January 14, 2006	Saturday	Zilhaj 13, 1426

KARACHI, Jan 13: Reducing the present 35 per cent global software piracy rate by only 10 per cent over the next four years could generate 2.4 million jobs, $400 billion in economic growth and $67 billion in tax revenues worldwide, says a latest international report.

Software has moved to the forefront of global growth industries, therefore, “even a modest and achievable 10-point reduction in software piracy enables consumers, local entrepreneurs, workers, governments and economies to benefit,” observed the report entitled “Expanding the frontiers of our digital future: reducing software piracy to accelerate global IT benefits”.

The research was conducted by the International Data Corporation (IDC), an information technology industry analysis firm, on the request of the Business Software Alliance, a group of world’s leading computer software and hardware companies.

Although every country and every region of the world stands to gain from a software piracy reduction, yet the countries with the highest piracy rates have the most to gain from the decline, it notes.

“Pakistan having a high rate of 82 per cent software piracy may achieve great benefits from the reduction in piracy,” commented the co-chairman, Business Software Alliance, Middle East, Al Redha.

The countries that want to enjoy the economic benefits promised in this study can do so by taking five steps, the report suggests. They should update national copyright laws to implement World Intellectual Property Organization (WIPO) obligations; create strong enforcement mechanisms as required by the World Trade Organization (WTO); dedicate real government resources to the problem; improve public awareness; and lead by setting an example by requiring the public sector to use only licensed or legal software.

The study, based upon findings of the IT sector’s economic impact in 70 countries, observed that software piracy had become a global phenomenon and in the year 2004, the world spent more than $59 billion for commercial packaged computer software. Yet, software worth over $90 billion was actually installed and the remaining $31 billion was stolen.

The IT sector was projected to see a rapid 33 per cent growth between the years 2004 and 2009, according to the IDC.

However, this sector could instead grow 45 per cent larger over the same period with the help of a 10 per cent reduction in software piracy. “So the countries could generate an average 12 points of additional growth between 2004 and 2009, with a 10-point reduction in piracy,” the study estimated.—APP