Piracy, the scourge that could cost you your business

These are consumer goods, something that we use or interact with each day. But there is a bigger problem and one that goes largely undetected. It is pirated hardware and, in particular, computer peripherals and the consequences thereof could cost you a lot more than you think.

There are people who will take a stand against the pirating of DVDs, music and clothing, but when it comes to copies or knock-offs of USB flash drives "it's okay because it's cheaper, right?" Or perhaps it's because the copies are just so good that it is harder to tell the difference between the real thing and the one the street vendor is holding in his hand.

Growing faster than it can be stopped

There are South African organisations like the Department of Trade and Industry (DTI), the South African Police Services, Business Software Alliance and the Recording Industry of South Africa (RISA) that are doing their best to educate users and eliminate piracy in South Africa, but, sadly, it is an activity that grows faster than it can be stopped.

RISA reports that music piracy is said to cost the South African music industry over R500 million every year. DVD piracy is rife. The last available figures from SAFACT states that more than 50 percent of DVDs - or three million units - sold in South Africa every year are pirated. Meanwhile, estimates for software piracy in South Africa currently sit at 30 percent, which costs the software industry dearly. The value of counterfeit goods - rugby and football jerseys, branded clothing and the like - seized by the DTI in the last financial year amounted to more than R696 million. Add those figures up and it becomes even more alarming.

The indirect costs

But those are direct costs. Think for a second about the indirect costs on business when an employee makes use of counterfeit USB flash drive to store critical company data. How much is that data worth? Hundreds, thousands, perhaps hundreds of thousands - or even millions? It's less likely in large organisations that have sophisticated back-ups, but in the small-to-medium enterprises - the lifeblood of the growing economy in South Africa - the loss of critical data that is often not adequately backed up could mean the failure of a business or the failure of an idea that, as a result, never sees the light of day. Data then, to some people, is priceless. Why then take the risk to save R30?

The cost of USB flash drives has dropped dramatically in the past five years. A 4GB USB flash drive will cost approximately R70, an 8GB unit perhaps R130 - both of which cost upwards of R200 less than three years ago. With these devices being so affordable it doesn't make sense to buy the counterfeit unit. By purchasing a counterfeit Transcend USB flash drive you are not getting the latest technology that is not yet available in South Africa (the driver behind DVD and music piracy), it's not something that you are going to be buying in vast quantities where the "saving" is compounded in multiples (the driver behind business software piracy), and the price differential between the real item and the counterfeit one is quite low (the driver behind counterfeit clothing and sunglasses). In the end then, there is no benefit apart from the perception that it contains a greater capacity, something that you often find all too quickly out is untrue. Counterfeit USB flash drives are often sold under the impression that they might hold a large quantity of data. To the consumer this is attractive. The reality is that in most cases the physical capacity of the drive is significantly less. Firmware installed on these devices fools a computer into allowing it to copy over a large volume of data that, when required in the case of a back-up, is completely corrupted, rendering the data and the USB flash drive useless. How much is the data, family photos, critical company documents and the like worth to you?

Rigourous vetting and accreditation

Rectron has a very well controlled channel. It has taken more than 16 years to grow it to the size it is now and to ensure that its partners and customers are looked after and receive a high level of after-sales customer service. In the process, the channel partners have to undergo rigourous vetting and accreditation. It's managed that way to ensure that they can deliver the level of service that Rectron requires to keep its, and the brands that it represents, reputation in good stead. It goes without saying that it is unlikely that your stall at the local flea market or street vendor hoofing sunglasses, licence disk holders and USB flash drives is a part of that channel. In this case, the old adage that says: "if it's too good to be true, it probably is," has never rung more clearly.