New study reveals piracy rates in Asia-Pacific region on the rise; RP software piracy up by 5% to 68%.(Infotech)

The average piracy rate for commercial software across Asia Pacific is at its highest level since 1996 and dollar losses in the region in 2002 were at an all-time high of US$5.5 billion, according to the Business Software Alliances (BSA) Eighth Annual Survey on global software piracy (www.bsa.org/globalstudy/). Among the countries in Asia that have seen their piracy rates increase in 2002 is the Philippines, with a piracy rate of 68 percent, up from 63 percent in 2001.

BSA, the Washington, DC-based international association representing the worlds leading software publishers, today announced that the average software piracy rate in Asia Pacific rose for the third year in a row and stood at 55 percent in 2002. In 1994, Asia Pacifics piracy level was 68 percent and by 1999 the rate had dropped to 47 percent. The upturn started in 2000. This trend is attributable in part to the strong growth in demand for software in China and the high piracy rate for software in the market.

BSA is very concerned that the average software piracy rate in Asia Pacific is rising, in contrast to every other region except for Eastern Europe, said Jeffrey Hardee, BSA Vice President and Regional Director, Asia Pacific. The enormous losses in the region due to software piracy are particularly troubling. If Asia Pacific countries are to realize the economic benefits software generates in an economy, software piracy levels must be brought down.

A worldwide study conducted by IDC, an independent and well-known research firm, and released in April, measured the economic benefits derived from lowering the rate of software piracy rate and the results were staggering. The IDC study showed that just a 10-point drop in piracy over four years in Asia Pacific would add 1.1 million new jobs, US$170 billion in additional economic growth and more than US$15 billion in tax revenues. Asia Pacifics IT sector could double in size in just four years growing from US$175 billion to US$330 billion, added Hardee.

The IDC study sends a strong message to governments about the benefits of fighting software piracy. Indeed, some economies in the region have strongly benefited from reductions in the software piracy levels. These include Japan, Korea and Taiwan.

BSA is committed to working with governments to eradicate software piracy by taking a three-prong approach, which includes public policy, education and enforcement.

The Philippines is one country that has realized the benefit of reducing software piracy, said Ronald Chua, Chairman of BSA Philippines Committee, 2003. Although the piracy rate has gone up by five percent over the previous year, long-term figures show that the rate has decreased considerably. In 1994, RPs piracy level was 94 percent. Since then, the country has made good progress and has succeeded in reducing piracy rates to 68 percent in 2002. In fact, according to a recent IDC study, the Philippines IT sector contributed R55 billion to the economy, created 27,169 jobs, and contributed R3.9 billion in tax revenues to the government in 2002.

It is also clear that the Philippine government recognizes the importance of protecting intellectual property (IP) in the form of reducing software piracy. The IDC study had also indicated that cutting piracy rate in the Philippines by 10 points over a four-year period between 2002 and 2006 could add R19.3 billion to its economy, create 2,000 high-wage jobs, and generate R1 billion in new tax revenues to help the government fund public benefits and services, added Chua.

We commend the efforts of the government and private organizations in bringing down software piracy. However, the increase in piracy rate last year clearly shows that software piracy remains a serious problem in the Philippines as retail revenue losses to the industry rose to R2 billion last year due to piracy. We urge the corporate sector to be active in joining our fight against piracy, Chua said.

The Eighth Annual BSA Global Software Piracy Study utilizes a methodology to determine the worldwide piracy rates of business software applications, the associated dollar losses and trends in 85 countries.

The global piracy rate for commercial software has decreased 10 points over the last eight years. Worldwide, nearly all countries had succeeded in reducing its rate of piracy since 1994, the year in which the study was first commissioned. The US piracy rate hit an all-time low of 23 percent, currently the lowest piracy rate in the world.