Major Study Finds 36 Percent of Software In Use Worldwide Is
Pirated
$29 Billion in Losses Last Year
Laptop Battery WASHINGTON, D.C., July 7, 2004 Thirty-six percent of the
software installed on computers worldwide was pirated in 2003,
representing a loss of nearly $29 billion. These are the key
findings of a global software piracy study released today by the
Business Software Alliance (BSA), the international association of
the worlds leading software manufacturers.
Conducted for the first time by global technology research firm
International Data Corporation (IDC), this years BSA global piracy
study incorporated major software market segments including
operating systems, consumer software and local market software. In
previous years, the study was limited to business software
applications.
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Thinkpad The inclusion of these new categories paints a broader, more
accurate picture of the global software piracy problem based on
IDC's extensive industry and market knowledge. The study found that
while $80 billion in software was installed on computers worldwide
last year, only $51 billion was legally purchased.
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Microsoft 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.
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Laptop Computers Holleyman said the IDC study reflects a logical evolution in
BSAs 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.
But sales of pet supplies, cosmetics and fragrances will increase faster than other categories at growth rates of over 30 percent, the report found. Last year, online sales rose 25 percent to $176.4 billion, with 28 percent growth in online purchases excluding travel. Total Internet sales in 2004 and 2003 reached $141.4 billion and $114.1 billion, respectively, Silverman said. "I think we're still looking for the next several years (for) growth over 20 percent per year, " he said, adding that growth closer to 30 percent was probably not sustainable.
Laptop Computer 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.
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Desktop Computer Among the report's key findings were the
following:
Notebooks * The piracy rate in the Asia/Pacific region was 53 percent,
with dollar losses totaling more than $7.5 billion.
* In Eastern Europe, the piracy rate was 71 percent, with dollar
losses at more than $2.1 billion.
* In Western Europe, the rate was 36 percent, and dollar losses
totaled $9.6 billion.
* The average rate across Latin American countries was 63 percent,
with losses totaling nearly $1.3 billion.
* In the Middle Eastern and African countries, the rate was 56
percent on average, with losses totaling more than $1
billion.
* In North America, the piracy rate was 23 percent. The losses
totaled more than $7.2 billion.
Lenovo 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 billion) were about 17 times higher than
those in the Ukraine ($92.1 million). This difference is attributed
to a much larger total PC software market in the U.K. than in the
Ukraine.
Hard Drive 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.
Travelstar The fight for strong intellectual property protection and
respect for copyrighted
works spans the globe, and there
is much work to be done, Holleyman said.
Gateway 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.
Laptop Parts More information about the BSA's latest global piracy study can
be found at www.bsa.org/globalstudy.
Software
About the Business Software Alliance more
Hard Drives 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 before
governments and in the international marketplace. Its members
represent one of the fastest growing industries in the world. BSA
educates consumers on software management and copyright protection,
cyber security, trade, e-commerce and other Internet-related
issues. BSA members include Adobe, Apple, Autodesk, Avid, Bentley
Systems, Borland, CNC Software/Mastercam, Internet Security
Systems, Macromedia, Microsoft, Network Associates, SolidWorks,
Sybase, Symantec, UGS and VERITAS Software.
Electronics Contact
For more information, contact:
Canon Michael Shirer
press@idc.com
508-935-4200
Desktop Pc Diane Smiroldo
dianes@bsa.org
703-819-1963
Desktop Computers Debbi Bauman
debbib@bsa.org
202-530-5132
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