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Combating Software Piracy Billions to be Generated in Added Economic Activity in India

SME WORLD Bureau
Oct 2010

According to the new study titled “The Economic Benefits of Reducing Software Piracy” from Business Software Alliance and the leading global market research firm IDC, reducing the 65 percent software piracy rate in India by 10 percentage points over four years would create over 59,728 high-tech jobs, $4.6 billion in new economic activity, and close to $512 million in new taxes by 2013, with 76 percent of those benefits expected to remain in the local economy.

The study also found that if India were to reduce piracy by 10 points over the next two years instead of four, it would boost the economic activity and tax gains by a further 32 percent. India would then produce $6,132 million in new economic activity by 2013 instead of $4,662 million and generate $676 million in new tax revenues instead of $512 million.

Economic Interest

Therefore, it is clearly in the economic interest for India to focus on reducing software piracy in a systematic way.

“The Economic Benefits of Reducing Software Piracy” is based on IDC's Piracy Impact Model, which incorporates market research on IT spending, loss of revenue from software piracy around the world by software publishers, IT service firms and distributors etc., along with information on software related employment creation and IT-related taxes. The study also takes into account the ratio between spending on legal software and spending on related IT services and distribution in each market.

“Reducing software piracy is an opportunity to inject much-needed stimulus into Asia Pacific economies.” said Mr. Roland Chan, Senior Director- Marketing, Asia-Pacific, BSA. “This study clearly shows that aggressively fighting software piracy today means greater economic benefits tomorrow — for the region's economy, not just the software industry.”

“This study clearly demonstrates that a slow pace in piracy reduction affects the overall economic growth of the IT industry in India, de-incentivizes local product companies' innovation efforts, undermines Government's ability to collect legitimate taxes from legitimate software sales and fuels organized criminal activity linked with piracy. In terms of direct threats, it impactsusers, including individuals, small and medium businesses, corporates and governments who face a serious threat to their PC security, besides financial and legal liability, and ensuing mitigating costs and the software manufacturers who lose their valuable and multi-billion R&D investments every year. This also reduces the ability of the software product industry to generate more local jobs and foster local business opportunities in the areas of sales, distribution, service, maintenance, advisory, training and application development, which depend upon the genuine software product eco-system. Needless to say, use of genuine software is in the benefit of all and there must be a concentrated effort by Government, Consumers and the Industry to reject, prevent and attack piracy”, said Mr Keshav S Dhakad, Chair of the India BSA Committee.

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1 Comments >>

Beyonce

09 Jan 2012 (15:02:14)

Didn't know the forum rules allowed such brlialint posts.

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