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Software Piracy Will Expand With IT Market

Jason Lee Miller
Staff Writer
Published: 2005-05-18

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For every two dollars' worth of software purchased legitimately, one dollar's worth was obtained illegally, says a new study from Business Software Alliance.

Conducted by International Data Corporation (IDC), the IT industry's leading global market research and forecasting firm, the study incorporated 2004 shipment statistics of software and hardware and 7000 interviews in 23 countries to develop piracy rates for 2004.

According to the study, the countries with the highest piracy rates are Vietnam, Ukraine, China, and Zimbabwe, all of which have a software piracy rate of above 90%.

The US and New Zealand were among the lowest with 21% and 23% respectively.

About 1/3 of the software floating around in the world is illegally copied adding up to $33 billion in lost revenue for 2004. The study contended that those numbers would increase as IT markets expand into developing nations, possibly topping $200 billion by 2010.

"These losses have a profound economic impact in countries around the world," said BSA president Robert Holleyman. "Every copy of software used without proper licensing costs tax revenue, jobs and growth opportunities in burgeoning software markets."

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About the Author:
Jason L. Miller is a staff writer for WebProNews covering technology and business.

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