Russian Digital Ministry proposes compulsory licensing of software companies: Report

Moscow [Russia], December 29 : The Russian Digital Ministry is discussing with market actors a bill that will allow for compulsory licensing of software companies that have left Russia and "decriminalize" the illegal use of foreign software in the country, a Russian newspaper reported on Thursday, as cited by Sputnik.
"According to a letter from Dmitry Nikitin, the head of the IT Industry Development Department of the Digital Ministry of Russia, foreign software usage needs regulation because of developers' withdrawal from Russia. The government is working on special conditions for foreign software, as it is impossible for Russian users to fulfil existing treaty obligations, the newspaper reported," the report said,
Russia's Digital Ministry is discussing the prospects for compulsory software licensing with representatives of IT associations. Russia's Deputy Minister Maxim Parshin on December 28 said that the initiative is being worked out in a closed mode from the market because it is "a separate bill".
Industry experts had divided opinions on the issue. ""Decriminalization" of the illegal use of software will significantly slow down the pace of software import substitution and cause damage to the entire Russian IT market," believes Pavel Kalyakin, CEO of MyOffice, a Russian IT company that develops secure office solutions for communication and collaborative work.
Alexey Smirnov, board director of Russian software operating system developer BaseALT, believes that the measure is necessary, but it should be finalized. "It is logical to establish a double payment for software, in which 50 per cent of the funds will go to a special account, and another 50 per cent to support Russian developers," Smirnov was quoted as saying by a Russian newspaper, reported Sputnik.
According to Sputnik, "After Russia launched the special military operation in Ukraine on February 24, the domestic IT industry faced a number of challenges. Most of the major Western vendors have left the Russian market. Among the manufacturers of telecommunications equipment and software that left the Russian market were Cisco, SAP, Oracle, IBM, Nokia and Ericsson. Major technology manufacturers Samsung and Apple also suspended deliveries of their products to Russia in March."
Recently, it was reported that Chinese software companies doing business in the United States are feeding data directly to the Chinese Communist Party (CCP), US Secretary of State, Mike Pompeo said on Sunday, amid worsening relations between Washington and Beijing
"These Chinese software companies doing business in the United States, whether it's TikTok or WeChat," Pompeo said on Fox News quoting White House trade adviser Peter Navarro "are feeding data directly to the Chinese Communist Party, their national security apparatus".