http://www.microsoft.com/Piracy/1994ww.htm (PC Press Internet CD, 03/1996)BUSINESS SOFTWARE ALLIANCE
ANNUAL SURVEY
APRIL 1995
The computer software industry is one of the great business success stories of recent history, with healthy increases in both hardware and software sales around the world according to the U.S. Department of Commerce. Continued growth is predicted across the globe, however, software piracy threatens the industry's economic future. Software piracy-the illegal copying of software-stifles innovation and destroys the financial incentives for the creation of new programs and applications.
The Business Software Alliance promotes the continued growth of the software industry through its international programs designed to eradicate software piracy. On behalf of the personal computer software industry, BSA conducts enforcement, education, and public policy activities in more than 60 countries, including the U.S. BSA works with governments around the world to provide guidance for strengthening copyright laws and increasing enforcement.
In addition, BSA operates 35 hotlines around the world for callers seeking information about piracy or to report suspected incidents of software theft. Since its inception in 1988, BSA has filed nearly 600 lawsuits worldwide against suspected software copyright infringers.
A record number of countries were surveyed this year, resulting in piracy estimated for 77 countries, totaling more than $15.2 billion in losses to the software publishing and distribution industries (Chart and Figure 1). Dollar loss estimates due to software piracy in the 54 countries surveyed last year show an increase of $2.1 billion, from $12.8 billion in 1993 to $14.9 billion in 1994. An additional 23 countries surveyed this year brings the 1994 worldwide total to $15.2 billion. Losses in these 23 countries increased the worldwide total by $335 million, with about one-third of the additional losses stemming from software theft in Hungary. These losses impact all levels of the computer industry, including software developers, distributors and resellers. On a local level, this translates to lost jobs, company failures, and decreased tax revenues.
Piracy losses in 25 European countries total more than $6 billion, with the average piracy rate at 58 percent. Europe accounts for the largest share of the global total-- 39 percent. Total losses due to software piracy in 14 Asian countries exceeded $4.3 billion, 29 percent of the global total. The average piracy rate in this region is estimated at 68 percent.
In Latin America, 16 countries were surveyed, and dollar losses due to piracy exceeded $1.3 billion (nine percent of the global total), with a regional piracy rate of 78 percent. And, 20 countries in the Middle East and Africa accounting for the highest average software piracy rate in 1944 -- 81 percent. Piracy rates at or above 90 percent were experienced by 15 of the 20 countries. Dollar losses in this region exceeded $392 million, two percent of the global total.
While the United States and Switzerland shared the lowest piracy rate in 1994 -- 35 percent-U.S. dollar losses were the highest, estimated at more than $2.8 billion. And, three countries accounted for 43 percent of the global total-the U.S., Japan with more than $2 billion in losses, and Germany with more than $1.8 billion in losses (Figure 2).
BSA has identified several core countries in each region, monitoring dollars losses and levels of piracy over the past several years. For these core countries-eight in Africa and the Middle East, 12 in Asia, 11 in Latin America, and 19 in Europe-a general decrease in the average piracy rate is evident in most of the regions (Figure 3). In Africa and the Middle East, however, the piracy level jumped three points, from 76 percent in 1993 to 79 percent in 1994 (for eight core countries).
Twelve core countries in Asia showed the largest decrease in the level of piracy over the past year, from 76 percent in 1993 to 67 percent in 1994. The average piracy rate in the 11 core countries in Latin America dropped to 78 percent in 1994 from 80 percent in 1993. And in Europe, the average piracy rate in 19 core countries fell from 61 percent in 1993 to 55 percent in 1994. (Adding the average piracy estimates from the 23 new countries surveyed in 1994 resulted in higher average piracy rates in some regions and lower levels in others, compared to the average rate in the core countries.)
Each year, BSA calculates estimated dollar losses as a result of software piracy and the percentage of legitimate software usage in specific countries. These estimate are based on software and hardware shipments in a particular country. Retail prices of software are used, reflecting losses to the entire software industry-publishers and the distribution channel. Hardware and software shipments are obtained from numerous commercially-available resources. In determining the losses to software publishers and the distribution channel, BSA uses the following equation:
For additional information about the BSA's worldwide programs, contact its Washington office:
2001 L Street, N.W.
Suite 400
Washington, DC 20036
202-872-5500
202-872-5501 (fax)
COUNTRY $ LOSSES PIRACY RATE Argentina $208,220,000 80% Australia $127,543,294 37% Austria $66,830,624 $48% Bahrain $6,940,000 96% Belgium $77,304,687 46% Bolivia $12,460,806 95% Brazil $550,936,140 77% Bulgaria $30,900,000 95% Canada $254,533,200 58% Chile $70,414,496 84% Colombia $90,765,000 81% Commonwealth of $10,413,000 97% Independent States Cyprus $3,847,500 91% Czech Republic $107,550,000 83% Denmark $89,818,500 46% Ecuador $7,013,200 98% Egypt $38,910,344 85% El Salvador $13,142,700 97% Finland $48,098,063 43% France $771,460,734 57% Germany $1,874,741,352 50% Greece $79,231,445 80% Guatemala $8,520,000 94% Honduras $4,652,592 89% Hong Kong $132,688,750 62% Hungary $101,500,000 85% India $127,527,600 82% Indonesia $118,320,000 99% Iran $9,798,894 97% Ireland $44,525,803 82% Israel $42,329,763 74% Italy $404,382,943 58% Japan $2,075,809,729 67% Jordan $3,382,500 96% Kenya $647,600 90% y COUNTRY $ LOSSES PIRACY RATE Korea $545,926,907 78% Kuwait $14,904,00 99% Lebanon $1,607,526 95% Malaysia $96,207,600 89% Malta $2,916,600 90% Mauritius $2,397,600 93% Mexico $200,213,302 78% Morocco $23,200,000 81% Netherlands $204,938,610 58% New Zealand $105,436,670 55% Nicaragua $6,664,500 99% Nigeria $8,820,00 85% Norway $80,518,875 52% Oman $9,566,100 98% Pakistan $8,600,000 96% Panama $4,410,000 78% Paraguay $16,110,080 96% People's Republic of $526,740,300 98% China Peru $18,898,200 90% Philippines $43,800,000 97% Poland $201,000,000 91% Portugal $54,805,152 66% Qatar $8,014,140 95% Reunion $3,492,720 90% Romania $20,937,500 95% Russian Federation $540,564,400 94% Saudi Arabia $101,000,000 90% Singapore $44,752,650 58% Slovenia $5,772,400 92% South Africa $64,102,400 68% Spain $239,529,767 73% Sweden $151,106,006 52% Switzerland $94,491,000 35% Taiwan $231,703,570 72% Thailand $174,232,070 98% Turkey $158,736,097 97% United Kingdom $543,516,297 43% United Arab Emirates $39,019,968 93% United States $2,876,922,400 35%
COUNTRY $ LOSSES PIRACY RATE
Uruguay $18,201,713 90%
Venezuela $104,271,936 71%
Vietnam $292,500 98%
TOTAL: $15,212,700,215
LOSSES WORLDWIDE TOTAL
AFRICA/MIDDLE EAST: $392,697,055 2%
ASIA: $4,350,981,640 29%
EUROPE: $6,002,681,255 39%
LATIN AMERICA: $1,334,894,655 9%
U.S./CANADA: $3,131,455,600 21%