Krishna Baidya’s Random Musings

Software piracy costs industry $50 Billion : BSA

Posted on: May 13, 2009

imagesAccording to a study performed by IDC for the Business Software Alliance, global software piracy is increasing. The report estimated that worldwide losses due to piracy totaled $53 billion, an 11 percent y-o-y increase.

The study estimated that pirated software accounted for 41 percent of all software installations globally, which is neck to neck to legitimate commercial installation of 44 percent. The remaining 15 percent of software was free or open source. Despite successes in fighting piracy in China and Russia there has been 3 percentage point increase in pirated software installation in 2008. All the while, global sales of PC software rose by 14% last year to $88 billion.

According to the study, U.S. piracy was about 20 percent of the total market, the lowest in the world but the highest single dollar loss, it was a major problem because more software was sold in the United States than anywhere else. Much of those losses came from small businesses that use unlicensed copies of popular software programs

There has been mixed results in Asia Pacific, with eight economies showing a decline in the PC software piracy rate, no change in seven and an increase in three. The PC software piracy rate for Asia Pacific meanwhile increased to 61 percent compared to 59 percent in 2007, with dollar losses stemming from software piracy escalating to over US$15 billion in 2008 compared to over US$14 billion in 2007.

The personal computer (PC) software piracy level in Singapore registered 36 percent in 2008, a one percentage point drop from 37% in 2007.  However dollar losses caused by software piracy continued to increase, rising to US$163 million in 2008 compared to losses of US$159 million in 2007. Amidst government action towards using legitimate software and ISPs cooperation in combating piracy, software piracy in China fell to 80 percent, a 10 percentage point drop from previous year.

The study said that the countries with the lowest piracy rates are the US, Japan, New Zealand and Luxembourg, all near 20 percent. The highest software piracy countries are Armenia, Bangladesh, Georgia and Zimbabwe, all over 90 percent.

  • While emerging economies account for 45 percent of the global PC hardware market, they account for less than 20 percent of the PC software market. If the emerging economies’ PC software share were the same as it is for PC hardware, the software market would grow by $40 billion a year. Lowering global piracy by just one point a year would add $20 billion in stimulus to the IT industry.
  • Of the 110 economies studied, Russia has made the most progress, with a one-year drop of five points to 68 percent and a five-year drop of 19 points.
  • The lowest-piracy countries are the United States, Japan, New Zealand, and Luxembourg, all near 20 percent. The highest-piracy countries are Armenia, Bangladesh, Georgia, and Zimbabwe, all over 90 percent.
  • The highest-piracy regions are Central/Eastern Europe (67 percent) and Latin America (65 percent). The lowest regions are North America (21 percent) and the European Union (35 percent).
  • The United States has the largest dollar losses from PC software piracy, $9.1 billion in 2008, because it is the largest software market in the world.

If you are interested in the detailed report, you can get it here.


1 Response to "Software piracy costs industry $50 Billion : BSA"

Piracy is been a big problem in the Philippines. The government had to put up a department to deal with this alone. The Optical Media Board is what it came about and fortunately they have been doing good. Less pirated movies and records can be seen on the street. Lately they focused on illegal use of software and found out that even some companies practices such. An instance which happened last week where a call center company Garrett & Talon which has an in house account – JUSTFLOWERS was raided by the authority because of illegal use of operating system (windows). When OMB raided the company they found out that only 1 OS was legally bought and was used to run 100 or more PC’s. The case is now on going. Kudos to OMB!

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