The rate of worldwide software piracy continued to drop in 1998, but remains woefully high in Russia and Asia.
According to a study released Tuesday, 38 percent of the 615 million new business software applications installed worldwide in 1998 were pirated. That's down from 40 percent the previous year. Since 1994, when the piracy rate was just below 50 percent, illegally obtained software has dropped every year.
But in Vietnam, China, Indonesia, and Russia, more than nine out of 10 business software applications are still being pirated.
"Even though piracy still remains a big problem in China, we have come a long way in terms of one particular kind of piracy -- the clamping down on factories that produced duplications of CD-ROM's," said Ken Wasch, president of the Software and Information Industry Association. "With significant pressure coming from the US government, the Chinese government has shut most of them down."
In Russia, help from the local government is not as forthcoming, Wasch said. "But what do you expect? Is there even really a functioning government in Russia at the moment?"
North America, Asia, and Western Europe accounted for 80 percent of the revenue losses in 1998, the study said.
Revenue losses to the global software industry due to piracy in 1998 were estimated at US$11 billion, according to the fourth annual Global Software Piracy Report published by the SIIA and the Business Software Alliance.
The BSA and the SIIA plan to attack global piracy using education, litigation, and legislation, said Diane Smiroldo, vice president of public affairs for BSA.
"Globally, we are initiating programs in different countries that help raise awareness among government agencies, corporate managers, small and mid-size business owners, as to what the pitfalls of using illegal software might be," Smiroldo said.
"There can be viruses which can affect productivity. There are legal risks and potential hefty fines and there is embarrassment: We often publicly name and denounce those involved in piracy, and reputations can be affected."
Smiroldo said one of the main objectives was to get governments around the world to set an example to the private sector, and to follow the example of President Clinton's goal in making sure that all government agencies use only legal software.
The complete text of the 1998 Global Software Piracy Report –- including charts, graphs, and methodology -- can be accessed at www.bsa.org or www.siia.net.
