Asian Software piracy reduction worth US$40 billion: study

Alex Zaharov-Reutt
Monday, 18 February 2008 13:51

Business IT - Technology

A new study by anti-piracy group, the BSA (Business Software Alliance) suggests over US$40 billion in economic growth could be achieved over the next four years with a 10% reduction in piracy, generating 435,000 new and jobs over US$5 billion in new tax revenues. Will the buccaneering, bootlegging bandits of Asian software piracy ever stop selling to local businesses, and will those local businesses ever comply with anti-piracy legislation?

The BSA, or Business Software Alliance, has released a new study showing the huge economic, tax and employment gains to be made in the Asian region if piracy was reduced by only 10% over the next four years.

If Australian piracy was reduced by 10% over the same timeframe, the BSA suggest that an additional 3,900 jobs could be created, AUD $2.1 billion in additional economic growth could be achieved, and Federal, regional and local governments could see their tax receipts swell by an astounding AUD $485 million.

On an Asia-wide level, the totals grow even higher – 435,000 new jobs, US$40 billion in economic growth and an eye watering US$5 billion in tax revenues.

While this probably shows that we are all being taxed far too highly, if nothing else, the BSA says the news gets better for local vendors, who stand to see an additional AUD $1.55 billion in revenue over that four year period.

That’s because, as the BSA study points out, “for every $1 spent on legitimate packaged software, an additional $1.25 is spent on related services from local vendors such as installing the software, training personnel and providing maintenance services” – essential services that many companies need, while also demonstrating that the true cost of software for companies isn’t just the cost of the software alone.

Australians love their technology and software, with 2007 figures showing we spent almost AUD $25.4 billion on “information technology (IT) – computers, peripherals, network equipment, packaged software and IT services”.

That spending accounted for 3.0% of gross domestic product (GDP), supported more than 23,500 IT companies with nearly 178,000 IT industry employees, and helped generate AUD $11.6 billion in IT-related taxes – all from a country of only around 20 million people.

Sheryle Moon, CEO of the Australian Information Industry Assocation (AIIA) commented that: “The growth of the Australian ICT industry is reliant on the ability of local companies to reap the benefits of their IP in the globalised marketplace. It is important that such innovation be protected at home and abroad from piracy. Protection would result in increased export revenue for Australia which is imperative to address the ICT trade deficit.”

So, what about all the piracy that happens in ‘high piracy loss’ countries such as Russia, China and India? Please read onto page 2.