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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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By MScrip on 5/12/2009 6:30:26 PM , Rating: 2
And what's funny... Adobe makes $600,000,000 profit each year... despite Photoshop being their "loss-leader"

RE: Adobe
By Hvordan on 5/12/2009 7:07:57 PM , Rating: 2
Is your point that as long as they're making a profit it's ok to steal their stuff or that they are enjoying success because piracy is boosting their sales?

RE: Adobe
By MScrip on 5/13/2009 1:10:05 AM , Rating: 2
My point is that Adobe is making money even though their products are highly pirated. It's actually quite a phenomena.... having a product that people love to steal... but enough people who will pay for it.

Adobe isn't going out and suing people because the torrents are full of Adobe Master Collection CS4. They have a business to run... shareholders to please... money to make.

Adobe makes expensive software for work purposes... in contrast, record companies makes $1 songs for entertainment purposes. But the RIAA is the one throwing money at lawsuits. You'd think it would be the other way around.

Adobe is still doing fine despite being a huge target for piracy.

Piracy is wrong... but it's never gonna stop. It's like shoplifting... there will always be some sort of loss to shoplifting. To prevent shoplifting, stores would need to be closed forever... but is that a practical solution?

Instead of focusing on the millions they "lost" to piracy... Adobe and their shareholders focus on the millions they do make.

RE: Adobe
By Hvordan on 5/13/2009 10:59:56 AM , Rating: 2
When it comes to PS, I don't think adobe are the ones paying the price for piracy. Their main customers are businesses and professionals who can't use pirated versions. The problem is that other companies, such as Jasc, do lose customers because they have a capable product people would be more inclined to buy, ut won't because they use a pirated version of PS.

I'm aware we can't eradicate piracy, but we really should work on getting people to understand that piracy (just like shoplifting) is not OK and it is theft.

"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook
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