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Washington, D.C., (Wednesday, May 18) - Thirty-five
percent of the software installed on personal computers
worldwide was pirated in 2004, a one percentage point
decrease from 36 percent in 2003. Yet, losses due to
piracy increased from $29 billion to $33 billion.
These are among key findings of a global software piracy
study released today by the Business Software Alliance
(BSA), the international association of the world's
leading software developers. The independent study,
which indicates that software piracy continues to be
a major challenge worldwide, was conducted by global
technology research leader IDC.
"Worldwide, one out of every three copies of software
in use today has been obtained illegally," said
BSA President and CEO Robert Holleyman. "These
losses have a profound economic impact in countries
around the world. Every copy of software used without
proper licensing costs tax revenue, jobs, and growth
opportunities for burgeoning software markets."
In 2004, the world spent more than $59 billion on commercial
packaged PC software, up from $51 billion in 2003. But
over $90 billion was actually installed, up from $80
billion the year before. The increase in losses to $33
billion was, in part, the result of the fact that the
PC software market grew over six percent and the U.S.
dollar fell against many of the world's currencies.
Among the key findings:
- Although piracy rates decreased in 37 countries,
they increased in 34 countries. They remained consistent
in 16 countries.
- In more than half the 87 countries studied, the
piracy rate exceeded 60 percent. In 24 countries,
the piracy rate exceeded 75 percent.
- The countries with the highest piracy rates were
Vietnam (92 percent), Ukraine (91 percent), China
(90 percent), Zimbabwe (90 percent) and Indonesia
(87 percent).
- The countries with the lowest piracy rates were
the United States (21 percent), New Zealand (23 percent),
Austria (25 percent), Sweden (26 percent), and United
Kingdom (27 percent).
- The emerging markets in Asia Pacific, Latin America,
Eastern Europe and the Middle East and Africa account
for over one-third of PC shipments today, but only
a tenth of spending on PC software.
A primary factor in determining losses due to piracy
in a specific country is the size of that country's
software market. For instance, at 21 percent, while
the United States had the lowest piracy rate of all
countries studied, it also had the greatest losses -
$6.6 billion. That amount is almost double the amount
lost in the country with the second highest losses,
China, at $3.5 billion. In very large software markets,
comparatively low piracy rates still amount to huge
losses.
The below graph illustrates average piracy rates by
region of the world:
"Piracy is still most prevalent in countries and
regions where the software market is growing as personal
computing becomes more integral to work and daily life,"
said John Gantz, chief research officer at IDC. "But
we've learned from nations such as the United Arab Emirates
(UAE) that adopting policies to protect intellectual
property is key to curbing piracy. With a 34 percent
piracy rate, UAE is the only emerging economy listed
among the top 20 low-piracy nations, likely attributable
to policy measures on intellectual property enacted
in the 1990s."
"BSA's education programs, policy initiatives
and enforcement efforts around the world continue to
have an impact on the piracy problem," said Holleyman.
"But the continued influx of new users in emerging
markets, and the increased availability of pirated software
primarily through the Internet and P2P networks, underscores
that continued education is a must. BSA will continue
its efforts to stem the growth of piracy and thus stimulate
local economies, create jobs, generate tax revenue,
and encourage investment in technological innovation
for the future."
IDC used proprietary statistics for software and hardware
shipments, conducted more than 7,000 interviews in 23
countries, and enlisted IDC analysts in over 50 countries
to review local market conditions.
For more details about the study, please visit www.bsa.org/globalstudy.
# # #
The Business Software Alliance (www.bsa.org) is the
foremost organization dedicated to promoting a safe
and legal digital world. BSA is the voice of the world's
commercial software industry and its hardware partners
before governments and in the international marketplace.
Its members represent one of the fastest growing industries
in the world. BSA programs foster technology innovation
through education and policy initiatives that promote
copyright protection, cyber security, trade and e-commerce.
BSA members include Adobe, Apple, Autodesk, Avid, Bentley
Systems, Borland, CNC Software/Mastercam, Internet Security
Systems, Macromedia, McAfee, Microsoft, PTC, SolidWorks,
Sybase, Symantec, UGS and VERITAS Software.
IDC is the premier global market intelligence and advisory
firm in the information technology and telecommunications
industries. We analyze and predict technology trends
so that our clients can make strategic, fact-based decisions
on IT purchases and business strategy. More than 775
IDC analysts in 50 countries provide local expertise
and insights on technology markets, and our management
team is comprised of experienced and respected industry
luminaries. Business executives and IT managers have
relied for more than 40 years on our advice to make
decisions that contribute to the success of their organizations.
IDC is a subsidiary of IDG, the world's leading technology
media, research, and events company. Additional information
can be found at www.idc.com.
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