Skip to main content

Global Losses From Software Piracy Growing

A new study conducted by IDC for the Business Software Alliance finds that about 35 percent of the software installed in personal computers worldwide is pirated—and that’s a number which hasn’t changed much since 2003. What has changed is the amount of money the software industry is losing to piracy: according to the BSA, for every two dollars earned from legitimate software sales, another dollar goes to software pirates. In 2006, losses totaled almost $40 billion worldwide—$5 billion more than the estimated losses from 2005. Over the next four years, the study predicts loses will amount to more than $180 billion.

The results are part of the BSA’s fourth annual study of global PC software piracy. The survey covered 102 countries, and found that piracy rates declined "moderately" in 62 countries, while increasing in 13 nations.

"The good news is we are making progress, however, we still have a lot of work to do to reduce unacceptable levels of piracy," said Robert Holleyman, BSA President and CEO, in a statement. "These significant losses translate into negative impacts on IT industry employment, revenues, and financial resources available for future innovation and the development of new technologies."

Surprisingly, the study found that China, long known as a hotbed of software and media piracy, dropped its piracy rate by four percentage points—and that’s actually a continuation of a downward trend which has seen the country shave ten points off its piracy rate in three years’ time. Of course, all things are relative: for 2006, China’s piracy rate stood at 82 percent, down from 92 percent in 2003. The study also found Russia’s overall piracy rate declined from 87 percent in 2003 to 80 percent in 2006.

The United States and Western Europe saw relatively static piracy rates of 22 percent and 36 percent, respectively.

Of the 102 countries included in the survey, roughly one third had software piracy rates over 75 percent. The study also found that while Latin America, Eastern Europe, the Middle East, Africa, and the Asia Pacific region account for about one third of all PC shipments, they represent only about 10 percent of spending on PC software.

"A number of factors contribute to regional differences in piracy: the strength of intellectual property protection, the availability of pirated software, and cultural differences," said IDC chief research officer John Gantz. "Reducing software piracy around the world will take much more work and investment, but those efforts will pay off in the form of stronger local IT industries that drive broader economic growth."

Editors' Recommendations

Geoff Duncan
Former Digital Trends Contributor
Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…
How to build a PC from scratch: A beginner’s guide
Installing RAM in a desktop PC.

Building a PC for the first time, or even the second or third time, can feel a little intimidating. But one of the best parts about building a computer is that, for the most part, the parts fit where they should, and don't fit where they shouldn't. A graphics card will fit in the graphics card slot, and good luck putting the CPU in the wrong socket.

With a little care, time, and this handy guide, you can build a PC without hassle. We're here to walk you through it.

Read more
This Lenovo 2-in-1 laptop is discounted from $970 to $640
The Lenovo IdeaPad Flex 5 against a white backdrop.

If you can’t decide between a laptop or a tablet, Lenovo has the laptop deals for you, with a huge discount on the Lenovo IdeaPad Flex 5 2-in-1 laptop. Ordinarily priced at $970, it’s down to $640 at Lenovo, so you’re saving $330. Lenovo's estimated value prices can be a little optimistic, but this is a good value regardless. Whatever the discount, we do know that $640 for this laptop is pretty sweet. Here’s what you need to know about it before you buy.

Why you should buy the Lenovo IdeaPad Flex 5
Lenovo makes some of the best 2-in-1 laptops knowing how to get the most from the concept. This particular model has an AMD Ryzen 7 7730U processor paired up with 16GB of memory and 1TB of SSD storage so it’s pretty capable of handling a lot of your working needs.

Read more
Doorbuster deal drops the price of this Lenovo laptop from $2,009 to $779
The Lenovo ThinkPad L13 Yoga, folded as a tablet.

Lenovo has one of the biggest laptop deals today with a huge $1,230 off the Lenovo ThinkPad L13 Yoga Gen 3. Lenovo’s estimated value system tends to be a little optimistic, so the original price of $2,009 may be a bit unrealistically high. However, what we’re certain of is that $779 for a 2-in-1 laptop of this kind is pretty great. If you’re keen to know more, read on and we’ll tell you all the details.

Why you should buy the Lenovo Thinkpad L13 Yoga Gen 3
The Lenovo Thinkpad L13 Yoga Gen 3 has a lot to like. It has an AMD Ryzen 7 Pro 5875U processor along with 16GB of memory and 256GB of SSD storage. Storage might be a little on the low side but that just means that the Lenovo Thinkpad L13 Yoga Gen 3 is best suited for general use rather than any power user needs.

Read more