Aug 10, 2013

Police bust software piracy racket

KATHMANDU, AUG 10 -The police have busted a racket producing software using stolen source code in what would be the first-of-its-kind action against intellectual property theft.

As per the Central Investigation Bureau (CIB), the group had been developing software by revising the original code and selling the programme to domestic financial institutions. This is the first time the CIB has arrested people for stealing the source code, revising it and producing software similar to the original.

ACM Info Tech Nepal, Netlink IT Solution and College of IT Sansar were found to be involved in producing software developed using stolen source code, said the CIB.

The CIB’s investigation has revealed that ACM Info Tech had been selling the COMAN software that was created by modifying the source code of FINSYS software originally developed by Info Developers. Info Developers had developed the FINSYS software for domestic banking institutions and cooperatives.

Among those arrested are Palas Kumar Ghosh, Praman Raj Shakya of ACM Info Tech, Sunil Pote Shrestha of Netlink IT Solutions, and Saroj Suwal of College of IT Sansar.

The CIB said that Umesh Khatri, who was employed at Info Developers three years ago, provided the source code to Palash Kumar Ghosh, chairman of ACM Info Tech, which changed it and developed the COMAN software . ACM sold the software to 50 financial institutions at prices ranging from Rs 15,000 to Rs 25,000.

Similarly, Sunil Pote Shrestha of Netlink IT Solutions has sold FINSoft to 82 financial institutions. He assigned Sunil Suwal, proprietor of College of IT Sansar, to look after sales and provide after sales support. Suwal’s company charged Rs 5,000 to Rs 15,000 annually for resolving problems related to the software .

The police have also arrested Devendra Khatri, Umesh Khatri and Manoj Yadav. They have been handed over to Hanuman Dhoka Police Range for action as per the Electronic Transaction Act 2008 and Copyright Act 2002.

As per the Electronic Transaction Act, alteration of the source code to be used for any computer, computer programme, computer system or computer network is a crime. As per the act, any person involved in such an offence can be jailed for a maximum of three years or fined a maximum of Rs 200,000.

The CIB has not disclosed the names of the financial institutions that bought the software . According to Suresh Karna, chief process re-engineering officer of Kumari Bank, such software is basically being used by cooperatives and microfinance companies. “Since these types of crimes are increasing, the government must come up with the required changes in the laws to promote patent registration and help protect intellectual property,” he added.

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