Punishment is not effective way to stop piracy, thus software companies must think of other creative ways to combat piracy. Among the options could be the following:
Instead of pushing the government to run after piracy, request the government offices to have inventory of unlicensed software. After having a data on the number of unlicensed software, the government must negotiate from legal vendor for a good package or reasonable discount. We cannot deny the fact that some government agencies are using counterfeit software. With limited government funds for IT, some may be tempted to use pirated software to save on cost not considering the moral aspect.
Negotiate with the government for tax exemption for distribution of the licensed. Removing or lowering the tax will have a domino effect on the cost of the license. If the cost of the license is not expensive, citizens with lesser income can afford to buy license software
Provide larger companies who purchase volume of legal MS Office bigger discounts. Although the cost may be lower but because they purchase in volume, suppliers can have a margin.
Provide stronger security measure for the use of the software. For instance, the Microsoft producers must collaborate with internet provider to require license number before they can have access. Lower cost cannot compensate functionality.
Buying of license software must require one time registration. Then, a database of the licensed software buyer must be maintained and issued a unique password that will be require when trying to access internet connection. Those having no license cannot access, thus having a pirated software can have a limited use. Further, distribution of software should be regulated.
Above all, values formation must be part of their program to uphold the moral of the consumers.