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Survey: Software Piracy Rate Is Steady

Posted on: Wednesday, 18 May 2005, 18:00 CDT

LONDON -- The rate of global computer software piracy was virtually unchanged last year, with illegal copies continuing to be most prevalent in the Asia-Pacific region, according to the U.S. Business Software Alliance.

The alliance said that the rate of piracy averaged 35 percent around the world in 2004, compared with 36 percent in 2003. However, the value of illegal software rose to $32.7 billion, from $28.8 billion, it said.

"For every $2 of software that was purchased legitimately, there was $1 worth of software that was obtained illegally," said Robert Holleyman, BSA's chief executive. "That is a huge shortfall and it has big consequences."

Critics say such figures are exaggerated because those with pirated copies might not have actually gone out and paid full price for the software. They also argue that users of pirated software often later buy upgrades.

The BSA survey, conducted by the U.S.-based market research firm IDC, covered business applications, operating systems, consumer software and local market software in 87 countries.

IDC compared software sales in each of the countries with estimates of software in use and took the difference to be the pirated amount, calculating losses based on prices for those copies.

Vietnam topped the list, with 92 percent of all software used coming from pirates. It was followed by the Ukraine (91 percent), China (90 percent), Zimbabwe (90 percent) and Indonesia (87 percent).

The piracy rate was lowest - at 22 percent - in North America. Holleyman said that the United States has the lowest rate of piracy because it has the toughest penalties for illegal software usage.

The piracy rate was 53 percent in the Asia-Pacific region and 35 percent in Europe.

Source: Associated Press/AP Online

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