35 percent of the packaged software installed on PCs worldwide in 2005 was illegal, amounting to $34 billion in global losses due to software piracy. However, some improvements in a number of markets indicate education, enforcement and policy efforts are beginning to pay off in emerging economies such as China, Russia and India and in central/eastern Europe and the Middle East and Africa.

These are among the findings of an annual global PC software piracy study released by the Business Software Alliance (BSA). The independent study was conducted by IDC, the information technology (IT) industry's leading global market research and forecasting firm.

"The progress made in reducing PC software piracy in several emerging markets provides some encouragement. However, much more needs to be done," said Robert Holleyman, President and CEO, BSA. "With more than one out of every three copies of PC software obtained illegally, piracy continues to threaten the future of software innovation, resulting in lost jobs and tax revenues."

Piracy rates decreased moderately in more than half (51) of the 97 countries covered in this year's study, and increased in only 19. The global rate was unchanged from 2004 to 2005 as large developed markets like the United States, western Europe, Japan and a handful of Asian countries continue to dominate the software market while their combined piracy rate hardly moved.

Some positive changes could be seen in the rapidly developing countries of Russia, India and China. Russia saw a four point drop in its PC software piracy rate while India's piracy rate declined two points. China, with one of the fastest growing IT markets in the world, dropped four points between 2004 and 2005.

Commenting on the specific findings for India, Ajay Advani, Co-Chair of BSA India Committee said, "It's heartening to see a two percent drop in the Indian piracy rate. We are moving in the right direction albeit slowly. Hopefully, we will see more support from both state and federal governments to help reduce the piracy rate. Only then can we see major drops in the piracy rate like some other Asian countries, notably China, have enjoyed. According to an economic impact study by the IDC and published last December, if we are able to reduce the piracy rate from the current 72 percent to 64 percent by 2009, India will see some 115,000 new IT jobs, an additional $5.9 billion pumped into its economy and increased tax revenues of $386 million."

The study also found that 19 of the 26 countries in the Middle East and Africa declined somewhat, with 12 countries dropping two or more percentage points. In central/eastern Europe, the piracy rate declined in 15 of the 18 countries included in this year's study. Notably, Ukraine dropped six points to 85 percent during the past year.

Global losses from software piracy amounted to $34 billion in 2005, an increase of $1.6 billion over the previous year.

CYBERMEDIA NEWS

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