The Meiban Group told the Singapore Exchange (SGX) that its unit, Meiban Mold Manufacture, was raided on Monday for alleged software infringement. The raid involved over a dozen police officers, as well as representatives of American software firm Parametric Technology Corporation (PTC).

PTC had applied to the Subordinate Courts for a search warrant to raid Meiban's Ubi Road premises.

A police spokesman said 11 desktops, a laptop and nine CDs were seized.

PTC's lawyer, Mr Koh Chia Ling, alleged that Meiban had infringed the high-end Pro/Engineer software used for 3D designs. Each copy costs US$150,000 (S$204,990).

A back-of-the-envelope calculation based on the number of computers seized puts the value of the software allegedly being used illegally at US$1.8 million.

It was not known what data was on the CDs seized.

The Singapore Copyright Act makes it an offence to use copyrighted software. Convictions can bring fines of up to $50,000 or a jail term of up to three years.

PTC could also sue Meiban for damages in a civil suit.

A Meiban spokesman acknowledged infringing software had been found. He said the firm was conducting an internal investigation, including interviews with employees using the pirated software, to find out how the breach had occurred.

'The company does not tolerate such behaviour, and we are quite regretful this has happened,' he said.

The company said it would put in 'robust controls' to ensure no unauthorised software could be installed in future. It intends to hire an external auditor to check the computer systems across the group's 10 subsidiaries to ensure there are no other such lapses.

Its spokesman said he was hopeful Meiban would be able to 'settle the matter amicably' with PTC.

The firm is still trying to determine if the raid will have a material impact on its financial results. It will make an announcement to the SGX when appropriate.

Meiban makes injection moulds and plastic components for kitchen appliances, toasters, electronic devices and toys.

It has won the prestigious Red Dot design award several times in recent years. The annual award is one of the most coveted international prizes for industrial design.

Meiban's founder and chairman is Mr George Goh, who is also an appointee to the Economic Development Board.

At least two other listed companies have run into trouble over software piracy in the past three years. Both companies - one is in the fabrics industry, the other is a shipyard - settled out of court.

An estimated 37 per cent of computers in Singapore are running pirated software, according to software industry watchdog Business Software Alliance.

Meiban shares closed unchanged at 32.5 cents yesterday.

chuahh@sph.com.sg