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Piracy rates are the highest in developing nations

Piracy in the digital goods market runs rampant. Music piracy is what typically comes to mind when many consumers think piracy, but software is one of the categories that is targeted by pirates the most. The reason is that software like Windows operating systems and Office productivity suites are desired by many, but the high price puts them out of the reach of users particularly in developing nations.

A new joint report from the Business Software Alliance (BSA) and research firm IDC has found that losses to software companies from pirated products have topped the $50 billion mark for the first time ever.

According to the report, headway against piracy is being made by companies, law enforcement officials and governments, but in some areas -- like the U.S. -- anti-piracy efforts have stalled. The sixth annual BSA-IDC Global Software Piracy Study found that in 2008 the PC software piracy rate dropped in 57% of 110 countries included in the study. Nearly a third of the countries studied found that the software piracy rate remained the same.

The study claims that the worldwide piracy rate rose for the second year in a row moving from 36% to 41%. The rise in global piracy is mainly attributed to PC shipments growing the fastest in countries like China and India where piracy is much more rampant. China has recently cracked down on software pirates and convicted 11 for pirating Microsoft software.

BSA President and CEO Robert Holleyman said, "The bad news is that PC software piracy remains so prevalent in the United States and all over the world. It undermines local IT service firms, gives illegal software users an unfair advantage in business, and spreads security risks. We should not and cannot tolerate a $9 billion hit on the software industry at a time of economic stress."

EWeek reports that the study does note that the global recession has affected the piracy rate to some extent. IDC chief research officer John Gantz said that consumers are keeping old computers longer in the current economy and consumers that hold onto old computers are more likely to install pirated software on the machines.

Gantz said, "Reduced buying power is only one of many factors affecting software piracy. The economic crisis will have an impact – part of it negative, part of it positive – but it may not become fully apparent until the 2009 figures come in."

The positive aspect according to Gantz is that the reduced buying power of the average consumer has them looking at netbooks, which are often bundled with legitimate copies of software. IDC predicts that the piracy rate will only increase with 460 million new internet users coming online in emerging markets over the next five years. These emerging markets are where piracy is most rampant with as much as 90% of software installed on computers being pirated versions.

The countries with the lowest levels of piracy according to the study were the U.S., Japan, New Zealand, and Luxembourg -- all with piracy rates near 20%. The countries with the highest percentage of piracy included Armenia, Bangladesh, Georgia, and Zimbabwe -- all with piracy rates over 90%.

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RE: Not Lost Sales
By RandallMoore on 5/12/2009 2:15:38 PM , Rating: 2
I think you are missing the point of why people pirate. It's because they can and do get away with it almost %100 of the time. Is is stealing? Yes. Do they still deserve it for price gouging? Yes.

Piracy is our only form or fighting the price gouging right now. I would prefer boycotts or some other form of resistance, don't get me wrong. But for right now, its what the people are doing. No one is actually going to boycott anything these days, we are too lazy.

RE: Not Lost Sales
By peritusONE on 5/12/2009 2:42:09 PM , Rating: 2
I think you are missing the point of why people pirate. It's because they can and do get away with it almost %100 of the time. Is is stealing? Yes. Do they still deserve it for price gouging? Yes.

I'm not missing the point of why people pirate. He said that stuff is priced too high, and that companies deserve it, so I responded directly to that comment.

However, I still think that saying a company "deserves" to be stolen from is ignorant. They may deserve to not earn your dollars because you think they are priced too high, which is perfectly fine. But you don't deserve to use their software just because you hold an opinion.

RE: Not Lost Sales
By Oregonian2 on 5/12/2009 3:12:10 PM , Rating: 2
Do they still deserve it for price gouging? Yes.

Don't think they are price gouging. They are just pricing what the market will bear. Price and demand.

If what Adobe charges for PS is "obscene" then suitable alternatives will happen to get on that gravy train and sales will move (like to Corel Paint perhaps, or GIMP). I suspect all commercial users of Photoshop are relatively satisfied in what they get for the price they pay.

Where "gouging" comes in is more from perception. The casual user where only 1% of Photoshop's "power" is really needed (if that) will of course find PS's price a rip-off just as someone who normally drives a Toyota Corolla might think pricing on a Porche is a ripoff. Just not the proper product. Adobe has other much less expensive photo tools that still are probably a lot more than most need.

That said, I did buy into PS at around version 3 or so and have upgraded a few times, but not lately -- finding that I really don't need much beyond the basics of curves and the like.

"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser

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