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Stomping piracy mandates IT hirings, increases jobs and revenues study concludes; everyone wins except the pirates

Piracy is stronger than ever in the digital world today.  Movies, books, and music -- none are safe from the reach of pirates. The media typically reports chiefly on the harmful effects of these crackdowns, but what good might they yield?  This was the angle taken by a recent study by IDC IT Markets, which investigated the possible beneficial financial impact of increased efforts to cut software piracy worldwide.

Software piracy, which Romania says is akin the foundation of its statehood, accounts for billions in lost revenue worldwide.  China has a piracy rate of 82%, while Vietnam has a piracy rate of a whopping 88%.  Reducing this piracy by only 10% would generate $40 billion USD in economic growth and $5 billion USD in tax revenue for the region, according to the IT firm helping with the study.

IDC analyst
Marcel Warmerdam states, "In a country with a high piracy rate like Vietnam, a local software entrepreneur is not going to develop software because it will be stolen. That means high piracy countries don't develop a local software sector and that's bad because software helps companies become more competitive."

The IDC study also covered 42 other countries.  If piracy was cut in these countries by 10% over the next four years, the study estimated that it would generate 600,000 high-tech jobs in the U.S. and abroad.  It would also generate
$141 billion USD in new revenue and provide $24 billion USD in new global tax revenue.

Countries could hire IT experts to help fight piracy, which would both strengthen their economy and foster a high-tech industry, the study states.  It points out that if China cut its piracy by 10%, the additional IT personnel needed would allow it to surpass the U.S. for the largest IT workforce.  It points out that if Russia did the same, it could surpass India in IT force size, possibly bringing relief to the economic-stricken nation.

On the home front, a percent reduction would lead to
32,000 new jobs and add an additional $41 billion USD to our economy.

The study does note that most of the jobs created from fighting piracy will be overseas.  Since Asia has by far the highest piracy rates, it would have the largest job influx with
435,000 new jobs stemming from the theoretical reduction.

While the study is certainly in the realm of theory, it provides an interesting perspective on the benefits of cutting piracy in a time when public sentiment remains very sympathetic towards pirates.

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RE: Some serious questions on methodology
By Master Kenobi on 1/24/2008 10:20:32 AM , Rating: 3
Well in honesty, theres nothing economic about this. China as a country (government level on down to corporate level) steals everything from competitors. This is how they have been able to achieve such a technological increase in such a short period of time.

RE: Some serious questions on methodology
By Targon on 1/24/2008 11:54:48 AM , Rating: 2
You have to love how the governments around the world have been willing to continue doing business with China even when this kind of thing is hurting the overall economy. There really should be a push to change where things are manufactured from China to other countries that respect IP laws.

By rcc on 1/24/2008 12:47:35 PM , Rating: 4
Unfortunately, the consumer wants cheap. That is almost totally incompatible with manufacture in a country that respects IP.

RE: Some serious questions on methodology
By eye smite on 1/24/2008 2:04:41 PM , Rating: 4
China may be the worst but everyone pirates. If they can't get sites ot p2p clients to fiter the content right, it deserves to be downloaded for free and become public domain. The key always driving piracy is the companies greed. I have to wonder how much piracy came down here in america when they started the $5 dvds at walmart. People see a new movie, it's $19, naw can't afford that, oh hey I can download it free over here. That was 6 yrs ago when gas was $1.21 a gallon, now days it could be worse, I don't know. I suspect though that it has reduced because of dvd prices coming down. Let's cut to the chase though, this is more greedy people whining about the money they aren't making and doing very little about it............but whining. Ok, time to get back to WOW.

RE: Some serious questions on methodology
By qwertyz on 1/24/08, Rating: 0
By rcc on 1/24/2008 7:00:05 PM , Rating: 2
Exactly which world do you live in?

What were the Windows vs. Linux stats?

"This is from the It's a science website." -- Rush Limbaugh
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