumers use a TV box which can be used to stream pirated television and video content.

The survey found that Mango TV, HD Playbox and U Play are among the most popular pirate applications amongst Thai consumers.

Of the 45% of consumers who purchased a TV box or dongle for free streaming, more than two in three (69%) stated that they cancelled all or some of their subscription to legal pay TV services. Nearly a quarter (24%) said that they cancelled their subscriptions to a Thai-based online video service as a direct consequence of owning an ISD. International subscription services, which include pan-Asia online offerings, were impacted the most - nearly one in three (30%) Thai users have abandoned subscriptions in favour of ISD purchases.

Cancelling legitimate subscription services and replacing them with pirated content is risky, said Gane at the time of the announcement. 

"The damage that piracy does to the creative industries is without dispute. However, the damage done to consumers themselves, because of the nexus between content piracy and malware, is only beginning to be recognised. Piracy websites and applications typically have a 'click happy' user base, and, as such, are being used more and more as clickbait to distribute malware. Unfortunately the appetite for 'free' or cheap subscription pirated content blinkers users from the very real risks of malware infection".

Of consumers who own an ISD, about half of respondents (47%) claim to have purchased their ISD from two of the largest Southeast Asia-based e-commerce stores*. Close to one-third (31%) of ISD owners say they acquired their devices via one of the world's most popular social media platforms**.

In addition to the short-term problem of cancelled subscriptions is a longer-term problem. The survey found that ISDs are particularly favoured among 18- to 24-year-olds, with more than three in four (77%) cancelling legitimate subscription services as a result of owning ISDs. Forty percent of the cancellations were of international online subscriptions.

The Thai Department of Intellectual Property (DIP), Ministry of Commerce, who oversees the Copyright Act, commented that "to enhance the efficiency of enforcement action, the DIP has proposed the amendment of the Copyright Act by adding provisions on the manufacture, sale, import, or traffic into the country of devices or any parts or components of a device, for the purpose of circumventing a technological measure.

"These amendments were approved by the Cabinet on 16 October 2018 and will shortly be presented to the State Council. The amendments are explicitly targeted at the manufacture and distribution of pirated TV boxes. This is a crucial step to address the current piracy problem".

Sompan Charumilinda, Executive Vice Chairman at cable and satellite operator True Visions, listed a number of concerns. "First is the danger to consumers through the use of malware and spyware embedded in these illicit sites and applications. Second is that supporting these criminal enterprises does real damage to legitimate businesses that are struggling to survive. Third, it also undermines the Thailand 4.0 initiative and the country's aspiration to become counted among the world leaders in the new digital economy by showing Thailand to have made little progress in terms of its acceptance and tacit approval of these criminal networks.

"Consumers should care about piracy personally because of the harmful effects of malware and spyware, and also because of the damage that it does to our country. As a leading media company in Thailand we are happy to work with the Department of Intellectual Property, CAP and all relevant stakeholders to help continue to educate the public about these dangers," he said.

A growing concern from the anti-cybercrime community remains the nexus between online piracy and pernicious malware such as spyware, malware mining and ransomware. In September 2018, the European Union Intellectual Property Office released a report entitled Identification and Analysis of malware on selected suspected copyright infringing websites which found that most of the documented malware on piracy sites were Trojans or other malware which, when installed on an end-user’s, computer would cause “not only financial losses, but also theft of personal data and other risks of unwanted access and control”.

AVIA's Coalition Against Piracy (CAP) includes major video content creators and distributors in Asia. Members include: beIN Sports, Discovery, The Walt Disney Company, FOX Networks Group, HBO Asia, NBCUniversal, Netflix, Premier League, Turner Asia-Pacific, A&E Networks, Astro, BBC Worldwide, CANAL+, Cignal, La Liga, Media Partners Asia, National Basketball Association, PCCW Media, Singtel, Sony Pictures Television Networks Asia, TVB, True Visions, TV5MONDE, and Viacom International Media Networks.

Explore:

Piracy also affects software preloaded onto new PCs. Read the WorkSmart Asia blog post about the Microsoft PC sweep in Asia.

*According to ecommerce^iq, the most popular e-commerce sites in Singapore are Qoo10, Lazada and Zalora, in that order. Zalora focuses on fashion items. Ecommerceiq said the most popular e-commerce sites in Thailand are Lazada, Shopee and JD, in that order.

**SimilarWeb has the most popular social networks in Singapore down as Facebook, Instagram and then Twitter. SimilarWeb lists the most popular social networks in Thailand as Facebook, Twitter and then Instagram, in that order.

The cost of using unlicensed software

Findings in Software Management: Security Imperative, Business Opportunity, the 2018 Global Software Survey from BSA | The Software Alliance, complement the results of Microsoft's recent Asia PC Test Purchase Sweep, which showed that as many as four in five PCs (83%) come with pirated software.

Tarun Sawney, Senior Director – Asia Pacific, BSA, noted that unlicensed software continues to be widespread. Unlicensed software accounts for 37% of software installed on personal computers globally – a 2% drop from 2016. The commercial value of unlicensed software remains significant though it dropped 8% in constant currency, at US$46.3 billion globally.

While unlicensed software is a selling point for various merchants around the world, the BSA says that malware from unlicensed software costs companies worldwide nearly US$359 billion a year, and that CIOs say avoiding data hacks and other security threats from malware is the No. 1 reason for ensuring their networks are fully licensed. On the flip side, companies which implement a software asset management (SAM) and software license optimisation programme can increase profits by as much as 11% and save up to 30% in annual software costs.

Source: 2018 Global Software Survey from BSA. Rates of unlicensed software installation in the Asia Pacific region for 2017.

Sawney also shared that the Asia Pacific region has the world’s highest percentage rate of unlicensed software use and greatest amount of dollar losses. More than half (57%) of all software is unlicensed in the region. The commercial value of unlicensed software in this region fell to US$16.4 billion, compared to US$19.1 billion in 2015, but remains the highest in the world.

Within the region:

▪ Bangladesh has the highest rate of unlicensed software use at 84%, followed by Indonesia and Pakistan, both at 83%

▪ Japan and New Zealand, both at 16%, and Australia with 18%, have the lowest rates of unlicensed software use. All three economies registered a 2% decrease, which can be partly attributed to the growing use of the cloud and software subscription services among enterprises

▪ All Asia Pacific economies surveyed had showed a decline in the rate of unlicensed software use with China and Vietnam registering the biggest drops. China decreased its rate from 70% in 2015 to 66% in 2017, and Vietnam went from 78% in 2015 to 74% in 2017.

▪ Significant decreases in shipments (-22%) and installed base (down 17%) in Hong Kong and Singapore (-13% and -12% respectively) helped intellectual property protection efforts in both these economies

According to the survey, a decline in both enterprise PC shipments and the PC installed base, and a drop in the consumer share of PC shipments across many economies in the region, have influenced the statistics. Other factors include increased enforcement and legalisation efforts by governments in Asia Pacific, and an increase in the use of software-as-a-service (SaaS, or cloud) subscription models.  

Sawney introduces the BSA at Microsoft's Digital Trust Asia event in Singapore.

In the Middle East and Africa, unlicensed software rates are just behind that in Asia Pacific at 56%, but with the software valued at just over US$3 billion. In Yemen 88% of software is unlicensed, while in Iraq that figure is 85%.

Source: 2018 Global Software Survey from BSA. Rates of unlicensed software installation in the Middle East and Africa region for 2017.

Sawney explained that rates are falling partly because companies are more more aware of the risks now. There is a high correlation of 0.78 between unlicensed software and malware encounters in each country, the IDC study has found. The economic costs of addressing malware attacks are now at US$10,000 per infected PC in enterprises worldwide, he added.

"CIOs recognise the link between malware and unlicensed software. Previously they couldn't be bothered," he said.

Another reason could be legal consequences. He lauded China for opening courts dedicated to intellectual property cases, making those infringing software licences much more accountable. "In China these courts are making laws that is good IP law. Based on the decisions that they are making they are very effective. For the 1^st time we are seeing decisions that are consistent," he explained.

"Previously nothing happened, now you will be found out. There was a legitimate threat to them for using unlicensed software, not a cybersecurity threat, more of a legal threat."

Many factors have to come together to create the right environment for enforcement, he added. The legal system must move forward at the same rate as technology, and there have to be people specialised in intellectual property law, he said. In addition, courts have to have enough capacity to actually hear each case.

Explore:

The 2018 BSA Global Software Survey was released in June 2018. Download the report (PDF)

Read the WorkSmart Asia blog post about the PC Test Purchase Sweep

*BSA’s Global Software Survey, conducted in partnership with IDC, estimates the volume and value of unlicensed software installed on personal computers in 2017, across more than 110 national and regional economies. It also reveals key attitudes and behaviours related to software licensing, intellectual property, and emerging technologies based on a global survey of more than 20,000 respondents and nearly 23,000 responses from consumers, employees, and CIOs.

US releases Special 301 Out-of-Cycle Review of Notorious Markets for 2016

United States Trade Representative (USTR) Michael Froman has announced the findings of the Special 301 Out-of-Cycle Review of Notorious Markets for 2016, which highlights specific physical and online markets around the world that are reported to be engaging in and facilitating substantial copyright piracy and trademark counterfeiting.

“This Notorious Markets List illustrates the seriousness of copyright piracy and trademark counterfeiting in online marketplaces,” said Froman. “The 2016 List underscores the need for accountable governments everywhere to take on these forms of piracy and counterfeiting at every stage of the global supply chain to prevent final products that put health and safety of end-consumers at risk.”

Every year, the list includes online and physical markets in which pirated or counterfeit products and services are reportedly available, but does not constitute a legal finding of a violation or an analysis of the general intellectual property rights (IPR) protection and enforcement environment in any affiliated country or economy.

The list keeps track takes stock of emerging infringement models and adds stream-ripping sites and piracy apps to the list of the most damaging digital marketplaces. Stream ripping is the unauthorised conversion of content from a licensed streaming site into an unauthorised copy for distribution via download to the requester. Nearly 30% of Internet users obtain copies of music from stream ripping services, the report said, also noting that in 2015, digital music revenues surpassed physical sales for the first time, and streaming revenues—which grew more than 45%—were a major driver behind overall global growth. The trend has led to Youtube-MP3 being added to the Notorious Market List this year as an example of one of the "reportedly more popular stream ripping sites". Elsewhere, the report says that Streaming sites like Putlocker are "overtaking torrent and other piracy sites as the primary mode of movie and television piracy".

In addition, counterfeiters continue to take advantage of the popularity of online shopping to distribute counterfeit goods via small parcels which now comprise the most popular method of shipping counterfeit goods worldwide, the report stated.

The US encourages all responsible authorities to intensify efforts to combat piracy and counterfeiting, and to use the information contained in the Notorious Markets List to pursue legal action where appropriate.

The following digital marketplaces were either based in Asia Pacific and the Middle East or are popular with users from these regions:

Beevideo.tv
BeeVideo is an application allegedly developed in China that facilitates the viewing of allegedly infringing movies and television shows on smart TVs through set-top boxes, and on mobile devices. The app is available through the BeeVideo.tv website portal. BeeVideo has been downloaded more than 12 million times.

ExtraTorrent
ExtraTorrent from the Ukraine has Alexa rankings in India, Pakistan, and China of 170, 19, and 319 respectively, which reflect its popularity in these countries. ExtraTorrent has also been identified as a source of malware.

Gongchang.com
The GongChang platform specializes in industrial products and servicing manufacturers and retailers. GongChang is reportedly one of several online markets in China that are well-known for the sale of counterfeits, including counterfeit security tags that retailers affix to products as part of a shoplifting prevention system.

The problem with counterfeit security tags is that they may mislead customers into thinking that the goods they buy are actually authentic, or that the goods are protected when they can be easily shoplifted. "The sale of these counterfeits at the B2B level illustrates how significant quantities of counterfeit inputs can enter global supply chains," the report notes.

MP3va.com
This site is one of several based in Russia and Ukraine that is popular in India. It looks like a legal music download site, claims to be legal, but sells tracks for much less than the market rate.

Muaban.net
Muaban is a Vietnamese e-commerce platform that sells legitimate goods, but which stakeholders have also identified as offering counterfeit clothing and footwear. It has over 3 million page views each month.

MyEgy.to

MyEgy is one of the largest marketplaces for infringing video game and other copyrighted content in the Middle East. Stakeholders report that hundreds of new links to infringing video game files are posted to the site daily, and that the operator "is unresponsive to takedown requests". The MyEgy site, hosted in Russia and created by a web developer in Egypt, is in Arabic, offering content in both Arabic and English.

Nanjing Imperiosus Technology Company
Nanjing Imperiosus, based in China, is reported to disproportionately provide services to illegal online pharmacies.

Putlocker
Putlocker is one of the most-visited video streaming sites in the Asia-Pacific region for allegedly pirated movies and television shows. The operator of Putlocker is believed to be based in Vietnam and appears to be taking actions to evade enforcement measures.

Taobao
The Taobao.com e-commerce platform, one of the 15 most popular websites globally and among the top five websites in China, has a large volume of allegedly counterfeit and pirated goods available and has proved challenging when right holders try to remove and prevent illicit sales and offers of such goods.

The report details what Alibaba Group, the owner of Taobao, has done to clamp down on piracy, including the introduction of the Good Faith Program for IPR enforcement, but also said: "There is a reported significant disparity between the timeliness and effectiveness of Alibaba’s responses to complaints submitted by right holders in the Good Faith Program and those outside the programme. While recent steps set positive expectations for the future, current levels of reported counterfeiting and piracy are unacceptably high".

In response Michael Evans, President of the Alibaba Group said: "We are very disappointed by the USTR’s decision to include Taobao on its 'notorious markets' list, as we are far more effective and advanced in IPR protection than when the USTR took us off the list four years ago. The decision ignores the real work Alibaba has done to protect IP rights holders and assist law enforcement to bring counterfeiters to justice. The more than 100,000 brands that operate on Alibaba’s marketplaces cannot all be wrong – they are a clear demonstration of the trust that rights holders place in us. We question whether the USTR acted based on the actual facts or was influenced by the current political climate."

The Pirate Bay
The Pirate Bay is one of the longest-running and most vocal torrent sites for admittedly illegal downloads of movies, television, music, and other copyrighted content. It is currently hosted out of Vietnam to avoid enforcement.

Youtube-MP3.org
Stream ripping site Youtube-mp3 enjoyed 4.8 billion visits in the past year, and a country-specific Alexa ratings of 111 in Turkey. The site, which allegedly accounts for about 40% of the world’s stream ripping activity, is currently facing legal action.

Physical markets that carry counterfeit goods include:

China
Baiyun Leather Goods Market in Guangzhou, as well as shops in the Jin Long Pan Foreign Trade Garment Market in the same city; Chenghai District in Guangdong Province, reportedly a counterfeiting zone, as well as Wu Ai Market in Shenyang, Liaoning Province. In Beijing, counterfeit hotspots listed in the report include the Cheng Huan Cheng International Auto Parts Market, and the Silk Market.

Southeast Asia
Harco Glodok and Mangga Dua, two popular markets in Jakarta, Indonesia, as well as Ninh Hiep in Hanoi, Vietnam have been identified as alleged marketplaces which sell fake goods. MBK Center in Bangkok, Thailand and Rong Kluea near the border with Cambodia, appear to be the largest wholesale and retail market for counterfeit goods in Thailand, the report said.

India
Gandhi Nagar in Delhi is highlighted for counterfeit apparel while Burma Bazaar in Chennai is highlighted for a wide variety of counterfeit goods and pirated media discs. Kashmere Gate, also in Delhi, is an example of a market allegedly selling counterfeit auto parts.

Interested?

Read the Special 301 Out-of-Cycle Review of Notorious Markets report for 2016

Read more about Evans' views on the report

Singapore raid uncovers fake software sold as the genuine article in Asia Pacific

A fake COA featuring the product name printed on the label with no anti-copy security features.

Microsoft has revealed that the case of a reseller in Australia caught for possessing counterfeit Certificates of Authenticity (COAs) and other counterfeit software and components has been traced back to a supplier in Singapore. 

COAs are stickers or labels that are usually attached to the retail packaging of products such as Windows, Office or Windows Server to certify the software’s authenticity. While COAs have no commercial value and cannot be sold independently, they give the impression that the pirated software is licensed and legitimate when it is not.

A genuine COA features the product name printed on the label and also contains anti-copy security features such as: an interwoven security thread – this is built into the paper and random paper fibres are visible when the thread appears at the surface – and colour shifting ink, which changes from green to magenta when viewed from different angles. 

Earlier this month, the Intellectual Property Rights Branch (IPRB) of the Singapore Police Force raided the reseller’s retail premises at Sim Lim Square, where over 1,000 pieces of counterfeit Windows 8.1 COAs and another 1,000 counterfeit software and counterfeit components, worth an estimated S$167,000, were seized. This marked the largest counterfeit COA seizure in Southeast Asia to date, and the biggest cross-border counterfeit COA case involving Singapore.

Detailed investigations over the past few months has yielded evidence that the reseller has been distributing large quantities of counterfeit COAs to new and refurbished computer resellers located in Singapore and overseas. These resellers would then mislead consumers into believing that the pirated software installed in their devices are genuine. 

In this case, Microsoft was alerted by its team in Australia who had been investigating the case of a reseller selling over 500 pieces of fake COAs. The team subsequently traced this back to the the perpetuator in Sim Lim Square in Singapore.

Following the raid, Microsoft has issued an advisory to remind consumers and small businesses to be wary of hugely-discounted software offered by resellers, and to purchase software only from authorised retailers to avoid the unintentional purchase and use of counterfeit software. This advisory is also especially timely for consumers as Windows 10 will be available as a free consumer upgrade to qualified new and existing devices running genuine Windows 7, Windows 8.1 and Windows Phone 8.1.

Genuine software typically carry COAs featuring the product name printed on the label and containing anti-copy security features such as interwoven security thread and colour-shifting ink edge. 


"COAs deploy numerous security features that are usually hard to replicate but if the consumer does not pay attention, they may not realise what they had purchased is counterfeit and would have paid good money for fake software. As such, consumers must be extra vigilant when making their computer purchases. We strongly encourage consumers to make their purchases from a reputable computer dealer and insist on only genuine software in order to avoid any potential issues in the future,” said Jonathan Selvasegaram, Corporate Attorney, Digital Crimes Unit, Microsoft Asia.

“Software piracy has evolved and we are now seeing cross-border cases such as this where the fake COAs were found in Australia before tracing it back to the source in Singapore. While the motivation factor for purchasing counterfeit software in emerging markets boils down to cost, the situation in developed markets such as Singapore are different as we are seeing consumers being duped in believing that the software they are purchasing are genuine. Software piracy remains a major concern for everyone, because of the damage it could cause for unsuspecting users. Such software could expose computers to spyware, malware and viruses that can lead to identity theft, loss of personal data, and unexpected system failures. The risk is also very real for businesses as operational disruptions caused by malware and viruses could potentially lead to heavy financial losses for them.” 

According to data collated by the Microsoft Cybercrime Satellite Centre in Singapore, which serves as the Asia Pacific hub for Microsoft’s Digital Crimes Unit to undertake cybercrime and cybersecurity initiatives in the region, more than 4.1 million malware pings have already been detected from 8,400 Singapore IP addresses in this week alone. These pings indicate attempts by malicious botnets installed in these computers to contact the cybercriminals that are controlling them, presenting imminent threats to consumers and businesses located here. 

Additional analysis of the data revealed that the current top threat in Singapore and Southeast Asia is posed by the Bladabindi/Jenxcus (B106) botnet – a malware family that has the ability to steal sensitive information from users. If the malware is not being actively disrupted, unsuspecting consumers and businesses could face the potential loss of important information that might fall into the hands of malicious cybercriminals.

Separately, a joint study conducted by International Data Corporation (IDC) and the National University of Singapore (NUS), titled 
The Link Between Pirated Software and Cybersecurity Breaches, released in March last year, found that enterprises in Asia Pacific (APAC) are expected to spend nearly US$230 billion to deal with issues caused by malware deliberately loaded onto pirated software. The majority of the cost (US$170 billion) will go into dealing with data breaches, while the remainder will be utilised to deal with security issues. In addition, the study revealed that 65% of APAC consumers survey said their greatest fear from infected software is the loss of data, files or personal information, followed by unauthorised Internet transactions (48%) and potential identity theft (47%).

”The majority of businesses in the Asia-Pacific region do not have a full understanding about the security and malware risks that counterfeit and unlicensed software brings, and that needs to change with urgency. According to our BSA Global Software Survey conducted last year, a striking 62% of software installed on computers in this region in 2013 were not properly licensed – this represents a 2% increase over the same figure in 2011. While Singapore has one of the lowest rates of unlicensed software use in the Asia-Pacific region, it is still important for both consumers and businesses to be vigilant in face of the rising security threats and increasing sophistication of cybercrime across the world,” said Tarun Sawney, Senior Director – Asia-Pacific, BSA | The Software Alliance.

Singapore has one of the most stringent copyright laws where offenders, if found guilty in the court of law for the manufacture for sale, sale of infringing copies and possession or importation of infringing copies, are liable to a fine not exceeding S$10,000 for each infringing copy, up to a total of S$100,000 per charge, or imprisonment for up to five years. Offenders may also be liable to both a fine and imprisonment if found guilty.

Interested?

Verify the origin of Microsoft products at the Microsoft website.

Read the WorkSmart Asia blog post about a Microsoft raid in 2014.

Read the TechTrade Asia blog post on IDC-NUS study about the cost of malware in pirated software.

Six in 10 software installations in APAC are unlicensed

The rate at which PC software was installed without proper licensing in Asia Pacific was 62% percent in 2013, the highest such rate across the world, and amounting to US$21 billion in lost revenues, says the BSA Global Software Survey. 

In the Middle East and Africa, the percentage was 59%, compared to 60% in Central and Eastern Europe and 59% in Latin America. North America scored 19%, Western Europe 29%, to arrive at a global average of 43%.

The chief reason computer users around the world cite for not using unlicensed software is avoiding security threats from malware, says the BSA. Sixty-four percent of users globally fear unauthorised access by hackers as their top concern and 59% cited loss of data. 

While IT managers around the world did express concern that unlicensed software may cause harm, fewer than half say they are 'very confident' that their company’s software is properly licensed. Only 35% of companies have written policies in place requiring use of properly licensed software, BSA found.

“Users realise that unlicensed software can introduce malware and leave them vulnerable to hacker intrusion and data loss, yet many fail to do anything to protect themselves or their organisations. Given that the global cybersecurity threat environment has been worsening, this lack of attention to software compliance is deeply worrying,” said Roland Chan, BSA Senior Director of Compliance Programs, Asia Pacific.

According to a recent report from the Economist Intelligence Unit, more than 75% of organisations suffered a security incident in the past two years that caused major system disruptions or resulted in loss or theft of sensitive data. BSA member Symantec labeled 2013 the “Year of the Mega Breach” and noted that there was a 62% increase in the total number of data breaches from the previous year, with eight of the breaches that occurred exposing more than 10 million identities each.

“To prevail, organisations must manage and optimise their software assets properly to derive the greatest possible value from them,” added Chan.

Among the findings in BSA’s Global Software Survey: 

• Most economies in the Asia Pacific region made some progress, including China, where 74% of PC software was installed without proper licensing in 2013, down from 77% in 2011. 
• The aggregate rate of unlicensed installations in the region rose, as the biggest and fastest-growing markets were those where the rates of unlicensed software use were significantly above the regional mean; their size drove an increase in the average for the region as a whole. 
• In the Middle East and Africa, the regional rate rose to 59% percent in 2013 against 58% in 2011, with a similar dynamic to that in Asia-Pacific. 
• Yemen scored the worst with 87% of software installations in 2013 being unlicensed, and UAE had the lowest score of 36%. Paradoxically, the value of the software concerned amounted to US$9 million in Yemen, but US$230 million in the UAE, pointing to a widely different mix of software in use in both countries. Turkey however had the most unlicensed software downloaded in terms of commercial value for the Middle East and Africa region - US$504 million in 2013.
• The pattern was similar for Japan, which scored the lowest at 19% of software installations being unlicensed, against Bangladesh being the worst offender at a rate of 87% of software installations being unlicensed. The commercial value of the unlicensed software amounted to US$197 million in Bangladesh, and in Japan, US$1.3 billion. The value of unlicensed software for 2013 was highest in China for Asia Pacific, coming to nearly US$8.8 billion.

BSA’s Global Software Survey is available here. Real-time threat attempts can be viewed here.

*Graphs from BSA.