Information Technology Landscape
Peru
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IT Legal Environment
In 1992, the Peruvian government founded the National Institute of the Consumer Defense and the Intellectual Property, known by its initials in Spanish as INDECOPI. Its mission is to promote an honest competition environment in Peru [58].
INDECOPI has made a great effort in both protecting and educating the consumer with respect to the buy and use of products in general but also copyright, patents, and trademarks. However, this effort has not been enough. For instance, even though INDECOPI has spelled out through a law that it is illegal to use software without a license [59], the average software piracy rate in Peru between 1994 and 1998 was 75% [60]. The main reasons why this piracy rate is so high may be that legal software in Peru is very costly—overall when it comes to imported software—and the purchasing power of the population is very low. Therefore, the “black market” where illegal software is traded, is so popular in Peru.
Nonetheless, the Peruvian government has lately improved its control on the use of software at medium to large size companies. INDECOPI and the Fiscal Police conduct software audits just to make sure that each computer at the work place has a legal license.
Although there is no excuse for the use of illegal copies of software, its impact on the economy of small businesses is important. Perhaps, the existence of such “black market” enables small businesses to start up or even stay in business.
Finally, at the consumer level, Peruvian population still sees piracy software as an affordable alternative to acquiring software. Sometime, the frustration of being unable to afford the purchase of legal licenses of software leads Peruvians to buy illegal copies.
Last update: March 2, 2004 by Dario Canal
