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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: Of Course!
By AlphaVirus on 1/24/2008 11:48:34 AM , Rating: 2
Oh, and rather than develop software and make some money off of it, the developer will just choose to be unemployed

If you developed a software and it cost you $500,000 and you sold $100,000 worth of that software, which is some, how would you feel?
Earning 'some' does not cover what has already been expensed. This is the type of stuff that does make people either switch companies or even careers. It sucks but its the truth.

I seriously wish this study could become a reality, I get tired of all the pirating because it causes less products to hit the market. If the publishers dont make money, how can they create a new product.

These scum who pirate may think they are having fun now by getting something free, yet illegal, when there is nothing to pirate they are going to hate themselves.

RE: Of Course!
By rcc on 1/24/2008 12:51:28 PM , Rating: 2
Look at the state of the PC gaming industry. Most of the really successful and profitable games are on-line based, because it's harder to pirate.

Like most of the free (and semi free) market, everything will adjust itself eventually; but in the meantime the pirates are hurting those who are willing to pay for their entertainment.

RE: Of Course!
By Spuke on 1/24/2008 6:53:27 PM , Rating: 2
but in the meantime the pirates are hurting those who are willing to pay for their entertainment.
Theoretically, I would agree with this but, in reality, what products are we missing as a result of piracy? Microsoft still makes OS's and Office. Symantec still has their crappy software. The REAL impact is hard to quantify.

RE: Of Course!
By rcc on 1/24/2008 7:02:47 PM , Rating: 2
Please note that I was addressing the PC gaming industry.

"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
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