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Australian software piracy rate falls six percent

Announcement posted by Business Software Association of Australia (BSAA) 11 Jun 2002

Software piracy in Australia has decreased from 33 percent in 2000 to 27 percent in 2001, according to the Business Software Alliances (BSA) seventh annual independent benchmark survey on global software piracy. The decrease in Australia goes against the global trend, which saw software piracy growing from 37 percent in 2000 to 40 percent in 2001.

According to Jim Macnamara, Chairman of the Business Software Association of Australia (BSAA), the reduction in software piracy rates in Australia trend is very positive, and is a long overdue correction which brings Australia more in line with, but still behind, nations such as the UK, USA and New Zealand

Australia is a very technology savvy and IT literate country with high PC and internet penetration rates. The reduced rate in software piracy reflects recognition of the value that IT and software play in our economy and its a very welcome result for Australia. However Australia is still experiencing significant losses as a result of software piracy and the country still needs to provide greater protection for IP to encourage innovation and grow our knowledge economy, he said.

The BSAA is also concerned that the increased use of the Internet and broadband technologies could send piracy rates up. Internet piracy has the potential to make all other forms of piracy seem obsolete, yet Australia still lacks any substantive criminal and enforcement framework to tackle these issues, Mr Macnamara said.

Mr Macnamara said the BSAA will continue to lobby Government to put in place the changes recommended by its own working party in 2001 in terms of protecting intellectual property.

Global Trends
The independent study highlights the serious impact of unlicensed software use on economies in 85 countries. The worldwide dollar losses due to piracy dropped nearly one billion dollars from US$11.75 billion in 2000 to US$10.97 billion in 2001. The decline in dollar losses can be attributed to a strong U.S. dollar, decline in software prices making the benefits of original software more compelling against the risks of software piracy and the effects of a worldwide economic slowdown.

Several countries in the Asia/Pacific region experienced piracy rate increases in 2001 and the regional dollar losses for the region increased from US$4.1 billion in 2000 to over US$4.7 billion in 2001 accounting for almost half of the revenue losses worldwide.

At 67%, Eastern Europe region had the highest piracy rate of all the regions, with an increase in dollar losses from US$404 million in 2000 to more than US$434 million in 2001.

At 37%, Western Europe continued to be the region with the second lowest piracy rate, but it experienced the second highest dollar losses, totalling nearly US$2.7 billion, accounting for 24% of the total global losses due to software piracy.

For the third consecutive year, Latin America continues to see a decline in its piracy rate, now at 57%. Software piracy in Latin America cost nearly US$865 million

Middle East & Africa experienced a decrease in its piracy rate from 55% in 2000 to 52% in 2001. Software piracy cost this region nearly US$284 million

North America: North America continued to be the region with the lowest piracy rate at 26%, up one percentage point from 25% in 2000. Over the past seven years, the regions piracy rate has declined from 32% to 26%. Yet, North America accounted for the third highest piracy dollar losses, totalling US$1.9 billion.

About the Study
BSA, an industry watchdog group which represents the worlds leading software manufacturers, commissioned International Planning and Research Corporation (IPR), an independent research firm to conduct the survey on its behalf. The study evaluated sales data and market information for six major world regions and examined 26 business software applications. The study isbased on the reconciliation of two sets of data, the demand for new software applications and the legal supply of new software applications. The data are derived from two primary sources: software shipment data supplied by BSA member companies, and market data provided by MetaFacts, Inc., a technology market research firm.


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The Business Software Association of Australia (BSAA) is affiliated with the Business Software Alliance (BSA), which operates globally in 65 countries. BSAA members include Adobe, Autodesk, Macromedia, Microsoft and Symantec.

The Business Software Alliance (www.bsaa.org) is the foremost organization dedicated to promoting a safe and legal online world. The BSA is the voice of the world's software and Internet industry before governments and with consumers in the international marketplace. Its members represent the fastest growing industry in the world. BSA educates computer users on software copyrights and cyber security; advocates public policy that fosters innovation and expands trade opportunities; and fights software piracy. BSA worldwide members include Adobe, Apple Computer, Autodesk, Bentley Systems, Borland, CNC Software/Mastercam, Macromedia, Microsoft, Symantec, and Unigraphics Solutions (EDS).