$8 billion lost to piracy in Asia Pacific last year: IDC-BSA study

Our Corporate Bureau
18 May 2005

Mumbai: Fifty-three percent of the software installed on personal computers in the Asia Pacific was pirated in 2004, the same level as in 2003. However, losses due to software piracy increased from US$7.5 billion to almost US$8 billion.

These are among key findings of a global software piracy study released today by the Business Software Alliance (BSA), the international association of the world's leading software developers. In April, 2005, BSA and NASSCOM had kointly launched a hotline to track down software piracy in India. (See: ) The independent study, which indicates that software piracy continues to be a major challenge worldwide, was conducted by global technology research leader IDC.

"Worldwide, one out of every three copies of software in use today has been obtained illegally," said BSA president and CEO Robert Holleyman. "These losses have a profound economic impact in countries around the world.Every copy of software used without proper licensing costs tax revenue, jobs, and growth opportunities for burgeoning software markets."

In 2004, the world spent more than $59 billion on commercial packaged PC software, up from $51 billion in 2003. However, over $90 billion was actually installed, up from $80 billion the year before.

Launching the study in Singapore, Jeffrey Hardee, vice president and regional director, Asia, said, "Software piracy remains a major concern for Asia Pacific countries. While many governments have taken steps to better protect intellectual property rights, much remains to be done in order for there to be substantial reduction in software piracy levels. The software industry is a proven engine for growth. Strong resolve in ensuring IP protection is essential if countries in the region are to see continued innovation and investment."

The study finds that software piracy rates in Asia Pacific range from a high of 92 per cent in Vietnam to a low of 23 per cent in New Zealand. The Asia Pacific region has the fourth highest average piracy rate and three of the world's top five pirating countries are in the region.