Pirates cost software industry $50 billion in 2008

Washington, DC - A fifth of PC software in the United States is pirated and the worldwide cost of piracy topped $50bn for the first time, says the annual report from IDC and the Business Software Alliance (BSA). Despite US piracy running at just 20%, market size means megabuck losses - over $9 billion in 2008.

The worldwide PC software piracy rate rose for the second year in a row, from 38 percent to 41 percent, because PC shipments grew fastest in high-piracy countries such as China and India, overwhelming progress elsewhere.

While emerging economies account for 45 percent of the global PC hardware market, they account for less than 20 percent of the PC software market. If the emerging economies' PC software share were the same as it is for PC hardware, the software market would grow by $40 billion a year. Lowering global piracy by just one point a year would add $20 billion in stimulus to the IT industry, says the report.

The monetary value of unlicensed software broke the $50 billion level for the first time. Worldwide losses grew by 11 percent to $53.0 billion in non-adjusted dollars, although half of that growth was the result of the falling U.S. dollar. Excluding the effect of exchange rates, losses grew by 5 percent to $50.2 billion. This compares to a legitimate PC software market of $88 billion in 2008, and a personal computer market of $244 billion.

"We are continuing to make progress against PC software piracy in many countries, which helps people working in the U.S.-led global software industry. That's the good news," said BSA President and CEO Robert Holleyman.

"The bad news is that PC software piracy remains so prevalent in the United States and all over the world," he added. "It undermines local IT service firms, gives illegal software users an unfair advantage in business, and spreads security risks. We should not and cannot tolerate a $9 billion hit on the software industry at a time of economic stress."

The lowest-piracy countries are the United States, Japan, New Zealand, and Luxembourg, all near 20 percent. The highest-piracy countries are Armenia, Bangladesh, Georgia, and Zimbabwe, all over 90 percent.

The highest-piracy regions are Central/Eastern Europe (67 percent) and Latin America (65 percent). The lowest regions are North America (21 percent) and the European Union (35 percent).

Source:http://www.tgdaily.com/content/view/42401/140/

Simply astounishing. While I despise Piracy threads, this is an issue that really needs solution. Makes a sad panda face...

WOW thats a lot of money, if I had time to come up with some big clever answer I would but I don't.

thats actually not as large as I was expecting, the software industry is estimated to be $500 Billion strong.

thats actually not as large as I was expecting, the software industry is estimated to be $500 Billion strong.

cobrax75

for software I can see an answer for this with internet activations meaning ip logins,serial key tracking allowing one at a time etc etc

but with movies it cant be stopped sorry people who into go theaters with cameras or even R5's dvd scr being released its cant be stopped

Go back and look at how they got the figures.

X Number of People downloading the game doesn't mean X Number of Lost sales.

It was the same with VHS and how is was going to ruin the film industry, with X$$ lost in the first year. Pssh.

Sad story.

Crap casual fad cash ins cost the industry 100 billion dollars, respect and the gamers sanity. Piracy begins when the game is sent out to be put on discs or when an employee leaks it. Do something about that instead of talking about fancy numbers.

"The lowest-piracy countries are the United States, Japan, New Zealand, and Luxembourg, all near 20 percent. The highest-piracy countries are Armenia, Bangladesh, Georgia, and Zimbabwe, all over 90 percent."

How do you even calculate stuff like this? Do you mean to tell me that if piracy wasn't around they would purchase stuff? Somehow I find that very hard to believe..

"The lowest-piracy countries are the United States, Japan, New Zealand, and Luxembourg, all near 20 percent. The highest-piracy countries are Armenia, Bangladesh, Georgia, and Zimbabwe, all over 90 percent."

How do you even calculate stuff like this? Do you mean to tell me that if piracy wasn't around they would purchase stuff? Somehow I find that very hard to believe..

_Pedro_

"The lowest-piracy countries are the United States, Japan, New Zealand, and Luxembourg, all near 20 percent. The highest-piracy countries are Armenia, Bangladesh, Georgia, and Zimbabwe, all over 90 percent."

How do you even calculate stuff like this? Do you mean to tell me that if piracy wasn't around they would purchase stuff? Somehow I find that very hard to believe..

_Pedro_

Yeah I was wondering how they get these numbers too.

I'm surprised as many people pirate new games as they do though. To be honest I've downloaded, but only games I would never ever manage to find anywhere new OR used like Silent Hill 1 etc.

Either way in those situations you're not doing the game industry any good, as buying a used copy doesn't go to their pockets anyways.

But yeah, these numbers can't be accurate. If a kid has unlimited games in front of him with a sign saying FREE is he gonna take them? Yes. Does it mean he was ever going to buy them in the first place? No. He just took em cause he could.

edit: typo

WOW the porest countrys in the world are the highest. pepeole with no money stealing who ever thout. hmm do I by

$60 game or food. steal $60 game and buy food......... I wonder WHY they Pirates everything

[QUOTE="_Pedro_"]

"The lowest-piracy countries are the United States, Japan, New Zealand, and Luxembourg, all near 20 percent. The highest-piracy countries are Armenia, Bangladesh, Georgia, and Zimbabwe, all over 90 percent."

How do you even calculate stuff like this? Do you mean to tell me that if piracy wasn't around they would purchase stuff? Somehow I find that very hard to believe..

kemar7856

Piracy in Russia has drasticlly fallen after they started giving out serious prison time to those who sold pirated software....like 4 years time, and Russian prisons are no joke.

[QUOTE="kemar7856"][QUOTE="_Pedro_"]

"The lowest-piracy countries are the United States, Japan, New Zealand, and Luxembourg, all near 20 percent. The highest-piracy countries are Armenia, Bangladesh, Georgia, and Zimbabwe, all over 90 percent."

How do you even calculate stuff like this? Do you mean to tell me that if piracy wasn't around they would purchase stuff? Somehow I find that very hard to believe..

cobrax75

Piracy in Russia has drasticlly fallen after they started giving out serious prison time to those who sold pirated software....like 4 years time, and Russian prisons are no joke.

Oh noez! this gigantic economic machine with all the little gears(you) isnt working to maximum capacity,quick,increase the caffeine contenet of coffee and label all those who oppose us as domestic terrorists!

they still have some great hackers LOL but seriously none of these poor countries will buy $60 games why would u even think hey would. My software idea works people if its done right kemar7856

I've got tons of friends from Bangladesh who all told me that piracy there is unbelievable. You can find all the latest movies and stuff like 16 movies in 1 CD for like 3-4 bucks. Gaming is the same, almost every game can be found there.

game piracy could reduce if all games had to be activated through things ike steam. But movie piracy will continue. Or may stop untill we all have super high tech wireless DVD players that register all DVDs on the internet :P

Lets ramp it up to 100bill this year!

These numbers are completely fictitious, and the idea that every "copy" is a lost sale is completely unreasonable, and moronic if actually believed.

game piracy could reduce if all games had to be activated through things ike steam. But movie piracy will continue. Or may stop untill we all have super high tech wireless DVD players that register all DVDs on the internet :P

joshuahaveron

not that i support pirating, but i also dont support the over pricing of products... such as software.

but what is messed up is it seems that pirates are scapegoats for all software devs/publisher's short comming..

sad thing is no one takes responsibility or has accountability....

but there is always someone there waiting for the profit.

im no pirate. nor do i support piracy, but its time that people actually start thinking, instead of actually "believing" everything they read, see or hear.

but what is messed up is it seems that pirates are scapegoats for all software devs/publisher's short comming.Lach0121

[QUOTE="Lach0121"]but what is messed up is it seems that pirates are scapegoats for all software devs/publisher's short comming.WillT12345

You might aswell shout at a brick wall with the letters TGJ spray painted on it,what is moaning about piracy going to do? nothing..will any of these crappy DRM things do anything either? no! will piracy ever end? no!.So spend more time getting developers to make half decent games for once and a little less b!tching and moaning about things that will always be and have always been.

It somewhat baffles me that people justify priracy, especialy the line "I wouldnt have bought it anyways" then dont we do not care that you do not buy the software, we are against you thinking you are somehow "entitled" to get it anyways. (By "you" I mean pirates, I just prefer you over one)

I honestly think the west should revalidate the view of Piracy, im all for it being punished by Prison.

The common exception is however in most of asia, where the games/programs does not even come out at all, in such cases I do think it can be, while not forgiven then understood atleast.

BTW: one of the reasons why piracy has fallen in Russia, is because Publishers have begun to focus on it, it was very hard getting your hands on newgamesnomore then 5 years ago.

When western pirates somehow show pride in them getting pirated games however it is a whole other issue, if you cant pay the price, or the game did not interrest you in the first place, thenforget about it.

Not like you would want to work for 2 years, and then not get payied by your employer (which basicly piracy is doing). It baffles me that people complain about a 60$ pricetag on a game, andthen brag about thier300$ sneakers, honestly it shows a disconnect.

A Note: the defence "make devs make decent games" REALLY doessnt hold up the best games are amongst those pirated the most.

Me saying devs need to make decent games had no correlation to piracy,devs just need to make good games for a change.I just think everyone that is pissing and moaning about piracy could do better elsewhere since its not going to change,and thats not me being pessimistic.. its me being realistic.Piracy is one side of the same coin,gamers,music listeners,movei watchers just need to deal with that fact instead of regurgitating the same crap you have for the past 20 years+

[QUOTE="WillT12345"][QUOTE="Lach0121"]but what is messed up is it seems that pirates are scapegoats for all software devs/publisher's short comming.Astaroth2k

You might aswell shout at a brick wall with the letters TGJ spray painted on it,what is moaning about piracy going to do? nothing..will any of these crappy DRM things do anything either? no! will piracy ever end? no!.So spend more time getting developers to make half decent games for once and a little less b!tching and moaning about things that will always be and have always been.

the bottom line is they just need to make good games, not CLONES. you can cry all day about pirates stealing games, but developers steal from us all the time too but get to do it legally. they get paid and use the same old engines, and design the game with FLAWS in mind....that way they can release future games that are better. That just doesn't fly with me well, design your games the best you can....don't leave stuff out on purpose in fear of makeing a game too good.machiavell8x8

[QUOTE="machiavell8x8"]the bottom line is they just need to make good games, not CLONES. you can cry all day about pirates stealing games, but developers steal from us all the time too but get to do it legally. they get paid and use the same old engines, and design the game with FLAWS in mind....that way they can release future games that are better. That just doesn't fly with me well, design your games the best you can....don't leave stuff out on purpose in fear of makeing a game too good.WillT12345

I think developer's are going to need to lower the costs of games in order to combat piracy. Why would someone pay $50 for a game like Call of Duty 4: Modern Warfare, when they can get Team Fortress 2, a game that's just as great, for $20? The high price is asking for people to pirate the games. Mind you, I paid for both of those games, yet when I look back at both purchases, Team Fortress 2 is clearly the better choice. I paid for much more with a lot less. If developers dropped their prices it may take away that incentive to pirate games. remmbermytitans

Did the software industry spend $49billion on DRM?

While i dont condone or participate in piracy i really cant feel sorry for them as long as they are releasing 4hr long games for $60 or charging people up to $10 a pop for DLC that should have been included in their shallow game from the start.

In a perfect world nobody would pirate....but in a perfect world all the games would be worth the asking price.

So geographically speaking, levels of piracy are apparently inversely proportional to level of income? Well surprise, surprise. If publishers sort out their pricing for different regions, they'll see their sales recover a bit.jimmyjammer69

Of course,but these are companies and they dont stoop so low as to inherit basic human values unless there is a profit in it.

Pretty shocking.

Unfortunately in the third world, the pirate market often outstrips the legitmate market, and P2P/bittorrent has made piracy ridiculously easy and convenient.

Piracey is ok if you`re doing it for the lulz. Apart from that it`s really bad

I've got tons of friends from Bangladesh who all told me that piracy there is unbelievable. You can find all the latest movies and stuff like 16 movies in 1 CD for like 3-4 bucks. Gaming is the same, almost every game can be found there.

CyberAltair5

[QUOTE="Astaroth2k"]

[QUOTE="WillT12345"]WHAT???? the pirates ARE the ones stealing the software. Defending pirates and saying that it is the developers fault for them stealing it, I'm sorry but what are you smoking?? I can see the headline now, "man steals car and blames the manufacturer for not putting a better lock on it".WillT12345

You might aswell shout at a brick wall with the letters TGJ spray painted on it,what is moaning about piracy going to do? nothing..will any of these crappy DRM things do anything either? no! will piracy ever end? no!.So spend more time getting developers to make half decent games for once and a little less b!tching and moaning about things that will always be and have always been.

wow, some people dont read too well.

what i was pointing out was the BS of both, i was not defending piracy, go ahead and read my post again..

you need to use a little more critical thinking before you post my friend.