Worldwide Software Piracy Rate Holds Steady at 35%

According to the fourth annual global PC software piracy study by the Business Software Alliance, 35% of the software installed in 2006 on personal computers worldwide was obtained illegally, amounting to nearly $40 billion in global losses. In China, the piracy rate dropped 10% since 2003 ($864 million saved in losses) while the legitimate software market in China grew to nearly $1.2 billion in 2006, an increase of 88% over 2005. In Russia, piracy fell 7% since 2003. BSA, an international association representing the commercial software industry, used IDC, the information technology industry's leading global market research and forecasting firm, to conduct the study independently. IDC used proprietary statistics for software and hardware shipments and enlisted IDC analysts in fifty countries to confirm software piracy trends.

Worldwide, for every two dollars of software purchased legitimately, one dollar was obtained illegally. Global losses increased in 2006 by more than $5 billion (15%) over the previous year. Of the 102 countries covered in this year's study, piracy rates dropped moderately in 62 countries, while increasing in 13. "The good news is we are making progress, however, we still have a lot of work to do to reduce unacceptable levels of piracy. 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. The critical elements of the global fight against software piracy are education, strong government policy, and enforcement," said BSA President and CEO Robert Holleyman.

View: Average Regional Piracy Rates in 2006
News source: BSA Press Release

Report a problem with article
Previous Story

Nvidia Geforce 8 ForceWare 158.43 Beta (Vista)

Next Story

Microsoft Unveils Microsoft Math 3.0

10 Comments

Commenting is disabled on this article.

I find it interesting (as I see some of you do also) that they can claim loss revenue relating to piracy. In my opinion the people that pirate software becuase they wouldnt buy it (either due to price or because they want to try it fully functional for a single use).

Therefore there is no loss if the person wouldn't have bought it in the first place.

I'm curious on a percentage basis what are the most pirated packages.

I know a lot of people rip off Windows, Office, and Photoshop, but a lot of people buy them too. I wonder if there are niche applications with a 80, 90, or higher percentage knockoff copies.

I would imagine the ones that cost more than say $80-100 dollars or the ones that have several versions with all the most useful ones reserved for the $x00 dollar version would be the most pirated.

Most of my software is legitimate but ive cracked a few things in the past mainly tools like video conversion tools say where ive needed to convert a one off video and the "demo" version only does the first 30 seconds or so so rather than pay $70-80 dollars I just downloaded a quick crack.

After that usage I probably wasent ever going to intend on using it again and usually it got uninstalled so they cant rearlly claim monetry loss on something I had no intention of buying in the first place.

The Software Business Alliance makes their income from INFLATING figures. Without that, they would be out of business and have no income. Just like every one of these "watch" groups do.

The worse they can make it, the more they get donated to them.

uh where exactly did they get these statistics from? and even if they are true wordwide and north america/europe would vary to much gretaer degrees, obviously in bangladesh someone would rather pay a dollar for software off the street corner but for western countries unless you have a large china town or a chinese mall you have to download software yourself which most people dont know how to do therefore western countries probably have a less than 5% piracy rate for software while developing countries probably have anywhere from 40%-80%. Again my statistics are rough estimates but theyre still more acurate than this one.