Middle East and Africa region lead global drop in software piracy

Published June 3rd, 2003 - 02:00 GMT
Al Bawaba
Al Bawaba

Piracy rates for commercial software in the Middle East and Africa region dropped from 80 percent in 1994 to 49 percent 2002, making it the most improved region in the world with a 31-point reduction in piracy, according to the Business Software Alliance's (BSA) eighth annual survey on global software piracy.  

 

The global piracy rate has decreased 10 points over the last eight years, supported by piracy declines in all regions of the world. In the Middle East region, piracy rate fell from 84 percent in 1994 to 50 percent in 2002, a decrease of 34 points supported by improving piracy rates in all countries. Most improved of all countries is the United Arab Emirates (UAE) with a 50-point drop, from 86 percent in 1994 to 36 percent in 2002.  

 

In Africa, the piracy rate declined 29 points, from 77 percent in 1994 to 48 percent in 2002. South Africa dropped 30 points, from 64 percent in 1994 to 34 percent in 2002, and Egypt dropped 32 points, from 84 percent in 1994 to 52 percent in 2002, making it the most improved country in Africa.  

 

Intensified education efforts are critical to shrinking the piracy problem further, BSA said.  

BSA, the Washington, DC-based international association representing the world's leading software publishers, announced that the global software piracy rate declined to 39 percent in 2002, below its 1994 all-time high of 49 percent. 

 

Worldwide, every country except Zimbabwe has reduced 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.  

 

"It is welcoming news to learn that the worldwide software piracy problem has improved significantly since the release of the first study," said Robert Holleyman, president and CEO of BSA. "We attribute this trend to the industry's success in implementing educational programs, working with governments to strengthen copyright laws and emphasizing good software asset management businesses practices that contribute to a safe and legal digital world.” 

 

"However, it's critical to recognize that the industry is facing a spiraling Internet piracy problem. In the future, if the industry is to continue its success in reducing the problem further, then clearly, more robust education and advocacy initiatives will be required."  

 

The independent study utilizes a methodology to determine the worldwide piracy rates of business software applications, the associated dollar losses and trends in 85 countries. Worldwide dollar losses due to piracy increased from $10.97 billion in 2001 to $13.08 billion in 2002, a 19 percent rise that can be attributed to generally higher software prices, despite the continued downturn, smaller software shipments and slightly lower piracy rates.  

 

"The 2002 world piracy rate marks the first decline of the piracy rate since an all-time low of 36 percent was set in 1999," said Holleyman. "Although we've made significant progress over the years to reduce the piracy rate, no level of piracy is acceptable. BSA is committed to continue working with governments, organizations and law enforcement agencies worldwide to raise awareness and keep piracy on a downward trend," he said.  

 

Second only to the Middle East/Africa region in improvement, the Latin America regional piracy rate declined 23 points between 1994 and 2002. Guatemala had the largest drop, 33 points, from 94 percent in 1994 to 61 percent in 2002. El Salvador decreased its piracy rate 29 points, from 97 percent in 1994 to 68 percent in 2002.  

 

The piracy rates in Costa Rica and the Dominican Republic each decreased 28 points; both countries decreased from 89 percent in 1994 to 61 percent in 2002. Brazil and Mexico, the two largest countries in Latin America decreased 22 and 23 points, respectively. Brazil dropped from 77 percent in 1994 to 55 percent in 2002. Mexico fell from 78 percent in 1994 to 55 percent in 2002.  

 

The piracy rate of Western Europe decreased 17 points, from 52 percent to 35 percent, the third best of all the regions. Ireland improved the most, decreasing from 74 percent in 1994 to 42 percent in 2002. Spain followed with a 30-point improvement, dropping from 77 percent to 47 percent. Finland and the Netherlands each reduced their rates by 28 points.  

 

Switzerland had the lowest piracy rate in Western Europe in 1994, and after decreasing six points to 32 percent in 2002, it is still below the regional average of 35 percent. However, it is well above Denmark, which had a piracy rate of 24 percent in 2002.  

 

The piracy rate in Eastern Europe dropped 14 points, from 85 percent in 1994 to 71 percent in 2002, and is the fourth most improved region. Slovenia improved the most, reducing its piracy rate by 37 points, from 96 percent to 59 percent. Hungary followed with a 31-point drop, from 76 percent in 1994 to 45 percent in 2002. The piracy rate in Russia dropped only six points, from 95 percent in 1994 to 89 percent in 2002. The Ukraine also only dropped six points, from 95 percent to 89 percent.  

 

The piracy rate in the Asia/Pacific region improved 13 points, from 68 percent in 1994 to 55 percent in 2002. Japan had the largest drop in piracy in the region, decreasing from 66 percent in 1994 to 35 percent in 2002. Taiwan followed with a 29-point drop, from 72 percent in 1994 to 43 percent in 2002. The Philippines dropped 26 points from 94 percent in 1994 to 68 percent in 2002. Korea dropped 25 points, from 75 percent in 1994 to 50 percent in 2002.  

 

North America has the lowest piracy rate in the world, and it declined from 32 percent in 1994 to 24 percent in 2002. At 23 percent in 2002, the US piracy rate decreased eight points from 31 percent in 1994, and is still the lowest of all the countries worldwide. The piracy rate in Canada was 39 percent, a drop of seven points from 46 percent in 1994.  

 

BSA commissioned International Planning and Research Corporation (IPR), an independent research firm to conduct the survey. The study evaluated sales data and market information for six major world regions and examined 26 business software applications.  

 

The study is based 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.  

 

The Business Software Alliance is the foremost organization dedicated to promoting a safe and legal digital world. BSA is the voice of the world's commercial software industry before governments and in the international marketplace. Its members represent the fastest growing industry in the world. BSA educates consumers on software management and copyright protection, cyber security, trade, e-commerce and other Internet-related issues. — (menareport.com) 

© 2003 Mena Report (www.menareport.com)