A Hong Kong business association has warned that a new law against use of illegal software is likely to mean the closure or relocation to the mainland of around 5,000 small firms because licences are too expensive for small firms to afford.

The Intellectual Property (Miscellaneous Amendments) Ordinance came into force on Sunday in the territory, carrying a potential fine of up to HK$50,000 and up to four years imprisonment for every piece of pirated software found.

Simon Shi Kai-biu, president of the Hong Kong Small and Medium Business Enterprises Association, is reported by South China Morning Post as saying that small businesses using software illegally cannot afford the licences. He called for the Government to introduce two-year loans of up to $200,000 to help companies with the transition to legal software. He is also calling for a 70% discount on Microsoft products.

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