'MS Windows, Photoshop most pirated software in RP'

Pop quiz: what are the two most pirated software in the Philippines today?

According to Business Software Alliance consultant Atty. Bien Marquez, majority of computer users in the Philippines who use pirated software often use illegal copies of Microsoft Word and Adobe Photoshop in their PCs.

"Aside from Windows, the most pirated software right now is Adobe Photoshop. The next is Autodesk AutoCAD, there's a lot of that. Finally, there are the anti-virus programs such as McAfee, Symantec and others. Those are the types of [pirated] software widely reported on the BSA hotline," Marquez told abs-cbnNEWS.com.

He said in one recent forum of architecture students, he asked the audience who among them were using pirated copies of AutoCAD. "Almost everyone raised their hands. When I asked who were using IntelliCAD, only two raised their hands," he said.

Marquez said some computer users prefer to use proprietary software instead of free software because they are satisfied with their experience in using paid software. He added, however, that while the BSA advocates the use of free software, users must realize that they should pay if they want to use proprietary software.

"We promote copyright protection. On the other hand, we also believe in giving users a choice especially since some of our members do create free software. It's up to the user if they want to use open source or not but if they use proprietary software, they have to be willing to pay," he said.

Marquez said there are five types of software piracy namely end user piracy, hard disk loading, software counterfeiting, client-server overuse and Internet piracy.

End user piracy takes place when end users make use of unlicensed software on their computers or install more copies than they are entitled to under the license agreement.

Hard disk loading happens when computer dealers pre-install illegal copies of software onto computers prior to sale. This means that some dealers use one legally acquired copy but install it on many machines. These computers are usually sold without any form of licensing documentation or disks

Software counterfeiting is the illegal duplication and sale of software in a form that is almost identical to the genuine product.

Client-server overuse takes place when too many employees on a network use a central copy of a program at the same time than stipulated under licence agreements

Finally, Internet piracy happens when software programs are placed by third parties on the Internet for download free of charge or for a fee. Pirates tend also to use the Internet as a means of advertising to solicit sales or auction sites to sell illegal software

The BSA launched on Tuesday a new video that encouraged Filipinos to be a "superhero" in the fight against piracy. The video directs viewers to BSA’s newly established website, which contains helpful tips on how to spot the use of pirated software in the workplace including basic information about software piracy and its types as well as the economic impact of software piracy.

Marquez said the BSA maintains a hotline where the public can submit reports against businesses using unlicensed and pirated software. From January to August 2009 alone, the BSA has already received over 500 reports through the hotline. The organization currently offers a reward of up to P1 million to individuals who can provide information that will lead to a successful case against a company that uses unlicensed and pirated software.

Icahn cuts stake in Yahoo!

Billionaire investor Carl Icahn has sold 12.7 million shares in Yahoo!, cutting his stake in the company a month after it formed an Internet search partnership with software giant Microsoft.

Icahn, a member of Yahoo!'s board and one of Yahoo!'s largest shareholders, sold the shares during the last 3 trading days on Wall Street, according to a filing on Monday with the Securities and Exchange Commission (SEC).

Icahn sold the shares at prices between $14.74 and $14.92.

In November, following the decision of Yahoo! co-founder Jerry Yang to step down as head of the Internet firm, Icahn increased his stake in Yahoo! to 5.4%, up from the 5% he owned previously.

Icahn and Yang were involved in a very public dispute last year when Yang rejected a $47-billion takeover bid by Microsoft for the company he founded with a Stanford University classmate in 1995.

Icahn's sale of Yahoo! stock came a month after the company agreed to a Web search and advertising partnership with Microsoft.

Under the no-cash deal, Yahoo! will use Microsoft's new Bing search engine on its own sites while Yahoo! will provide the exclusive global sales force for the companies' premium search advertisers.

Yahoo! lost 1.62% in New York on Monday to close at $14.61.

Yahoo-Microsoft deal finally worked out (confirmed)

The story has had quite a volume of press since a few months ago when Microsoft's offer to buy out Yahoo! for $47.5 billion was turned down by then Yahoo CEO Yang.

A couple of weeks later, rumors about a different Yahoo-Microsoft deal came out. This time, it was only for the Yahoo's search business, and Microsoft's advertising arm. In this new deal, it was supposed that Microsoft will handle Yahoo's search engine, while Yahoo handles Microsoft's online advertising.

Just yesterday, however, a deal not very different from what was rumored was confirmed to have been struck between the two tech giants. The obvious drive behind this would be to take on search and targeted advertising giant Google. But the question of whether it's going to work remains.

The long-expected deal means Microsoft's new Bing search engine will be combined with Yahoo's experience attracting advertisers in the first serious threat to Google Inc -- if the companies get regulatory approval and can make the partnership work.

Yahoo shares fell 12 percent as some investors were disappointed by the limited scope of the deal, which did not include up-front payments for Yahoo. Some investors had expected up to $3 billion up-front, according to a Bernstein report.

"I would have preferred more money," said Ryan Jacob, chief investment officer of Jacob Asset Management, pointing to the lack of an upfront payment, as well as revenue-sharing and cost-savings terms that were not as high as he expected.

"There are risks on both sides. Big deals like this tend not to work out. It's a long-term deal that's going to take a long time to implement," said Jacob, whose $40 million fund holds some Yahoo shares. "It's better than no deal."

Microsoft shares closed up 1.4 percent, while Google shares fell 0.8 percent.

Yahoo estimated the deal would boost its annual operating income by about $500 million and yield capital expenditure savings of $200 million. Yahoo also expects the deal to boost annual operating cash flow by about $275 million.

Antitrust obstacle

Under the deal announced on Wednesday, Microsoft's Bing search engine will power search queries on Yahoo's sites. Yahoo's sales force will be responsible for selling premium search ads to big buyers for both companies.

The partnership poses only a theoretical challenge to Google at present. It could take two-and-a-half years to get approval and be fully implemented, according to Yahoo Chief Executive Carol Bartz, which would mean the partnership would not be fully effective until early 2012.

Microsoft and Yahoo still face antitrust and privacy issues. Google dropped a planned search partnership with Yahoo last year under pressure from the U.S. Justice Department.

But experts said the deal would likely get the go-ahead after examination by Obama administration antitrust officials since it would create a stronger rival to market leader Google.

Google said only that it was "interested" in the deal, while the chairman of the US Senate antitrust panel said it warrants "careful scrutiny."

Microsoft and Yahoo expected the deal to be "closely reviewed" by regulators, but they were "hopeful" it could close in early 2010.

The deal concludes a lengthy, and at times contentious, dance between the two companies. They have been in on-again, off-again talks since Yahoo rebuffed Microsoft's $47.5 billion takeover bid last year.

Microsoft CEO Steve Ballmer clashed last year with former Yahoo CEO Jerry Yang, who was strongly opposed to an all-out acquisition. Relations between the two companies improved under new Yahoo CEO Bartz, who took the reins in January and started to shake up Yahoo's management.

Ballmer and Bartz met "three or four times" over the past six months as they hammered out a deal, according to Ballmer.

How the deal works

While Bartz had previously said any deal would require a partner with "boatloads of money," she said on Wednesday the agreement provided "boatloads of value," adding the revenue- share agreement in the Microsoft deal was more valuable to Yahoo than a one-time payment.

"Having a big up-front cash payment doesn't really help us from an operating standpoint," Bartz said.

Microsoft's AdCenter technology will serve the standard sponsored links that appear alongside search results. Microsoft will pay Yahoo an initial rate of 88 percent of search revenue generated on Yahoo sites in the first five years.

That means Yahoo can concentrate on selling ads on its websites, while still generating revenue from search ads without the expense of maintaining its own search engine.

Bartz said the deal will result in "redundancies" in Yahoo's staff, although she declined to be specific. She stressed any changes would not occur until after full implementation of the partnership.

According to comScore, Google has a 65 percent share of the US search market, compared with Yahoo's 19.6 percent and Microsoft's 8.4 percent.

"Microsoft will be able to report a greater share in terms of search ... And Yahoo doesn't have to spend any more money on search," said Barry Diller, CEO of IAC/InterActiveCorp, which owns rival search engine Ask.com.

Yahoo shares closed down $2.08 at $15.14 on Nasdaq, while Microsoft closed up 33 cents at $23.80 and Google shares closed down $3.61 at $436.24.