Software piracy costing $106m

ALTHOUGH the use of illegal software in Ireland fell by two percentage points last year to 34 per cent, financial losses to the…

ALTHOUGH the use of illegal software in Ireland fell by two percentage points last year to 34 per cent, financial losses to the software sector increased to an estimated $106 million.

The worldwide software piracy rate in the 108 countries covered by the annual study of the BSA, the Business Software Alliance, rose three points to 38 per cent. The industry body, whose members include Microsoft, Adobe and Apple, attributes the growth in piracy to increased PC ownership in markets where illegal software is more widespread.

The use of unlicensed software has been declining steadily in Ireland in recent years. Aileen Eglington, spokeswoman for the BSA Ireland committee, said: "This report shows we are making progress in Ireland in the battle against software piracy." Reducing the rate further would have benefits for consumers, the software industry, small businesses and society at large, she added.

Globally, the use of illegal software is on the decline. Of the 108 countries studied, piracy dropped in 67 and increased in just eight.

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Armenia, Bangladesh, Azerbaijan, Moldova, Zimbabwe and Sri Lanka are the worst offenders and all have piracy rates of 90 per cent or more. The US has the lowest rate at just 20 per cent followed by Luxembourg (21 per cent), New Zealand (22 per cent) and Japan (23 per cent). The study was carried out on behalf of the BSA by research firm IDC.

Ireland's 34 per cent rate compares to an average rate in the EU of 35 per cent. In Europe, the Middle East and Africa, the main regions to which software produced in Ireland is exported, piracy is running at 44 per cent, with losses of $20.4 billion to the industry.