Nearly one in every two software products installed on computers in the Republic are illegal copies, a new industry survey shows.

Software piracy in Ireland cost software firms $71 million in 2003 in lost revenues and $9.8 billion throughout the whole of Europe.

The survey commissioned by the Business Software Alliance (BSA) shows 41 per cent of all Irish software is illegal, compared to an average rate of 37 per cent across the European Union.

Last year the group reported a piracy rate of 42 per cent for Ireland, although it has since changed its survey methodology.

"Unfortunately, this demonstrates that Ireland is failing to capitalise on the benefits that even a 10 per cent reduction in software piracy could bring by 2006 - including over 2,400 new jobs and in excess of €236 million in tax revenues," said Mr Julian McMenamin, BSA chairman.

Nine EU countries have a lower piracy rate than Ireland - Austria, Belgium, Czech Republic, Denmark, Finland, Germany, Netherlands, Sweden and Britain.