Study: Software Piracy Problem Persists
The United States, Japan, New Zealand, and Luxembourg had the lowest rates of software piracy in the world in 2008 -- all near 20 percent -- while Armenia, Bangladesh, Georgia, and Zimbabwe had the highest instances of infringement, each with over 90 percent, according to the Business Software Alliance's sixth annual piracy study with market research and forecasting firm IDC. The report, being released Tuesday, shows that governments are software firms are making progress in slowing the spread of illegal programs but progress has stalled in the United States and the challenge is greatest in the world's fastest growing emerging markets.
Overall, the rate of PC software piracy last year dropped in about half (52 percent) of the 110 countries studied and remained the same in about a third (35 percent), the study found. However, the worldwide piracy rate went up from 38 percent in 2007 to 41 percent in 2008 because PC shipments grew fastest in high-piracy rate countries. Meanwhile, piracy-related losses to legitimate software vendors grew by more than $5.1 billion (11 percent) to $53 billion from 2007 to 2008, although half the growth stemmed from changing exchange rates. Excluding the effect of exchange rates, losses grew by 5 percent to $50.2 billion and the legitimate software market grew by 14 percent.
"We are continuing to make progress against PC software piracy in many countries, which helps people working in the U.S.-led global software industry. That's the good news," BSA President Robert Holleyman said in a press release. "The bad news is that PC software piracy remains so prevalent in the United States and all over the world. It undermines local IT service firms, gives illegal software users an unfair advantage in business, and spreads security risks." BSA noted the impact of the economic crisis appeared to be muted in its effect on piracy in 2008, in part because significant spending cutbacks did not start until late in the year. Read the full report here.
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Intellectual Property
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