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Piracy goes unabated in Asian countries: study
INCREASING losses in dollar and a shrinking software market are two main causes of concern for the global software industry today. This was indicated in the Eighth Annual BSA Global Software Piracy Study, a collection of facts and figures that highlight the problems of the depressed software market.
The study is made by the Business Software Alliance, a global coalition of software houses, to fight software piracy. It reviews the available data and uses a systematic method to determine the worldwide business software piracy rates, the resultant dollar losses, and the latest trends.
In the study, software piracy is measured as the magnitude of business application software installed in 2002 without a licence. The BSA encountered slow progress in combating these high levels of piracy.
Pakistan remained in the top ten of the worst software offenders in the world. About 83 per cent of all software used and sold here is pirated. It is, in fact, seventh on the list of the countries with the highest software piracy rates. This unenviable position has resulted in retail software revenue lost due to piracy, equalling a staggering $1.3 billion.
The $13billion loss last year, which is only slightly largest than the $12.3billion recorded in 1994, has been attributed to reduction in the price of software and the rate of software piracy that have largely offset growth in the software market.
The continued economic downturn that has forced companies to curtail their IT budgets, has been attributed to not only the high levels of piracy, but also the continued downturn in the software industry itself.
Dollar losses in the Asia/Pacific region rose to over $5billion, surpassing all regions. As Western Europe and North America region has the largest PC and software markets, its relatively low piracy rates still translate into large dollar losses.
All is not lost in the battle to control piracy as every country, except Zimbabwe, has recorded a reduction in its rate of software piracy since 1994. UAE improved the most, reducing its piracy rate by 50 points. Even in Asia/Pacific region, the piracy rate improved by 13 points.
Japan had the largest drop in piracy in the region, registering a decline of 31 points, from 66 per cent piracy in 1994 to 35 per cent in 2002. The Philippines and Korea each had impressive changes in their piracy rates. The Philippines dropped twenty-six points, from 94 per cent in 1994 to 68 per cent in 2002.
Even Pakistan, where piracy enforcement is rather lax, software piracy recorded a three per cent drop from 83 per cent in 2001 to 80 per cent in 2002. This appears to be a good sign.
The writer is a Dawn sub editor
Need for commitment
Is piracy harmful to the local software industry?
Absolutely. BSA members in Pakistan are discouraged from producing software because of piracy. We are here to help them, but basically it is the Pakistan government that should takes effective steps to help the local software industry.
We have explained to all the relevant quarters in Islamabad as well as in Karachi . . . that a viable working environment must be ensured to allow the local software industry to prosper, and to encourage international software houses to set up business in Pakistan.
Is it correct that the people who want to buy legitimate software can’t seem to find it here?
Because of the high levels of piracy, the local resellers are reluctant to keep and sell legitimate software. As there is 80 per cent software piracy, local resellers feel discouraged.
We’re working with the government as well as local resellers to spread awareness that by curbing piracy they would be helping themselves, the national economy and the software business. They would also be supporting the future of the IT graduates may not be able to find jobs because of piracy.
What do you want from the government?
We know the government has an interest in curbing piracy. What’s needed is a commitment from all government departments to eradicate piracy. There is a feeling that the government doesn’t know the gravity of the problem.
Would you say the government has other priorities?
Every government has other priorities. But what Pakistan government needs to realize is that almost every country today wants to have an indigenous software industry and Pakistan is an exception. With such high levels of piracy in this country it is hard to see how Pakistan can develop a viable software industry.
Some users say software prices are too high in Pakistan . . .
The pricing is not an issue here. Most BSA members have special discounts for the education sector. These discounts are as high as 90 to 97 per cent.
We know for a fact that schools, colleges and even hospitals are using pirated software. They are breaking the law, but we are not against them. We are against those companies and individuals that are using pirated software for commercial work.
Has the BSA tried to explain to the business sector the benefits of using legitimate software?
BSA and its members have been in touch with the officials of trade associations, businesses, retailers, end-users . . . and explained to them the benefits of using legitimate software. We have asked them to help us, at the least, to limit the spread of piracy in Pakistan.
Does the BSA extend support to the local computer assemblers?
The BSA members are helping local businesses that want to deal in legal software. Our members give them discounts and extend the payment regimes. We want to help them promote legal business. But such companies are in a minority. Majority of resellers are openly selling and downloading illegal software.
Today, 90 per cent of the web sites where software is available are selling pirated software. And 90 per cent of that software belongs to BSA members.
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