Quarter of Australia's software is counterfeit
Summary: The rate of illegal software being installed on PCs in Australia is dropping, but not as much as some in the industry would like
Australia's counterfeit-software rate is dropping, but not as aggressively as some in the industry would like.
Twenty-nine percent of software installed on PCs in Australia in 2006 was obtained illegally, according to a new study by analyst house IDC, sponsored by the Business Software Alliance (BSA): a two percent drop from 2005 levels. In comparison, China has a counterfeit-software rate of 82 percent, while globally the average is 35 percent.
In 2007, Australia spent over AU$1,000 (£470) per capita — AU$25.4bn — on IT, including computers, peripherals, network equipment, packaged software and IT services. The IT spend accounts for three percent of gross domestic product, an industry employing 178,000 workers in 23,500 companies and AU$11.6bn worth of tax.
The BSA believes these numbers could be larger if counterfeit-software were reined in. "We would like to see a 10 percent drop in the next four years," a spokesperson for the BSA's Australian arm said. "In order to sustain a healthy innovative environment, protection of IP is essential."
The BSA received 1,900 calls on its hotline reporting counterfeit software in 2007, resulting in AU$560,000-plus in settlements on 14 cases. The average settlement amount was AU$45,000, while the highest settlement was AU$125,000.
The calls came from people who are in contact with the company such as employees or third-party vendors. Reporting of cases can be done anonymously but, to follow a case, an affidavit is required from the informant.
Some of the calls turn out to be bogus reports, others minor infringements. The rest are still going through due diligence, according to the spokesperson.
Of the offenders, only a handful were "extraordinarily flagrant breakers" according to the BSA, with many businesses using illegal software being horrified when they discovered this was occurring in their organisation. It may be a case of employees downloading the software without the knowledge of management, or buying one copy and having multiple people use it, the spokesperson said.
It is especially difficult to keep track when businesses are growing, the spokesperson said, adding that "sometimes the auditing of software can be overlooked".
Vendors whose software has been illegally downloaded include Adobe, Autodesk, Symantec, Apple, Trend Micro, McAfee and Microsoft.
The BSA wants everyone in the business environment to take responsibility for their software and have a software asset management (SAM) process, and runs campaigns to raise awareness of licensing requirements.
The BSA offers resources on its website to help companies work out whether they are complying with licensing obligations.
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Talkback
That's rubbish
These survey findings have been static in nature for the last 10 to 15 years!
Our observation is that there has been NO appreciable downturn in the piracy rate despite these continued "survey" claims. The figures in reality from our perspective and experience are a lot higher.
As a seller of software to end user sites, over 90% of them want it for free and when you ask them for payment they are not keen to pay a cent and turn to free tools over paid software every day.
In fact they feel affronted when you ask for fees for software licences, like, why should they?
The software industry is hurting a hell of a lot due the "It's soft therefore its free mindset" of end users and the EULA and the BSA are causing this ansgt along with the Gen Y'ers who won't pay zip for any software at all!
In fact the Gen Y'ers have all the tools they need to circumvent and copy software at their fingertips and they will resist any software fees as a matter of principle.
Piracy rates will remain high and talking about how many jobs will be created if the piracy rate drops several %age points up to 10% is a load of cobblers. Someone is drinking their own bathwater!
Quite frankly the stats are not believeable or supportable.
It's time for a sea change in thinking on licensing issues, EULAs, software fees, and the attitudes of executives top down to the shop floor about paying for software!
Software companies will diminish in size as more and more sites gravitate to free and open source software and the large megasloths will slip away, so destroying the market models of free enterprise.