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BSA-IDC Study Illustrates Global Economic Gains From Reducing Software Piracy
Reducing Piracy 10 Points Worldwide Over Four Years Could Create 2.4 Million Jobs, $400 Billion in Growth

(I find the data awesome)

12/8/2005 9:30:30 AM


WASHINGTON, Dec 08, 2005 /PRNewswire via COMTEX/ -- Cutting the global piracy rate of 35 percent by 10 percentage points over four years could generate 2.4 million new jobs, $400 billion in economic growth and $67 billion in tax revenues worldwide, according to a new study released by the Business Software Alliance (BSA) today.

The independent research, conducted by International Data Corporation (IDC), found that every one percentage point drop in software piracy could yield $40 billion in economic benefits by jumpstarting growth in the global information technology (IT) sector. The study also concluded that while the global IT sector is currently projected to grow 33 percent through 2009, a 10- point reduction in software piracy could spur the global IT industry to grow 45 percent larger by 2009.

"When countries take steps to reduce software piracy, just about everyone stands to benefit," said Robert Holleyman, BSA president and CEO. "Workers have new jobs, consumers have more choices, entrepreneurs are free to market their creativity, and governments benefit from increased tax revenues."

Despite having the world's lowest software piracy rate, the study found that the United States stands to gain more than any other nation in the global survey from a 10-point piracy cut over four years -- boosting its economy by $125 billion. Although the U.S. IT sector is already projected to grow by almost a third between 2004 and 2009, it could grow more than 10 percentage points faster with further piracy reductions.

Countries with the highest piracy rates could capture the greatest economic gains from reducing piracy, the study found. A 10-point reduction in software piracy in China could create 2.6 million new IT jobs by 2009 -- as many IT jobs as the U.S. has been able to create through 30 years of IT leadership. Russia, a country with the fifth highest software piracy rate in the world (87 percent), could see its IT industry triple in size -- growing from $9.2 billion today to $30 billion in just four years.

The BSA-commissioned study, available online at http://www.bsa.org/idcstudy, is the only study of its kind, assessing the IT sector's economic impact in 70 countries worldwide and the benefits that accrue to countries that tighten and enforce their intellectual property laws and work to educate the public about the impact of piracy. With 1.1 million businesses worldwide, the IT industry contributes nearly $1.7 trillion a year to global economic prosperity.

Globally, a 10-point reduction in software piracy over four years could generate $67 billion in new tax revenues worldwide. Based on the Organization for Economic Cooperation and Development figures, this new revenue could provide:

* 435 million people with job training benefits
* Health care services for 45 million people
* Computers for over 33 million school children; or
* College degrees for 6.6 million people.


In addition to outlining the economic benefits that can be realized through increased copyright protection, the study also suggests that countries that want to enjoy the economic benefits promised in this study can do so by taking the following five steps:

* update national copyright laws to implement World Intellectual Property

Organization (WIPO) obligations;
* create strong enforcement mechanisms, as required by World Trade
Organization, including tough anti-piracy laws;
* dedicate real government resources to the problem, including national
IP enforcement units, cross-border cooperation, and more training for
local officers;
* improve public education and awareness; and
* lead by example by requiring the public sector to use only legitimate
software.


"With this report, we are able to further quantify the positive benefits that countries across the world can experience as a result of stronger intellectual property protection and greater education and awareness," said John Gantz, Chief Research Officer of IDC. "It provides a comprehensive snapshot of what we have known all along: reducing software piracy delivers real results in the form of more funding for education, job training, health care, and overall economic growth."

Holleyman unveiled the study today at a Washington, DC press conference. He was joined by John Gantz, Chief Research Officer and Senior Vice President of IDC, and Chris Israel, Coordinator for International Intellectual Property Enforcement at the U.S. Department of Commerce.

Methodology

Using its market data on IT industry spending, employment, and IT- generated tax revenues, IDC conducted an analysis in each of the 70 countries to determine what the impact of lowering piracy would be on spending on packaged software and how that would impact spending on related services and distribution.

About BSA

The Business Software Alliance (http://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 and its hardware partners before governments and in the international marketplace. Its members represent one of the fastest growing industries in the world. BSA programs foster technology innovation through education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce. BSA members include Adobe, Apple, Autodesk, Avid, Bentley Systems, Borland, Cadence Design Systems, Cisco Systems, CNC Software/Mastercam, Dell, Entrust, HP, IBM, Intel, Internet Security Systems, Macromedia, McAfee, Microsoft, PTC, RSA Security, SAP, SolidWorks, Sybase, Symantec, Synopsys, The MathWorks, and UGS.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology and telecommunications industries. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 775 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 40 years, IDC has provided strategic insights to help our clients achieve their key business objectives.

SOURCE Business Software Alliance

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