Software piracy may worsen this year

Software piracy globally may worsen this year as the financial crisis forces consumers to hold back on new purchases and widespread usage of the internet encouraging users to download pirated software.

In the Middle East and Africa region, the software piracy rate of 59 per cent is driven by the rapid growth in computer sales and the availability of bootleg programmes online.

The annual survey by the Business Software Alliance (BSA) and industry research firm IDC showed that in 2008 the global average of unlicensed software worsened to 41 per cent in 2008 from 38 per cent the previous year, causing losses of almost $53 billion, the study said.

"The economic crisis is likely to have a bigger effect on software piracy in 2009," it said. "Since consumers are more likely to hold on to their PCs longer, this may result in increased software piracy because older computers are more likely to have unlicensed software."

Jeffrey Hardee, BSA's Vice President and Regional Director, said last year's increase in software piracy rate was due to the rapid growth in computer sales. "Even if piracy were to go down in every high-piracy country, their growing market share for PCs could drive the regional average up."

"The availability of pirated software on the internet, which ironically is facilitated by increasing broadband penetration in the region, is also a major concern," said Hardee.

Software includes operating systems, systems software like databases and security packages and application software like office packages, finance and tax packages and PC computer games. Bangladesh was the biggest culprit in the Asia-Pacific last year with a piracy rate of 92 per cent, followed by Sri Lanka at 90 per cent and Pakistan at 86 per cent, the study showed.

Japan had the lowest rate, at 21 per cent, followed by New Zealand at 22 per cent and Australia at 26 per cent.

In China, the average piracy rate dropped to 80 per cent last year from 82 per cent in 2007, the study showed. The improvement in China is due to "more vigorous enforcement and education," it said.

Central and eastern Europe had the world's highest software piracy rate last year with an average 66 per cent.

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