The study – a global assessment of the IT sector’s economic
impact, carried out by International Data Corporation (IDC) –
reveals that the UK’s software piracy rate is a relatively low one
of 27%; but a successful piracy crackdown could still jumpstart
growth in the sector.
At present, the domestic IT sector will grow 30% through 2009,
but a 10% reduction in the software piracy rate could increase that
growth to 37% over the same period.
The UK IT sector currently includes 64,296 IT businesses,
employs 534,718 people and contributes £25.9bn in tax revenues. It
is valued at £39.8 billion. However, a 10% reduction in the UK’s
software piracy rate between 2006 and 2009 could increase this
value to £54.5 billion, says IDC.
It could also create an additional 33,874 high paying IT jobs, a
further £10.9 billion in contributions to the UK’s GDP (Gross
Domestic Product) and an additional £2.8 billion in tax
revenues.
"The software industry has a key role in the UK economy and acts
as a catalyst for productivity and growth," said Janet Anderson MP,
Chair of the All Party Parliamentary Group on Intellectual Property
Protection. "Piracy stifles innovation and creativity and clearly
has a significant impact on employment, economic growth and public
spending.”
A 10% reduction in the global piracy rate (currently 35%) could
spur the global IT industry to grow 45% larger by 2009, says IDC.
Worldwide, 2.4 million new jobs could be generated, economies could
grow by $400 billion and $67 billion in tax revenues could be
created.
Without this reduction IDC predicts that the industry will grow
only 33% in that time.
Within the EU, the largest IT sector in the world behind the US,
a 10% drop in the EU piracy rate (also currently 35%) by 2009 could
generate $88 billion in additional economic growth, $25 billion in
additional tax revenues, and add an additional 155,000 IT
jobs.
Siobhan Carroll, Regional Manager, Northern Europe, for BSA
commented: “The software industry is a powerful driver of economic
benefits in the UK and across the EU and is becoming increasingly
important as we move into a knowledge economy.”
“But the current contribution represents a fraction of the
potential economic gains that could be felt in and beyond the
software industry. More needs to be done to protect the value of
intellectual property in terms of education, legislation and
enforcement if the UK wants to realise the potential benefits of
the IT industry,” she warned.
The study sets out five steps that countries should take in
order to increase intellectual property protection and crack down
on software piracy. It recommends that nations:
- Update national copyright laws to implement World Intellectual
Property Organisation (WIPO) obligations;
- Create strong enforcement mechanisms, as required by the World
Trade Organisation, including tough anti-piracy laws;
- Dedicate government resources to the problem, including
national IP enforcement units, cross-border cooperation, and more
training for law enforcement;
- Improve public education and awareness; and
- Lead by example by requiring the public sector to use only
legitimate software.
The European Union has already adopted a civil “Enforcement
Directive”, which will help EU copyright holders enforce their
rights. It is due to be implemented by April next year.
In the UK, the Government recently announced an independent
review into intellectual property rights, looking at the way in
which the Government administers the awarding of intellectual
property rights, and the support given to consumers and
business.
