Computer Crime Research Center


91% of piracy rate in Ukraine, study

Date: May 19, 2005
Source: IDC

hirty-five percent of the software installed on personal computers worldwide was pirated in 2004, a one percentage point decrease from 36 percent in 2003. Yet, losses due to piracy increased from $29 billion to $33 billion.

These are among key findings of a global software piracy study released today by the Business Software Alliance (BSA), the international association of the world's leading software developers. The independent study, which indicates that software piracy continues to be a major challenge worldwide, was conducted by global technology research leader IDC.

"Worldwide, one out of every three copies of software in use today has been obtained illegally," said BSA President and CEO Robert Holleyman. "These losses have a profound economic impact in countries around the world. Every copy of software used without proper licensing costs tax revenue, jobs, and growth opportunities for burgeoning software markets."

In 2004, the world spent more than $59 billion on commercial packaged PC software, up from $51 billion in 2003. But over $90 billion was actually installed, up from $80 billion the year before. The increase in losses to $33 billion was, in part, the result of the fact that the PC software market grew over six percent and the U.S. dollar fell against many of the world's currencies.

Among the key findings:

- Although piracy rates decreased in 37 countries, they increased in 34 countries. They remained consistent in 16 countries.

- In more than half the 87 countries studied, the piracy rate exceeded 60 percent. In 24 countries, the piracy rate exceeded 75 percent.

- The countries with the highest piracy rates were Vietnam (92 percent), Ukraine (91 percent), China (90 percent), Zimbabwe (90 percent) and Indonesia (87 percent).

- The countries with the lowest piracy rates were the United States (21 percent), New Zealand (23 percent), Austria (25 percent), Sweden (26 percent), and United Kingdom (27 percent).

- The emerging markets in Asia Pacific, Latin America, Eastern Europe and the Middle East and Africa account for over one-third of PC shipments today, but only a tenth of spending on PC software.

A primary factor in determining losses due to piracy in a specific country is the size of that country's software market. For instance, at 21 percent, while the United States had the lowest piracy rate of all countries studied, it also had the greatest losses - $6.6 billion. That amount is almost double the amount lost in the country with the second highest losses, China, at $3.5 billion. In very large software markets, comparatively low piracy rates still amount to huge losses.
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