Out-Law News 1 min. read

Software piracy declines worldwide


The global piracy rate for commercial software declined to 39% in 2002, 10% below its 1994 all-time high, according to the Business Software Alliance's latest figures. However, financial losses due to piracy have increased.

The BSA, which represents leading software publishers worldwide, announced the results of its eighth annual piracy study on Monday. It claims that every country except Zimbabwe has reduced its rate of piracy since 1994, the year in which the study was first commissioned.

In the new figures, the US piracy rate is shown at an all-time low of 23%, currently the lowest piracy rate in the world. The UK's figure is 26%. Overall, the figures represent the first decline of the piracy rate since an all-time low of 36% was set in 1999.

Robert Holleyman, president and CEO of BSA, commented:

"Although we've made significant progress over the years to reduce the piracy rate, no level of piracy is acceptable. BSA is committed to continue working with governments, organizations and law enforcement agencies worldwide to raise awareness and keep piracy on a downward trend."

It was not all good news, however. The study, carried out by International Planning and Research Corporation, an independent research firm, found that worldwide dollar losses due to piracy increased from $10.97 billion in 2001 to $13.08 billion in 2002. The 19% rise can be attributed to generally higher software prices, despite the continued downturn, smaller software shipments and slightly lower piracy rates.

The Middle East and Africa showed the greatest reduction in piracy, from 80% in 1994 to 49% in 2002, with the United Arab Emirates showing a 50-point drop, from 86% in 1994 to 36% in 2002.

Latin America's regional piracy rate dropped 23% in the same period, while Western Europe dropped 17%, from 52% to 35% of all installed commercial software. Denmark, Finland and the UK had the best piracy rates, with 24%, 25% and 26% respectively, but Ireland showed the biggest improvement, decreasing from 74% in 1994 to 42% in 2002.

The piracy rate in Eastern Europe has dropped from 85% in 1994 to 71% in 2002, making it the fourth most improved region. But Russia still has a very high piracy rate, currently 89%, as opposed to 95% in 1994.

The Asia/Pacific region now holds a piracy rate of 55%, with Japan showing the greatest improvement, decreasing from 66% in 1994 to 35% in 2002.

The full study is available at:
www.bsa.org/globalstudy/2003_GSPS.pdf

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