Ohio Identified as Software Piracy Hotspot

Cleveland and surrounding area among the most active for reported

illegal software use

WASHINGTON, Oct. 7 /PRNewswire-USNewswire/ — The Business Software Alliance (BSA), the voice of the world’s commercial software industry, has identified Ohio as a national hotspot for instances of illegal software use and is urging individuals in the Cleveland area to report the use of pirated software by businesses to NoPiracy.com.

In conjunction with the online software piracy reporting network at NoPiracy.com, BSA maintains the 1-888-NO PIRACY hotline. Individuals can confidentially offer information on unlicensed software use as well as register to claim rewards of up to $1 million. Since 2008, BSA has paid a total of $220,650 in rewards to 63 individuals for verifiable tips of software piracy. Despite the rewards program, many opt not to take the reward, citing their motivation as simply “to do the right thing.”

BSA also uses data from confidential reports to identify regional and local software piracy trends that demonstrate where the use of illegal software is most prevalent. Incident reporting by the public over the past nine months shows that the state of Ohio is a top five hotspot for illegal software with a large portion of reports coming from the Cleveland area.

“This is the first time BSA has identified specific US states as ‘Software Piracy Hotspots,’ although our records over the last few years have shown that Cleveland has always been active in terms of illegal software reports,” said Jenny Blank, Senior Director of Legal Affairs for BSA. “Our analysis of the trends suggests two things: First, given the number of leads from northeastern Ohio, people in the area are obviously quite concerned about this issue and don’t like the idea of local companies using what amounts to stolen software products. Second, there are clearly a lot of companies in Ohio who do not care that they are breaking the law and are willing to take the risks associated with that decision. For many companies, such blatant disregard for the law has proven costly.”

Each year, BSA receives more than 2,500 reports of software piracy from across the country. The majority of the reports come from current or former employees who had information related to the unlicensed software activity.

According to the Sixth Annual BSA-IDC Global Software Piracy Study, the retail value of unlicensed software installed in 2008 — representing revenue losses to software companies — was estimated at $9.1 billion in the United States and $53 billion worldwide.

The national average software piracy rate in 2008 was 20%, meaning that one in five pieces of PC software installed in the United States was unlicensed. Ohio’s rate however is a staggering 27% according to the 2007 State Piracy Report released last year and also conducted by IDC. This is over one-third higher than the national average and the highest rate of the eight states included in that study.

Software piracy in Ohio cost software vendors an estimated $447 million, while lost revenues to a wider group of software distributors and service providers cost an additional $1.2 billion, enough to hire 5,500 high tech workers, a strong labor boost during these challenging economic times. As further perspective, the lost state and local tax revenues in Ohio–$165 million–would have been enough to hire more than 2,800 experienced police officers.

Reducing piracy brings tangible economic benefits to the local IT industry and local communities. For every $1 of PC software licensed, there is another $3 to $4 of revenues for local service and distribution firms, as well as tax revenues to support local services.

“Staggering economic losses like these clearly appear to resonate with many individuals in the Cleveland area who have decided to come forward and confidentially report instances of unlicensed software use in their organizations,” said Blank.

Financial Risks

Businesses found to be using unlicensed software may be required to pay thousands of dollars in damages to BSA. A company found using unlicensed software and violating copyright laws could pay damages of up to $150,000 for each software title copied. If convicted, violators can be fined up to $250,000 per title or given a jail term of up to five years, or both.

When BSA receives a tip about a company using pirated software, it typically contacts the company and asks it to conduct an audit of its software assets. If unlicensed software is found, the next step is for both parties to work toward a resolution that involves immediate legalization of software.

Security Risks

Pirated software can also pose security risks to the users’ networks and computers. Company computers can be infected with trojans, viruses, malware, and other threats, and this in turn can expose sensitive data and personal information of employees and customers. As companies and government agencies have found, having confidential information exposed to outsiders is costly and can put an organization’s reputation at risk.

Tools & Resources to Ensure Compliance

BSA works with businesses to help ensure that their company isn’t at risk of the financial, technical, and legal risks associated with illegal software. In addition to the educational and self-audit resources provided online at www.bsa.org, BSA has partnered with the US Small Business Administration to educate up to 100,000 small businesses on software licenses, copyright laws, tips on how to purchase safe and legal software online, and how to develop an SAM program.

Businesses trying to determine whether their organizations are using unlicensed software can download the free software audit tools at www.bsaaudit.com.

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About BSA

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, Bentley Systems, Corel, CyberLink, Dassault Systemes SolidWorks Corporation, Embarcadero, McAfee, Microsoft, Minitab, Quark, Quest Software, Rosetta Stone, Siemens, Sybase, Symantec, and The MathWorks.

SOURCE Business Software Alliance