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By Candace Lombardi
Posted on ZDNet News: May 23, 2006 4:41:00 PM

Software piracy resulted in a loss of $34 billion worldwide in 2005, a $1.6 billion increase over 2004, according to a study commissioned by the Business Software Alliance.

The study, conducted by information-technology research firm IDC, found that roughly one out of every three copies of personal computing software installed in 2005 was pirated. While the rate of piracy has fluctuated from country to country, globally it has remained steady since 2004.

"The piracy is the same rate, but overall more software and PCs were actually shipped in 2005," John Gantz, chief research officer for IDC, said Tuesday.

China, Russia and India have seen two or more point drops in their piracy rates, while piracy has actually increased in 19 countries. But after the U.S., China also saw the highest revenue loss, $3.9 billion. That's because the PC market in China expanded in 2005.

"In Asia Pacific, over half the countries went down and yet the average went up. That's because the amount of PCs going into India and China became a much bigger part of the total. They have an increased share in the PC market overall," Gantz said.

The United States had the lowest piracy rate--21 percent--of any country. It was followed by New Zealand, with 23 percent, and Austria and Finland, both with 26 percent piracy rates.

But the U.S. also lost the most amount of money, $6.9 billion, due to piracy.

Topping the list of countries with high software piracy rates are Vietnam and Zimbabwe, each with 90 percent; Indonesia with 87 percent; and China and Pakistan with 86 percent.

The BSA defines pirated software three ways: as a purchased, legal copy that is installed on more computers than the copy is licensed for; as software that is illegally sold or distributed; and as software that is downloaded from the Internet but never paid for.

Gantz said IDC keeps a daily watch on the PC market, collecting surveys and inventory data. Piracy percentages and figures are calculated from the amount of PC units shipped, the amount of software packages deployed and paid for, and from deductions for variables like open-source software options. The remainder is considered pirated software.

  • Talkback
  • Most Recent of 71 Talkback(s)
losing money?
The idea that money lost on a software maker's part due to piracy is the piracy figure times the cost of legitimate software is bogus. Many of the people who pirate software would not have bought the... (Read the rest)
Posted by: threegoalman Posted on: 09/11/06 You are currently: Logged In | Log out
bogus figures Linux Geek   | 05/23/06
Not a fair report on loss rem1010   | 05/23/06
Consumers consider it to be their "right" ... George Mitchell   | 05/23/06
Every convict sent to prison thought it was their "right". No_Ax_to_Grind   | 05/23/06
OK BlackDiamond   | 05/23/06
Still maxo_z   | 05/23/06
hey no ax what a sec here toxicfreak   | 05/23/06
And those "kids" No_Ax_to_Grind   | 05/23/06
Then that kids grows up voska   | 05/23/06
And then serves his prison sentence. No_Ax_to_Grind   | 05/23/06
And the cycle continues voska   | 05/24/06
How was cost determined? Dan__   | 05/23/06
You worded it much better than I did rem1010   | 05/23/06
Doing Some Cipherin' Here DannyO_0x98   | 05/24/06
well its about time toxicfreak   | 05/23/06
TalkBack: Reply to message

Re: well its about time
 mKind   | 05/23/06
Come, you know they are right. No_Ax_to_Grind   | 05/23/06
Re: Come, you know they are right. Not average Joe   | 05/23/06
Well, considering you work at Geek Squad itanalyst   | 05/23/06
What would you know about real work? No_Ax_to_Grind   | 05/23/06
And you know about real work? itanalyst   | 05/23/06
Enough to own a plane to come kick your... No_Ax_to_Grind   | 05/23/06
Yeah, suuuuure you do gramps itanalyst   | 05/23/06
Geek Squad eh? PhantomX   | 05/23/06
guilty until proven innocent eh? Spicoli the Cannoli   | 05/23/06
I guess you never see other machines then. No_Ax_to_Grind   | 05/23/06
I am NOT an IT person! Spicoli the Cannoli   | 05/23/06
That will be dead in a few years too. osreinstall   | 05/23/06
Nah, can't be outsourced, and people will always need a home Spicoli the Cannoli   | 05/23/06
Well then you are clearly in no position No_Ax_to_Grind   | 05/23/06
have brain, do you?.. Spicoli the Cannoli   | 05/23/06
You need a new bank then voska   | 05/24/06
Simply not true voska   | 05/23/06
How do you see so man y PCs voska   | 05/24/06
What costs even more... BitTwiddler   | 05/23/06
Yep, and it would cost Microsoft MORE if they could prevent piracy. DonnieBoy   | 05/23/06
Another thing, it is NOT just those that could not afford Windows/Office, DonnieBoy   | 05/23/06
And, yet another point. MS could prevent piracy if they wanted to. DonnieBoy   | 05/23/06
Every thief has an excuse. No_Ax_to_Grind   | 05/23/06
Just the reality of the situation, Microsoft intentionaly makes it easy to DonnieBoy   | 05/23/06
You are rationalizing the pirate again. osreinstall   | 05/23/06
Judgment in voska   | 05/23/06
Gee, you get the same PRISON time No_Ax_to_Grind   | 05/23/06
So why encourage it voska   | 05/24/06
That's because there is larceny in your heart. osreinstall   | 05/23/06
Awww, how sweet, "larceny in the heart".. Spicoli the Cannoli   | 05/23/06
Last time I went into a music store... osreinstall   | 05/23/06
Yeah! Spicoli the Cannoli   | 05/23/06
I do not see how pirating helps everyone. osreinstall   | 05/23/06
Hehehe! Spicoli the Cannoli   | 05/23/06
You petulant child... osreinstall   | 05/23/06
You're both wrong voska   | 05/24/06
You are right that I will focus on it. osreinstall   | 05/24/06
You know what they say about the first step voska   | 05/24/06
No I think you are the Zealot... osreinstall   | 05/24/06
You zealots kill me voska   | 05/24/06
You are full of crap as usual. osreinstall   | 05/24/06
Someone is full of it....... linux_for_me   | 05/24/06
You are. osreinstall   | 05/24/06
No - he really has a point maxo_z   | 05/23/06
Yeah, scantily clad women deserve to be raped too. No_Ax_to_Grind   | 05/23/06
I don't think anyone thinks the deserve voska   | 05/24/06
Here's the actual study - notes on "costs" Dan__   | 05/23/06
Tell me how W-XP run on old 286/386 Machines?............ Can you hear me   | 05/23/06
This study is badly skewed and poorly done Uralbas   | 05/23/06
I love it!!! Shows anyone can spindoctor stories. Stellardyne   | 05/23/06
Odd voska   | 05/23/06
BSA counting OpenOffice Edward Meyers   | 05/23/06
Piracy is rampant Worldwide Uralbas   | 05/23/06
Free software should kill off commercial entities Boot_Agnostic   | 05/24/06
losing money? threegoalman   | 09/11/06

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