The progress, albeit preliminary and modest, appears partly to be the result of new anti-piracy measures taken ahead of China's accession to the World Trade Organization (news - web sites) (WTO), including a recent crackdown on use of illegal software within the country's vast bureaucracy.

Also, the development of a home-grown software industry, long-stifled by rampant piracy and an industrial policy that favored other technology sectors, is spurring greater appreciation for the value of intellectual property.

"Now, when they produce something, they realize it's worth something," said Sai Tong Ho, deputy CEO of Keguang International, which is based in Hong Kong and Guangzhou. The company sells a map and positioning software system based on programming used for exercises by the People's Liberation Army. The piracy situation "is improving quite fast," he said during an interview here at the massive China Hi-Tech Fair.