Global software loses $11.7bn to piracy: BSA organization.

BSA Organisation

Result from an annual study carded out for the Business Software Alliance (BSA), a watchdog group representing the world's leading software manufacturers, show that the UK software industry lost 346 million [pounds sterling] in 2000 due to business software piracy. The rate of piracy remained the same, at 26%, revealing that for the second year running, over one in four pieces of business software in the UK is pirated.

International Planning and Research Corporation (IPR), an independent research company, conducted the survey for BSA. The study highlights the serious impact of copyright infringement with piracy losses exceeding $11.7 billion world-wide in 2000, resulting in lost jobs, wages, tax revenues and a potential barrier to innovation and product development around the world.

Mike Newton, UK programme manager for the BSA, said, 'Although the UK piracy rate has remained static at 26%, this is still an incredibly high figure. In an effort to curb software piracy in the UK and world-wide, the BSA continues to implement educational and enforcement activities and work with governments around the world to support its efforts to address the software piracy problem.' For the first time in the study's history the 2000 world piracy rate did not decline, but remained almost constant with the 1999 rate, with a one percentage point increase to 37%. The dollar losses due to piracy declined 3.5% from 1999 from $12.2 billion to $11.7 billion. North America, Asia/Pacific and Western Europe once again account for the majority (87%) of revenue losses.

The piracy rates for Western Europe in 1999 and 2000 are as follows:

The ten countries with the highest piracy rates are (in rank order):

Regional Summaries--Western Europe, Eastern Europe, North America, Asia/Pacific, Latin America and Middle East & Africa.

Western Europe: At 34%, Western Europe continued to be the region with the second lowest piracy rate in 2000 but it experienced the second highest dollar losses, hitting just over $3 billion. This amount accounts for 26% of the total global losses due to software piracy. Western Europe was the region with the smallest change in its piracy rate from 1999. The largest dollar losses due to software piracy occurred in Germany ($635 million), United Kingdom ($530 million) and France ($480 million). The highest piracy rates were in Greece (66%), Spain (51%) and Italy (46%). This is the third consecutive year Greece and Spain had the highest software piracy rates in Western Europe.

Eastern Europe: In 2000, Eastern Europe continued to have the highest piracy rate at 63%, leading to a loss of nearly $405 million. Russia and the Ukraine and other CIS countries continue to have the highest piracy rates in this region, with 88% and 89% respectively. Poland, the third largest country in the region, reduced its piracy rate between 1999 and 2000 by six percentage points, to 54%.

North America: The North American region continued to be the region with the lowest piracy rate at 25%. During the past six years, the region's piracy rate has declined from 32% to 25%. In the 2000 study, North America accounted for the third highest piracy losses totaling $2.9 billion. Asia/Pacific and Western Europe exceeded North America with losses totaling more than $4.1 billion and $3.1 billion, respectively. In 2000, the piracy rates in the United States declined to 24%, and in Canada, the rate dropped three percentage points to 38%. During the past six years, the North American piracy losses totaled more than $22 billion. In 2000, total losses due to software piracy in the United States were nearly $2.7 billion and nearly $305 million in Canada.

Asia/Pacific: This region was the only region that increased its piracy rate in 2000, to 51%, from 47% in 1999. in addition, Asia/Pacific accounted for the largest piracy losses at nearly $4.1 billion or 35%. Japan's piracy rate increased to 37%, Korea increased to 56% and China increased to 94%. The countries with the highest piracy rates were Vietnam (97%), China (94%) and Indonesia (89%). The countries with the highest dollar losses were Japan ($1.6 billion), China ($1.1 billion) and Korea ($302 million).

Latin America: While the Latin American region saw a decline in its piracy rate from 1999 to 2000, it became the second highest region in 2000, with a piracy rate of 58%, ahead of the Middle East at 57%. Latin American piracy cost the industry $869 million. The countries with the highest piracy rates were Bolivia (81%), El Salvador (79%) and Nicaragua (78%). Once again-', at 49%, Chile was the country with the lowest piracy rate in Latin America. Brazil and Mexico, the two largest economies in the region, saw a constant piracy rate, with no change between 1999 and 2000. Their current rates are 58% and 56%, respectively. Argentina, the third largest economy in the region, was also at 58%.

Middle East & Africa: In 2000, the Middle East and Africa had the third highest piracy rate at 55%. The countries with the highest software piracy rates were Lebanon (83%), Qatar (81%) and both Bahrain and Kuwait (80%). Software piracy costs this region $376 million. The three largest economies in the Middle East, Turkey, Israel and Saudi Arabia, each saw a decline in the piracy rate last year. Turkey's rate reduced the greatest, from 74% in 1999 to 63% in 2000. Israel had the lowest piracy rate in the region (41%). Saudi Arabia's piracy rate declined from 64% in 1999 to 59% in 2000. Africa was the region with the largest drop in the piracy rate. This year, piracy was 52%, down from 56% in 1999. A falling piracy rate with, a strong economy indicates a long-lasting decline in piracy and a mote substantial change in sol, are practices.

This is the sixth study conducted by International Planning & Research (IPR). The study evaluated sales data and market information for 85 countries in the six major world regions and was based on 26 different business software applications. The study compares 2000 piracy rates and dollars lost to software piracy between 1994 and 1999. These figures are available at:

www.bsa.org.

                      1999    2000

Austria                36%     37%
Belgium/Luxembourg     36%     33%
Denmark                29%     26%
Finland                30%     29%
France                 39%     40%
Germany                27%     28%
Greece                 71%     66%
Ireland                51%     41%
Italy                  44%     46%
Netherlands            44%     40%
Norway                 37%     35%
Portugal               47%     42%
Spain                  53%     51%
Sweden                 35%     35%
Switzerland            33%     34%
UK                     26%     26%
Total                  34%     34%

                      1999    2000

Austria                36%     37%
Belgium/Luxembourg     36%     33%
Denmark                29%     26%
Finland                30%     29%
France                 39%     40%
Germany                27%     28%
Greece                 71%     66%
Ireland                51%     41%
Italy                  44%     46%
Netherlands            44%     40%
Norway                 37%     35%
Portugal               47%     42%
Spain                  53%     51%
Sweden                 35%     35%
Switzerland            33%     34%
UK                     26%     26%
Total                  34%     34%