Properly Licensed Software Delivers Four Times the Economic Benefit of Pirated Software in Canada, BSA Study Estimates
Reduced risk and greater operating efficiencies drive value for
enterprises, boosting economic output
TORONTO, May 21, 2013 /CNW/ – A new study from BSA | The Software
Alliance and INSEAD, one of the world’s leading business schools, finds that increasing the
use of properly licensed software would have a greater impact on the
economy in Canada than allowing similar growth in the use of pirated
A one per cent increase in use of licensed software would generate an
estimated $2.25 billion, in national production, compared to $521
million from a similar increase in pirated software — meaning properly
licensed software would deliver $1.73 billion in additional economic
Competitive Advantage: The Economic Impact of Properly Licensed Software is a groundbreaking analysis that draws on data from 95 countries to
demonstrate the benefits to national economies of using fully licensed
software. The study confirms that increasing use of licensed software
corresponds to substantial positive gains in gross domestic product
(GDP), and that the economic stimulus effect of properly licensed
software is significantly greater than that of pirated software.
“Using properly licensed software reduces risk and creates operating
efficiencies that go directly to the bottom line for enterprises,” said
Jodie Kelley, Vice-President of Anti-Piracy & General Counsel. “This
study confirms that licensed software is not just good for firms — it
is an important driver of national economic growth. Government, law
enforcement, and industry in Canada should take every opportunity to
reap these potential gains by reducing piracy and promoting use of
properly licensed software.”
The study also finds that each additional dollar invested in properly
licensed software has an estimated return on investment (ROI) of $73.
This compares to a $46 return from each additional dollar worth of
pirated software put into use.
Among the study’s other findings:
-- Increasing licensed software use globally by one per cent would inject an estimated $73 billion into the world economy, compared to $20 billion from pirated software -- a difference of $53 billion. -- Every country included in the study saw greater economic returns from properly licensed software than from pirated software. -- On a dollar-for-dollar basis, the return on investment from using properly licensed software is greatest in developing countries -- $437 in extra GDP, on average. Still, countries across all income levels benefit: each additional dollar invested in licensed software has an average ROI of $117 in high-income countries and $140 in middle-income countries.
“Previous studies have shown that value-added services delivered with
properly licensed software help firms to reduce costs and increase
their productivity. This report goes one step further to ascertain the
impact of software use on national production,” said Eduardo
Rodriguez-Montemayor, senior research fellow at INSEAD eLab. “The
results make it clear that licensed software is beneficial for business
and national economies — and that licensed software has a greater
economic impact than pirated software across all countries included in
Governments and enterprises wanting to embrace the economic opportunity
presented by licensed software use should take action in the following
-- Establish strong and modern intellectual property laws that protect software and other copyrighted materials on PCs, mobile devices, and in the cloud. -- Step up enforcement of intellectual property rights with dedicated resources. -- Raise public awareness about the risks of software piracy. -- Lead by example by using only fully licensed software and implementing software asset management programs.
A full copy of the study: Competitive Advantage: The Economic Impact of Properly Licensed Software is available for download on BSA’s website: www.bsa.org/softwarevalue.
BSA | The Software Alliance (www.bsa.org) is the leading global advocate for the software industry. It is an
association of world-class companies that invest billions of dollars
annually to create software solutions that spark the economy and
improve modern life. Through international government relations,
intellectual property enforcement and educational activities, BSA
expands the horizons of the digital world and builds trust and
confidence in the new technologies driving it forward.
For information about the BSA brand, and how it appears in print, click here.
About INSEAD eLab
As one of the world’s leading and largest graduate business schools,
INSEAD brings together people, cultures and ideas from around the world
to change lives and transform organizations. eLab is INSEAD’s center of
excellence in the global knowledge economy. A key objective of INSEAD
eLab is to strengthen links across academia, business leaders and
policymakers by: drawing on a variety of global resources to develop
research insights that are academically rigorous and relevant to
private and public sector leaders.
Information on INSEAD eLab, including other research reports, can be
found at insead.edu/elab.
SOURCE BSA | The Software Alliance