Cutting the software piracy rate of 68 percent in Kuwait by 10 percentage points could generate 609 additional jobs and 93.1 percent in economic growth according to a study released today by the Business Software Alliance (BSA).
The independent global research, conducted by International Data Corporation (IDC), also found that reductions in the domestic software piracy rate could jumpstart growth in the information technology (IT) sector. While IDC currently projects the domestic IT sector in Kuwait will grow 65 percent through 2009, a 10-point reduction in software piracy could increase that growth to 92 percent by 2009.
The BSA-commissioned study, available online at http://www.bsa.org/idcstudy, is the only study of its kind, assessing the IT sector’s economic impact in 70 countries worldwide and the benefits that could accrue to countries that reduce software piracy and promote the protection of intellectual property (IP). With 1.1 million businesses worldwide, the IT industry contributes nearly $1.7 trillion a year to global economic prosperity. A 10-percentage point reduction in software piracy could generate $67 billion in new tax revenues worldwide.
Jawad Al Redha, Co-Chairman Middle East, BSA said: “Clearly, the IT sector – and the software industry in particular – is a powerful driver of economic benefits around the world. But the current impact represents a fraction of the potential economic gains which could be felt far beyond the software industry.
More needs to be done to protect the value of intellectual property in terms of education, legislation and enforcement if Kuwait wants to realize the potential benefits the IT industry can bring.”
IDC finds the local the emerging IT sector in Kuwait is currently estimated at $430 million and employs almost 5000 people. The study finds that a 10 percentage point reduction in Kuwait’s software piracy rate between 2006 and 2009 could result in:
• Projected growth in the local IT sector increasing from 65 % to 92 % by 2009 to create a $713 million industry
• An additional 609 high paying IT jobs
• An additional $349 million in contributions to Kuwait’s GDP
In addition to outlining the economic benefits that can be realized through increased protection for intellectual property and a reduction in software piracy, the study suggests that countries that wish to enjoy the economic benefits take the following five steps:
• Update national copyright laws to implement World Intellectual Property Organization (WIPO) obligations;
• Create strong enforcement mechanisms, as required by the World Trade Organization, including tough anti-piracy laws;
• Dedicate government resources to the problem, including national IP enforcement units, cross-border cooperation, and more training for law enforcement;
• Improve public education and awareness; and
• Lead by example by requiring public sector to use only legitimate software.
John Gantz, Chief Research Officer at IDC commented: “With this report, we are able to further quantify the positive benefits that countries across the world can experience as a result of stronger intellectual property protection and greater education and awareness. It provides the world with a comprehensive snapshot of what we have known all along: reducing software piracy delivers real results.”
Beth Scott, Vice President, EMEA for BSA concluded: “Software has transformed the productivity and competitiveness of every company in every market sector around the world, and made the IT industry a key engine for economic growth. This study shows that even a modest and achievable 10-point reduction in software piracy could deliver enormous benefits to local economies. With decisive and determined efforts to reduce software piracy, the IT sector’s growth in Kuwait can not only continue, but accelerate.”
