SA pirates cost software manufacturers R2.4 billion

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Credit: Giovanni Sades

The research, carried out in 111 economies, showed a decline in piracy in 54 economies and an increase in only 19. However, the global piracy rate increased from 41% to 43%, largely the result of fast growing, higher piracy markets such as China, India and Brazil increasing their share of the overall software market.

"This study makes it clear that efforts to reduce software theft in South Africa are still of vital importance. A piracy rate of 35% is far from acceptable," said Charl Everton, chairperson of the BSA committee in South Africa. "As we emerge from the most severe global economic recession in twenty years, it is essential that we continue to engage with government, businesses and consumers about the risks of stealing software and to educate the market on the true impact that software piracy has on the South African economy."

Piracy costs jobs, IT sector

IDC finds that for every US$100 (about R750) worth of legitimate software sold in 2009, an additional US$75 (about R560) was pirated. However, this issue affects more than industry revenues, as lowering PC software piracy can have significant economic benefits. A 2008 study on the economic impact of reducing software piracy found that lowering software piracy rate by ten points over four years could create a stronger local IT sector, generate new high-paying jobs and contribute to the country's economy. It estimates that for every dollar of legitimate software sold in a country, there are another US$3 -US$4 of revenue for local service and distribution firms. Piracy also puts consumers at risk by compromising their computer security, since pirated software often contains malware.

Additional findings

• Commercial value of pirated software in 2009 was US$51.4 billion (about R385.5 billion);
  
• The US, Japan, and Luxembourg continue to hold the lowest piracy rates of countries surveyed (20, 21, and 21%, respectively);
  
• Countries with the highest piracy rates include Georgia, Zimbabwe and Moldova (all higher than 90%);
  
• Forces driving piracy down included vendor legalisation programmes, government and industry education campaigns, enforcement actions, and technology shifts, such as the increased deployment of digital rights management and greater use of software asset management;
  
• Factors driving piracy rates up included rapid growth of the consumer PC market, greater activity in the installed base of older computers where unlicensed software is more prevalent and increasing sophistication of software pirates and cyber criminals.

The survey does not include software that runs on servers or mainframes. For more details on the methodology and a copy of the complete study, go to www.bsa.org/globalstudy.