China's Ministry of Finance to regulate authorized software procurements

China's Ministry of Finance (MOF) will further regulate the procurement of authorized software, according to a notice the agency released. It requires that software assets that government departments need to purchase shall be collectively procured in compliance with the Procurement Law.

The "Opinions to further regulate and enhance the management of software assets in government departments" (hereinafter referred to as "the Opinions"), which were issued by MOF to carry out the guidance of the State Council (the Cabinet) on assets management and intellectual property protection, promote the use of genuine software in government departments and contribute to a permanent mechanism on software assets management, request relevant departments to further regulate and improve their software management procedures and to establish a sound system on assets accounting.

According to the Opinions, relevant authorities shall incorporate the procurement of authorized software into their formulation of financial budgets and the management of state-owned assets and meanwhile step up supervision to avoid careless purchases of infringing products. They shall collectively purchase necessary software in accordance with the Procurement Law and strictly follow the procedures on public bidding for procurements beyond certain volumes. When purchasing authorized software, the departments must provide detailed requirements on compatibility, licensing, information security and updates and safeguard fair competition in the software market in the mean time.