India sold pirated s/w worth $2.7 bn in 2010

DQW Bureau
New Update


With rising awareness of

the problems of software piracy, India witnessed a slight drop in the

use of pirated software in 2010. According to the findings of the 8th

Annual href="">IDC-Business

Software Alliance (BSA) 2010 Global Software

Piracy Study, India witnessed a single percentage drop in piracy rate

for PC software in 2010 down to 64%, as compared to 2009. However,

this rate is slightly higher than the Asia Pacific rate of 60%.

With that rate, the

commercial value of unlicensed software installed on personal

computers in India touched $2.739 bn in 2010, whereas the global

losses stood at $58.8 bn, according to BSA.

India's piracy rate

has dropped 10% since 2004

In total, India's piracy

rate has dropped 10% since 2004, where it stood at 74%, and thus, a

continuous drop but a very slow one, the study added. BSA said

businesses and consumers around the world bought $95 bn worth of

legal personal computer (PC) software in 2010. The study observed

that governments face an urgent need to drive down software piracy

levels in order to harness the economic benefits of a domestic

genuine and legal software product ecosystem and respect for

Intellectual Property Rights.


“These findings show

that there has been a gradual progress in reducing the software

piracy rate in India, but what is needed is a speedier drop as

India's PC market grows in size,” said Keshav S Dhakad, chair,

BSA India.

“The further we reduce

software piracy and grow the legitimate software product market, the

greater the benefits to the Indian economy in terms of added new

jobs, increase in government's legitimate tax collections,

contribution to GDP, respect for intellectual property, growth of the

domestic IT product industry and PC/IT security to the nation as a

whole,” he said.

India requires an

accelerated and focused programs

According to him,

“Although government and industry must be commended for the efforts

that are underway to tackle this menace, India requires an

accelerated and focused programs and initiatives to educate PC users

and companies on the benefits of legal and licensed software and how

it causes economic losses to the local industry and creates serious

cyber security vulnerabilities.”


Major gap between PC

shipments and paid software licenses

The study also indicates

that while the number of PCs shipped to emerging economies like India

in 2010 accounted to more than 50% of the world total, paid software

licenses accounted for less than 20% of global sales in 2010.

This piracy study,

conducted by BSA in partnership with IDC, also includes a new

dimension this time: a public-opinion survey of PC users on key

social attitudes and behaviors related to software piracy, conducted

by Ipsos Public Affairs. BSA said the opinion survey found strong

support for intellectual property rights especially in developing

economies to promote more technology advances. Majority of the

respondents from developing markets say inventors should be rewarded

and intellectual property development benefits the local economy.

The survey also found

widespread recognition that licensed software is better than pirated

software, because it is understood to be more secure and more

reliable. “Software piracy has broader implications which

transcends beyond the realm of software industry and it impacts the

health of nation's economy, Business risks for industry,

opportunity losses for small business/service firms/ consumers,

reduces government tax revenues,” said Anjan Das, executive

director -technology, Confederation of Indian Industry (CII).


The study said that half

of the 116 geographies studied in 2010 had piracy rates of 62% or

higher, with the global average piracy rate at 42%.

Emerging economies

driving force behind piracy

Emerging economies have

become a driving force behind PC software piracy. Piracy rates in the

developing world are 2.5 times higher than those in the developed

world, and the commercial value of pirated software ($31.9 bn)

accounts for more than half of the world total, it added.

“Today's study shows

that while piracy continues to threaten the global economy, people

clearly understand and appreciate the value of intellectual property,

especially its role in driving economic growth,” said Robert

Holleyman, president and CEO, BSA He said software theft continues

to stifle IT innovation, job creation, and economic growth around the