As one of the most technologically advanced regions of the world, the software market in Asia will continue to grow, with increases predicted at 21.5 percent through 1996. However, software theft continues to flourish in the region, threatening the ongoing success of the industry.
1994 losses due to software piracy in 14 Asian countries exceeds $4.3 billion, 29 percent of the $15.2 billion experienced worldwide, with an average piracy rate of 68 percent. Losses in 1993 in 12 Asian countries surpassed $3.9 billion. And, the average piracy rate of the 12 countries surveyed the last two years decreased from 76 percent in 1993 to 67 percent in 1994.
Governments' cooperation and commitment to strict intellectual property protection is critical in the fight against software piracy. In Taiwan, for example, government intervention has had a positive effect on piracy, with levels falling 12 points, from 84 percent in 1993 to 72 percent in 1994. Growth in the legitimate software market in Hong Kong also resulted, with the piracy rate falling four points, down to 62 percent in 1994.
While the piracy rate in Japan has, in fact, decreased from 80 percent in 1993 to 67 percent in 1994, procedural short comings in Japan's legal system continue to limit the ability of software publishers to pursue enforcement actions. And, a new copyright law passed in Thailand in March may result in positive results in that country, where the piracy rate has remained unacceptably high -- 98 to 99 percent-for the past several years.
In other countries, the rate of software theft has either remained the same or increased, with levels as high as 99 percent. Korea, India, Indonesia, and the People's Republic of China remain serious problem areas for software publishers in Asia. In addition, the production of counterfeit products is becoming more prevalent in both the P.R.C. and Indonesia.
BSA has identified several core countries in regions around the world, monitoring dollar losses and levels of piracy over the past several years. For these core countries-eight in Africa and the Middle East, 11 in Latin America, 12 in Asia, and 19 in Europe-a general decrease in the average piracy rate is evident in most of the regions. 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 two years, from 76 percent in 1993 to 67 percent in 1994. The average piracy in the 11 core countries In Latin America dropped to 78 percent in 1994 from 90 percent in 1993. And in Europe, the average piracy rate in 19 core countries has fallen from 61 percent in 993 to 55 percent in 1994. (Adding the average piracy estimates for the 23 new countries surveyed in 1994 resulting in higher average piracy rates in some regions and lower levels in others, compared to the average rate in the core countries.)
BSA and its members will continue efforts around the globe to strengthen copyright laws and enforcement of these laws to eradicate software piracy. BSA promotes the continued growth of the software industry through its international program in the U.S. and more than 60 other countries throughout Asia, Latin America, Europe, and North America. It represents the leading publishers of PC software including Autodesk, Bentley Systems, Intergraph, Lotus Development, Microsoft, Novell and the WordPerfect Applications Group, and The Santa Cruz Operation. Since its inception in 1988, BSA has filed nearly 600 lawsuits worldwide against suspected software copyright infringers.
In 1989, BSA initiated its worldwide anti-piracy campaign in Europe with the filing of the software industry's first enforcement action for the illegal use of software in Italy. Since then, BSA's anti-piracy program in Europe has expanded to more than 20 countries throughout the region.
Despite success stories of stronger copyright laws being enacted and successful prosecutions against software theft, piracy remains a major problem throughout the region. The average piracy rate in 25 European countries was estimated at 58 percent in 1994, with dollar losses exceeding $6 billion. This represents the largest share of the $15.2 billion lost globally. Turkey, Romania, Commonwealth of Independent States, and the Russian Federation top the list of regional piracy levels, exceeding 90 percent. Greece, the Czech Republic, Hungary, and Yugoslavia have piracy levels above 80 percent.
Countries with the lowest piracy levels include the U.K. and Finland at 43 percent and Switzerland at 35 percent. According to BSA's survey, while the major European software markets in German, France, and the U.K. all reduced their software piracy levels last year, the true cost of piracy in these three countries actually rose 10 percent, from $2.9 billion in 1993 to some $3.2 billion in 1994, due to the growth in the size of the total market. These three countries accounted for almost half the European revenues lost through software piracy last year.
While the results of this year's survey indicate process in reducing piracy levels across the region, serious problems still remain. Over the past two years, BSA estimates show a decrease in the average piracy level in 19 core countries in Europe from 61 percent in 1993 to 55 percent in 1994. One of the key factors in the progress made in 1994 was the increased support and cooperation by governments and police agencies. The laws prohibiting unlicensed copying are clear, and the industry has spent millions of dollars on education. While education efforts will continue, more emphasis is needed on tough enforcement.
BSA has identified several core countries in regions around the world, monitoring dollar losses and levels of piracy over the past several years. For these core countries -- 11 in Latin America, eight in Africa and the Middle East, 12 in Asia, and 19 in Europe-a general decrease in the average piracy rate is evident in most of the reasons. In Africa and the Middle East, however, the piracy level jumped three points, 76 percent 9n 1993 to 79 percent in 1994 (for eight core countries).
The average piracy rate in the 11 core countries in Latin America dropped to 78 percent in 1994 from 80 percent in 1993. Twelve core countries in Asia showed the largest decrease in the level of piracy over two years, from 76 percent in 1993 to 67 percent in 1994. And in Europe, the average piracy rate in 19 core countries has fallen 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.)
BSA and its members will continue efforts around the globe to strengthen copyright laws and enforcement of these laws to eradicate software piracy. BSA promotes the continued growth of the software industry through its international programs in the U.S. and more than 60 other countries throughout Europe, Latin America, North America, and Asia. It represents the leading publishers of PC software including Autodesk, Bentley Systems, Intergraph, Lotus Development, Microsoft, Novell and the WordPerfect Applications Group, and The Santa Cruz Operation. Since its inception in 1988, BSA has filed nearly 600 lawsuits worldwide against suspected software copyright infringers.
As the second fastest growing market for package software, the software industry in Latin America continues to flourish, with 18 percent annual increases predicted over the next four years, according to the Department of Commerce. Coupled with this growth, unfortunately, is the ever present threat of software theft, with the average piracy rate in 16 countries estimated at 78 percent in 1994.
1994 dollars losses for the 16 countries in the region due to software theft exceed $1.3 billion, representing nine percent of the more than $15.2 billion in global losses. Dollar losses for the 11 countries exceeded $821 million in 1993. In those 11 countries, the piracy rate decreases from 80 percent in 1993 to 78 percent in 1994.
Government cooperation to improve copyright laws and enhance enforcement have resulted in lower piracy rates in some Latin American countries. In Venezuela, for example, the piracy rate dropped 14 points over three years, from 85 percent in 1992 to 71 percent in 1994. And in Peru, the software piracy rate dropped to 90 percent in 1994, from 98 percent in 1993.
BSA has identified several core countries in regions around the globe, monitoring dollar losses and levels of piracy over the past several years. For these core countries-eight in Africa and the Middle East, 11 in Latin America, 12 in Asia, and 19 in Europe-a general decrease in the average piracy rate is evident in most of the regions. 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).
The average piracy rate in the 11 core countries in Latin America dropped to 78 percent in 1994 from 80 percent in 1993. Twelve core countries in Asia showed the largest decease in the level of piracy over two years, from 76 percent in 1993 to 67 percent in 1994. And in Europe, the average piracy rate in 19 core countries has fallen from 61 percent in 1993 to 55 percent in 1994. (Adding the average piracy estimates for 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.)
BSA and its members will continue efforts around the globe to strengthen copyright laws and enforcement of these laws to eradicate software piracy. BSA promotes the continued growth of the software industry through its international programs in the U.S. and more than 60 other countries throughout Latin America, Europe, North America, and Asia. It represents the leading publishers of PC software including Autodesk, Bentley Systems, Intergraph, Lotus Development, Microsoft, Novell and the WordPerfect Applications Group, and The Santa Cruz Operation. Since its inception in 1988, BSA has filed nearly 600 lawsuits worldwide against suspected software copyright infringers.
Twenty countries in the Middle East and Africa accounted for the highest average software piracy rate in 1994 -- 81.6 percent. Piracy rates at or above 90 percent were experienced by 15 of the 20 countries, demonstrating that ineffective intellectual property protection threatens the investment in and growth of an indigenous software industry in this region. Dollar losses in the region exceed $392 million, representing two percent of the $15.2 billion lost globally.
While other regions in the world showed slight decreases in the average piracy rate, levels increased in countries in the Middle East and Africa. The average piracy rate in eight countries in this region surveyed over the past year show a rise in the piracy rate from 76 percent in 1993 to 79 percent in 1994.
Government cooperation and support for strong copyright laws and strict enforcement of those laws is critical in the fight against software theft. While some countries have, in fact, experienced a decrease in piracy theft in 1994, piracy remains indemic throughout the region. Israel has the lowest piracy rate in the region, an unacceptable 74 percent, which translates to one legal program for every three illegal copies. In the United Arab Emirates, piracy levels dropped from 99 percent in 1993 to 93 percent in 1994. And, software theft in Egypt decreased eight points, to 85 percent in 1994.
BSA has identified several core countries in regions around the world, monitoring dollar losses and levels of piracy over the past several years. For these core countries-eight in Africa and the Middle East, 11 in Latin America, 12 in Asia, and 19 in Europe-a general decrease in the average piracy rate I evident in most of the regions. In Africa and Middle East, however, the piracy level jumped three points, from 76 percent in 1993 to 79 percent in 1994 ( for eight core countries).
The average piracy rate in the 11 core countries in Latin America dropped to 78 percent in 1994 from 80 percent in 1993. Twelve core countries in Asia showed the largest decease in the level of piracy over two years, from 76 percent in 1993 to 67 percent in 1994. And in Europe, the average piracy rate in 19 core countries has fallen from 61 percent in 1993 to 55 percent in 1994. (Adding the average piracy estimates for 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.)
BSA and its members will continue efforts around the globe to strengthen copyright laws and enforcement of these laws to eradicate software piracy. BSA promotes the continued growth of the software industry through its international programs in the U.S. and more than 60 other countries throughout Asia, Latin America, Europe, and North America. It represents the leading publishers of PC software including Autodesk, Bentley Systems, Intergraph, Lotus Development, Microsoft, Novell and the WordPerfect Applications Group, and The Santa Cruz Operation. Since its inception in 1988, BSA has filed nearly 600 lawsuits worldwide against suspected software copyright infringers.