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Software piracy claims losses of US$4b in Asia

By Irene Tham, CNET on May 22nd, 2001

Summary

Asia Pacific (including Japan) accounted for the highest revenue losses due to software piracy last year.

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SINGAPORE--Asia Pacific (including Japan) accounted for the highest revenue losses due to software piracy among corporate users last year.

Specifically, losses in the region hit over US$4 billion for the first time, contributing about 35 percent to a worldwide figure of US$11.8 billion, said the Business Software Alliance (BSA) in a statement today.

It was citing the sixth annual survey conducted by independent research firm International Planning and Research Corp.

The BSA is a global watchdog which educates the public on software copyrights and advocates public policies that promote the development of the software industry. Its members include Microsoft Corp, Adobe Systems Inc, Apple Computer Corp, Macromedia Inc, Corel Corp and Symantec Corp.

According to the survey, last year's revenue losses in Asia Pacific represented a 46 percent jump from US$2.8 billion in 1999. Meanwhile, piracy rate increased to 51 percent, from 47 percent in 1999.

Explaining the surge in losses, BSA Asia Pacific vice president & regional director Jeffrey Hardee said: "Software sales did not match the strong PC shipment in Asia last year. In addition, many Asian currencies were weak against the US dollar."

Hardee also attributed the widened losses to increased piracy rates, particularly in Japan (37 percent), China (94 percent) and Korea (56 percent). The three countries were also hardest hit in terms of revenue losses (see Table).

On a global scale, piracy rate rose to 37 percent last year from 36 percent in 1999.

Worldwide losses (of US$11.8 billion), however, represented a decline of 3.5 percent from US$12.2 billion in 1999.

According to the BSA, "this decline in dollar terms is not an indication of a decrease in piracy". In fact, the dip was a result of the strong US dollar, declining software prices and slow software sales, it noted.

Table : Piracy in Asia Pacific in 2000

Countries Piracy Rates (%) Revenue Losses (US$M)
1999 2000 1999 2000
Australia 32 33 150.4 132.5
China 91 94 645.5 1,124.4
Hong Kong 56 57 110.2 86.2
India 61 63 214.6 239.6
Indonesia 85 89 42.1 70.0
Japan 31 37 975.4 1,666.3
Korea 50 56 197.3 302.9
Malaysia 71 66 84.2 95.6
New Zealand 31 28 19.7 12.4
Pakistan 83 83 18.9 31.4
Philippines 70 61 33.2 27.1
Singapore 51 50 61.8 44.3
Taiwan 54 53 122.9 154.8
Thailand 81 79 82.2 53.1
Vietnam 98 97 13.1 34.9
Others 71 75 20.3 7.6
Total 47 51 2,791.5 4,083.1
Source: BSA

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