Internet Marketing

Major Study Finds 36 Percent of Software In Use Worldwide Is Pirated

$29 Billion in Losses Last Year

Business Internet Marketing WASHINGTON, D.C., July 7, 2004 Thirty-six percent of the software installed on computers worldwide was pirated in 2003, representing a loss of nearly $29 billion. These are the key findings of a global software piracy study released today by the Business Software Alliance (BSA), the international association of the worlds leading software manufacturers.
Conducted for the first time by global technology research firm International Data Corporation (IDC), this years BSA global piracy study incorporated major software market segments including operating systems, consumer software and local market software. In previous years, the study was limited to business software applications.

But sales of pet supplies, cosmetics and fragrances will increase faster than other categories at growth rates of over 30 percent, the report found. Last year, online sales rose 25 percent to $176.4 billion, with 28 percent growth in online purchases excluding travel. Total Internet sales in 2004 and 2003 reached $141.4 billion and $114.1 billion, respectively, Silverman said. "I think we're still looking for the next several years (for) growth over 20 percent per year, " he said, adding that growth closer to 30 percent was probably not sustainable.

Internet Marketing Strategic The inclusion of these new categories paints a broader, more accurate picture of the global software piracy problem based on IDC's extensive industry and market knowledge. The study found that while $80 billion in software was installed on computers worldwide last year, only $51 billion was legally purchased.

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Internet Marketing Seo Software piracy continues to be a major challenge for economies worldwide, said Robert Holleyman, president and CEO of BSA. From Algeria to New Zealand, Canada to China, piracy deprives local governments of tax revenue, costs jobs throughout the technology supply chain and cripples the local, in-country software industry.

Online travel spending in the U.S. during the 2005 holiday season (November 1 through December 31, 2005) totaled $8.6 billion, percent increase on last year. Last year U.S. consumers spent $7.4 billion during this period, according to comScore Networks. For the full year consumers spent $60.9 billion, percent increase on the previous year. Total Internet spending for the full year 2005, including travel, reached $143.2 billion, up 22 percent over the $117.2 billion spent online in 2004.

Ebook Internet Marketing Holleyman said the IDC study reflects a logical evolution in BSAs decade-long effort to measure piracy in the global economy. Its scope was expanded to account more accurately for trends such as the growth of local software markets worldwide and the acceleration of Internet piracy.

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Business Home Internet For its analysis, IDC drew upon its worldwide data for software and hardware shipments, conducted more than 5,600 interviews in 15 countries, and used its in-country analysts around the globe to evaluate local market conditions. IDC identified the piracy rate and dollar losses by utilizing proprietary IDC models for PC, software and license shipments by all industry vendors in 86 countries.

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Internet Marketing Site Web Among the report's key findings were the following:

Based Business Home Internet * The piracy rate in the Asia/Pacific region was 53 percent, with dollar losses totaling more than $7.5 billion.
* In Eastern Europe, the piracy rate was 71 percent, with dollar losses at more than $2.1 billion.
* In Western Europe, the rate was 36 percent, and dollar losses totaled $9.6 billion.
* The average rate across Latin American countries was 63 percent, with losses totaling nearly $1.3 billion.
* In the Middle Eastern and African countries, the rate was 56 percent on average, with losses totaling more than $1 billion.
* In North America, the piracy rate was 23 percent. The losses totaled more than $7.2 billion.

Internet Marketing Web The study found that the size of a regional software market is the critical link between piracy rates and actual dollars lost. For instance, 91 percent of software installed in the Ukraine in 2003 was pirated, as compared to 30 percent in the U.K. But dollar losses in the U.K. ($1.6 billion) were about 17 times higher than those in the Ukraine ($92.1 million). This difference is attributed to a much larger total PC software market in the U.K. than in the Ukraine.

Estate Internet Marketing Real A number of factors contribute to the regional differences in piracy, including local-market size, the availability of pirated software, the strength of copyright laws, and cultural differences regarding intellectual property rights, said John Gantz, Chief Research Officer at IDC. Unfortunately, we found that high market growth regions also tend to be high piracy regions, such as China, India and Russia. If the piracy rate in emerging markets where people are rapidly integrating computers into their lives and businesses does not drop, the worldwide piracy rate will continue to increase.

Engine Internet Marketing The fight for strong intellectual property protection and respect for copyrighted works spans the globe, and there is much work to be done, Holleyman said.

Affiliate Internet Marketing BSA will continue to work with governments to enact policies to protect software intellectual property as well as implement programs to raise business and consumer awareness about the importance of copyright protection for creative works. Lowering the piracy rate will stimulate local economic activity, generate government revenue, create job growth and cultivate future innovation.

Consulting Internet Marketing More information about the BSA's latest global piracy study can be found at www.bsa.org/globalstudy.

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About the Business Software Alliance more

Expert From Insider Internet The Business Software Alliance (www.bsa.org) is the foremost organization dedicated to promoting a safe and legal digital world. BSA is the voice of the world's commercial software industry before governments and in the international marketplace. Its members represent one of the fastest growing industries in the world. BSA educates consumers on software management and copyright protection, cyber security, trade, e-commerce and other Internet-related issues. BSA members include Adobe, Apple, Autodesk, Avid, Bentley Systems, Borland, CNC Software/Mastercam, Internet Security Systems, Macromedia, Microsoft, Network Associates, SolidWorks, Sybase, Symantec, UGS and VERITAS Software.

Firm Internet Marketing Contact
For more information, contact:

Advertising Business Internet Michael Shirer
press@idc.com
508-935-4200

Business Computer Internet Diane Smiroldo
dianes@bsa.org
703-819-1963

Center Internet Marketing Debbi Bauman
debbib@bsa.org
202-530-5132

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