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BSA Publishes Software Piracy Survey,
by Robin Pilgrim, LawAndTax-News.com, London
Friday, May 16, 2008
According to the Business Software Alliance's fifth annual global PC software
piracy study, published on Wednesday, although piracy of software on personal
computers declined in many countries in 2007, fast growing PC markets in some
of the world’s highest piracy nations caused overall numbers to worsen,
a trend that is expected to continue.
Moreover, dollar losses from piracy rose by USD8bn to nearly USD48bn.
Of the 108 countries included in the report, the use of pirated software dropped
in sixty-seven, and rose in only eight. However, because the worldwide PC market
grew fastest in high-piracy countries, the worldwide PC software piracy rate
increased by three percentage points to 38% in 2007.
“We are making much-needed progress in the battle against PC software
piracy, and that’s good news for governments, end users, businesses, and
the industry,” observed BSA President and CEO Robert Holleyman, continuing:
“The battleground is now shifting, however, to emerging markets where
many of our collective challenges remain.”
“By the end of 2007, there were more than 1 billion PCs installed around
the world, and close to half had pirated, unlicensed software on them,”
added John Gantz, chief research officer at IDC, the market research and forecasting
firm which conducted the survey for the BSA.
“This study shows that government and industry anti-piracy efforts are
working in many countries, however, their attention will increasingly turn to
combating piracy in emerging economies.”
Among the study’s key findings were that:
Among the nations studied, Russia led the way with a one-year drop of seven
points to 73%, and a five-year drop of 14 points. Russia’s piracy rate
is still high, but it is decreasing at a fast pace as a result of legalization
programs, government engagement and enforcement, user education, and an improved
economy.
The three lowest-piracy countries were the United States (20%), Luxembourg
(21%), and New Zealand (22%). The three highest-piracy countries were Armenia
(93%), Bangladesh (92%), and Azerbaijan (92%).
Piracy rates dropped slightly in many low-piracy markets where rates have
been stagnant for several years, including the United States (-1%), United
Kingdom (-1%), and Austria (-1%). Many other developed economies experienced
a continuing gradual decline, including Australia, Belgium, Ireland, Japan,
Singapore, South Africa, Sweden, and Taiwan.
Market factors contributing to increasing piracy rates include: (1) dynamics
in the PC market where the fastest growth is in the consumer and small business
sectors; these are the hardest sectors in which to lower piracy; and (2) expanded
Internet and broadband access. With approximately 700 million people expected
to go online for the first time between 2008-2012, 76% of them will be in
emerging markets. Access to pirated software will continue to shift from the
streets to the Internet.
Market factors contributing to decreasing piracy rates include: (1) increasing
globalization among countries in emerging markets; (2) technologies such as
technical protection measures like digital rights management (DRM) which software
developers are building directly into their products; (3) new software distribution
models such as software-as-a-service.
“Experience has shown that the ‘blueprint’ for reducing software
piracy includes education, smart government policies, effective enforcement,
and legalization programs,” Holleyman stated.
“In short, we know what works, and we’re going in the right direction
through collaboration with governments. That said, it is important for BSA and
its members to expand our campaigns and outreach, and government support and
involvement is critical.”
BSA’s five-point “blueprint” for reducing software piracy
and reaping the economic benefits includes:
Increasing public education and awareness of the value of intellectual
property and the risks of
using unlicensed software;
Updating national copyright laws to implement World Intellectual Property
Organization (WIPO) obligations in order to enable better and more effective
enforcement against digital and online piracy;
Creating strong enforcement mechanisms as required by the World Trade Organization
(WTO) Trade-Related Aspects of Intellectual Property Rights Agreement (TRIPS),
including tough antipiracy laws;
Dedicating significant government resources to the problem, including national
IP enforcement units, cross-border cooperation, and training for local officers
and judiciary officials; and
Leading by example by implementing software management policies and requiring
the public sector to use only legitimate software.
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