Reduce software piracy to generate billions in India: Study

by CXOtoday Staff    Oct 05, 2010

BSAIDCAccording to the new study titled ‘The Economic Benefits of Reducing Software Piracy’ from Business Software Alliance (BSA) and the market research firm IDC, reducing the 65 percent software piracy rate in India by 10 percentage points over four years would create over 59,728 high-tech jobs, $4.6 billion in new economic activity, and close to $512 million in new taxes by 2013, with 76 percent of those benefits expected to remain in the local economy.

graph1The study is based on IDC’s piracy impact model, which incorporates market research on IT spending, loss of revenue from software piracy around the world by software publishers, IT service firms and distributors etc.

“This study clearly shows that aggressively fighting software piracy today means greater economic benefits tomorrow for the region’s economy, not just the software industry,” commented Roland Chan, Senior Director, Marketing, Asia, Pacific, BSA.

The study said that if India were to reduce piracy by 10 points over the next two years instead of four, it would boost the economic activity and tax gains by a further 32 percent. India would then produce $6,132 million in new economic activity by 2013 instead of $4,662 million and generate $676 million in new tax revenues instead of $512 million.

“In terms of direct threats, it impacts users, who face a serious threat to their PC security, besides financial and legal liability, and ensuing mitigating costs and the software manufacturers who lose their valuable and multi-billion R&D investments every year,” remarked Keshav S Dhakad, Chair of the India BSA Committee.

The study covered 42 countries but in Asia Pacific, it looked at 13 economies. The 13 Asia Pacific economies surveyed represent 98 percent of the total packaged software market in the region.

“The study has found that 76 percent of the added GDP in the Asia-Pacific from a four-year, 10-point drop in piracy would remain in the region,” opined Victor Lim, Vice President, Asia/Pacific Consulting Operations, IDC.

BSA recommends that promoting education about the value of intellectual property (IP) and the business practice of managing and optimizing software assets through software asset management (SAM) can effectively reduce software theft around the world. Besides, implementing the World Intellectual Property Organization’s Copyright Treaty is also a recommendation given by BSA.