Global Piracy Study...

[Teddy Rogers]

I found this article interesting, 2007 Global Piracy Study:

The IDC Global Software Piracy Study covers all packaged software that runs on personal computers, including desktops, laptops, and ultra-portables. This includes operating systems, systems software such as databases and security packages, business applications, and consumer applications such as PC games, personal finance, and reference software. The study does not include other types of software such as that which runs on servers or mainframes or software sold as a service.

Progress was made in 2006 in the fight against software piracy. Of the 102 countries covered in this year's study, the piracy rate dropped in sixty-two countries from 2005 to 2006. The piracy rate increased in thirteen countries. However, because the worldwide personal computer market grew much faster in higher-piracy countries and regions, the worldwide personal computer (PC) software piracy rate remained at 35% for a third consecutive year. At the same time, because the size of the market grew significantly in 2006, losses from piracy at that rate rose by more than $5 billion, a 15% increase over 2005.

While the worldwide weighted average piracy rate is 35%, the median piracy rate is 62%, meaning half of the countries studied have a piracy rate of 62% or higher. In just under one-third of the countries, the piracy rate is higher than 75%. Although some high-profile countries -- China and Russia -- saw significant drops in piracy, they also commanded a higher percent of the worldwide market, and this consequently prevented the worldwide average from dropping.

China's piracy rate dropped four percentage points for the second consecutive year and has dropped ten percentage points in the last three years, from 92% in 2003 to 82% in 2006. By reducing China's piracy rate by ten percentage points over three years, $864 million in losses was saved, according to IDC. The reduction in the piracy rate and the savings are the result of government efforts to increase the use of legitimate software within its own departments, vendor arrangements with PC suppliers to use legitimate software, and increasing industry and government education and enforcement efforts. The legitimate software market in China grew to nearly $1.2 billion in 2006, an increase of 88% over 2005. Since 2003, the legitimate software market in China has grown over 358%. Russia's 3% drop to 80% in 2006 follows a 4% drop in 2005. Russia's piracy rate has dropped seven percentage points since 2003, a result of government and industry efforts to lower piracy and, as with China, more arrangements between software vendors and PC suppliers to increase the use of legitimate software. In addition, the increase in discretionary personal income as a result of Russia's fast-growing, oil-driven economy seems to have had a positive effect on user willingness to buy legitimate software. The issues in dealing with software piracy in emerging markets remain: a rapid influx of new PC users in the consumer and small-business sectors, the increased availability of pirated software over the Internet, and difficult enforcement and education over sometimes sprawling geographies.

So it remains in 2006 that for every $2.00 worth of software purchased legitimately, $1.00 worth was obtained illegally.

http://www.aladdin.com/pdf/hasp/Global-Piracy-Study-EN.zip

Ted.

[Teddy Rogers]

Here is a link to the 2008 Global Piracy report for those interested:

/>http://www.ifap.ru/pr/2009/n090727a.pdf

Ted.

[Blah]

cool..will read tomoro

[Teddy Rogers]

Here are the Global Software Alliance's 2009 study reports:

Software Theft Remains Significant Issue Around the World

The rate of global software piracy climbed to 43 percent in 2009. This increase was fueled in large part by expanding PC sales in fast-growing, high-piracy countries and increasing sales to consumers — two market segments that traditionally have higher incidents of software theft. In 2009, for every $100 worth of legitimate software sold, an additional $75 worth of unlicensed software made its way onto the market. There was some progress in 2009 — software rates actually dropped in almost half of the countries examined in this year’s study.

Given the global recession, the software piracy picture could have taken a dramatic turn for the worse. But progress is being outstripped by the overall increases in piracy globally — and highlights the need for governments, law enforcement and industry to work together to address this vital economic issue.

Below are key findings from this year’s study:

Commercial value of software theft exceeds $50 billion: the commercial value of unlicensed software put into the market in 2009 totalled $51.4 billion.

Progress on piracy held through the recession: the rate of PC software piracy dropped in nearly half (49%) of the 111 economies studied, remained the same in 34% and rose in 17%.

Piracy continues to rise on a global basis: the worldwide piracy rate increased from 41% in 2008 to 43% in 2009; largely a result of exponential growth in the PC and software markets in higher piracy, fast growing markets such as Brazil, India and China.

Download Links:

Seventh Annual Global Software Piracy Study

Study in Brief

Global Press Release

Ted.

[cyb3rl0rd1867]

It's unlikely that $50 billion dollars was actually stolen since I would venture to say that most "pirates" would not have paid for the software anyway. They would have probably used a freeware/shareware/open source alternative The loss to the companies is therefore not as large as that sum of money.