Pirated software is on the increase and now accounts for over one third of the software installed on the world's computers and it's cost the software industry a staggering, $28bn (?12bn) last year in lost revenues. That's the startling claim of the UK based, Business Software Alliance. Their annual survey of global software piracy shows that some 36% of software applications were illegally installed and being used during 2003.
The study, conducted for the first time on behalf of the BSA by global technology research firm, International Data Corporation, incorporated major software market segments, including operating systems and consumer software and local market software. They discovered that while software costing $81bn (?38bn) was installed onto computers around the world, only $51bn (?23bn) was actually purchased and installed legally.
The USA and Canada who collectively are the most honest when it comes to purchasing software show a software piracy rate of 23% whilst the worst offenders are within the Eastern European countries, where piracy levels are an incredible 71%. It's difficult to draw any comparisons from previous years data as this is the first year the study has been out-sourced to an independent company and takes in a wider spectrum of software than the previous studies conducted in-house by the BSA. As well as counting the number of illegally produced software programs installed on systems, the study also includes software for where an insufficient number of site licenses have been purchased.
"Software piracy continues to be a major challenge for economies worldwide," said Robert Holleyman, president and CEO of BSA. "From Algeria to New Zealand, Canada to China, piracy deprives local governments of tax revenue, costs jobs throughout the technology supply chain and cripples the local, in-country software industry."
Mr Holleyman went on to say, that the IDC study reflects a logical evolution in BSA's decade-long effort to measure piracy in the global economy. Its scope was expanded to account more accurately for trends such as the growth of local software markets worldwide and the acceleration of Internet piracy.
For its analysis, IDC drew upon its worldwide data for software and hardware shipments, conducted more than 5,600 interviews in 15 countries, and used its in-country analysts around the globe to evaluate local market conditions. IDC identified the piracy rate and dollar losses by utilizing proprietary IDC models for PC, software and license shipments by all industry vendors in 86 countries.
The study found that the size of a regional software market is the critical link between piracy rates and actual dollars lost. For instance, 91 percent of software installed in the Ukraine in 2003 was pirated, as compared to 30 percent in the U.K. But dollar losses in the U.K. ($1.6 bn) were about 17 times higher than those in the Ukraine ($92.1m). This difference is attributed to a much larger total PC software market in the U.K. than in the Ukraine.
"A number of factors contribute to the regional differences in piracy, including local-market size, the availability of pirated software, the strength of copyright laws, and cultural differences regarding intellectual property rights," said John Gantz, Chief Research Officer at IDC. "Unfortunately, we found that high market growth regions also tend to be high piracy regions, such as China, India and Russia. If the piracy rate in emerging markets ? where people are rapidly integrating computers into their lives and businesses ? does not drop, the worldwide piracy rate will continue to increase."
"The fight for strong intellectual property protection and respect for copyrighted works spans the globe, and there is much work to be done," Mr Holleyman said. "BSA will continue to work with governments to enact policies to protect software intellectual property as well as implement programs to raise business and consumer awareness about the importance of copyright protection for creative works. Lowering the piracy rate will stimulate local economic activity, generate government revenue, create job growth and cultivate future innovation."
Countries with Highest Piracy Rate:
Countries with Lowest Piracy Rate
Related links: http://www.bsa.org/, http://www.bsa.org/
About The Author
Robert Palmer is CEO of deskNET Communications (http://www.desknet.co.uk) - providing webmasters and e-commerce with a more successful alternative to opt-in email marketing and email newsletters; mail:bob@desknet.co.uk
cheapest limo Akin .. Lockport Chicago limo O’HareMicrosoft Great Plains is now targeting large and midsize businesses... Read More
Software Engineering is the Systematic Approach for analysis design implementation... Read More
Document Manager and Version HistoryIn previous articles I have discussed... Read More
ERP (Enterprise Resource Planning) Overview covers What is ERP, Brief... Read More
MicroWorld Technologies, Inc. the leading solutions provider in the area... Read More
Microsoft Business Solutions Great Plains serves to the wide spectrum... Read More
This tutorial covers OLAP solutions used by Data warehouses and... Read More
Blue Cross and Blue Shield of Hawaii (HMSA) found itself... Read More
Navision Software was purchased by Microsoft and now it is... Read More
Our hosted solution allow you to run your own search... Read More
The purpose of Project Management Software is to provide an... Read More
Homeland security, airport security, Internet security ??" these days we???re... Read More
Disclaimer: All the thoughts expressed are my views only! Your... Read More
We don't think about mainframe software pricing anymore, we just... Read More
With thousands of web pages added to the Net every... Read More
You would like to protect your documents, wouldn't you? Reasons... Read More
Microsoft Great Plains serves the wide spectrum of horizontal markets.... Read More
Just the thought of a duel-boot scares many people away,... Read More
The java programming language is becoming more and more popular... Read More
In this article you will find some background information about... Read More
We would like first emphasize the change in the paradigm.... Read More
Microsoft Great Plains has full-featured Manufacturing suite of modules: Capacity... Read More
Microsoft Business Solutions CRM data conversion deserves FAQ type of... Read More
The Windows Indexing Service provides you with the ability to... Read More
Vince Lombardi once said that, "The achievements of an organization... Read More
Aledo wedding limo ..Adobe Photoshop is one of the world's leading graphics editing... Read More
COMMAND LINE FUNCTIONA powerful command line script processor has been... Read More
Sales are all about leverage, because there is only so... Read More
This is intermediate level SQL scripting article for DB Administrator,... Read More
Manufacturing in the USA is far away down from mid... Read More
What is Software?Software is a set of instruction written to... Read More
Does Microsoft care for WebmastersIt's always been a problem with... Read More
Case study: A secretary using Corel WordPerfect 7 is often... Read More
Looks like Microsoft Great Plains becomes more... Read More
If you have Great Plains Dynamics/eEnterprise (version 6.0 or earlier)... Read More
We will base our prognosis on our Microsoft Business Solutions... Read More
Is your PC is slow and wimpy? Then you need... Read More
Microsoft Client Relation Management system (Microsoft CRM) and Microsoft RMS... Read More
Configuring PPP PAP AuthenticationNow we know how the ISDN link... Read More
I completed an experiment recently. I wanted to find out... Read More
Following tips help you to learn a software in lesser... Read More
There are plenty of articles out there about how to... Read More
This article is for advanced Microsoft CRM SDK C# developers.... Read More
What is Tripwire?Tripwire is a form intrusion detection system (IDS)... Read More
You might think you don't need a firewall... Read More
Some companies that are in need of fleet management may... Read More
Software development is a risky business.Many software developers are barely... Read More
ERP is the acronym of Enterprise Resource Planning. Multi-module ERP... Read More
Anyone who has ever used Microsoft Word knows that it... Read More
All your software is stored on a hard-drive. But how... Read More
Software |