The Benefits of Reducing Software Piracy Translate into Jobs, Economic
Output and a Stronger IT Sector for Canadians
TORONTO, Jan. 22 /CNW/ - Reducing software piracy over the next four
years in Canada by 10 percentage points could create a stronger local
information technology (IT) sector, generate over 5,200 new high paying jobs,
contribute $2.7 billion to Canada's economy and $875 million in additional tax
revenues for federal, regional, and local governments between 2008 and 2011
according to a new study released today by the Business Software Alliance
The study, commissioned by BSA and conducted independently by
International Data Corporation (IDC), notes that the IT industry already is a
major contributor to jobs, tax revenues and Canada's gross domestic product
(GDP). In a country of more than 33 million people, in 2007 nearly $35 billion
was spent on information technology (IT) including computers, peripherals,
network equipment, packaged software and IT services. That spending accounted
for 2.7% of gross domestic product (GDP), supported more than 25,000 IT
companies with 272,650 IT industry employees, and helped generate
$35.6 billion in IT-related taxes.
Reducing Canada's 34% software piracy rate by 10 percentage points would
have a "multiplier effect" and increase those economic benefits, generating
approximately 5,200 additional jobs, $875 million in tax revenues and
$2.7 billion in spending in the local IT sector over the next four years.
According to the BSA global piracy study in 2007, Canada remains among the top
20 countries with the lowest software piracy rates worldwide, behind Australia
(29 per cent), Netherlands (29 per cent), Norway (29 per cent) and Israel
(32 per cent). Canada also lags behind the U.S., where the software piracy
rate remains unchanged at 21 per cent.
"When countries take steps to reduce software piracy, everyone stands to
benefit," said Michael Murphy, Chair, BSA Committee Canada. "With more and
better job opportunities, a stronger, more secure business environment, and
greater economic contributions from the already robust IT sector; reducing
software piracy delivers tangible benefits for governments and local
IDC finds that for every $1 spent on legitimate packaged software, an
additional $1.25 is spent on related services such as installing the software,
training personnel, and providing maintenance services. Most of these benefits
accrue to locally-based software services and channel firms - meaning the
greatest proportion of the economic benefits from lowering software piracy
stay within the country.
IDC research released by BSA in May 2007 estimates that 34% of PC
software installed on personal computers (PC) in Canada in 2007 was
unlicensed. BSA spends much of its efforts building awareness among small &
medium-sized enterprises (SMEs) about the risks and legal consequences of
using unlicensed PC software.
"Reducing PC software piracy is important for business owners and SMEs in
order to reduce the legal and business risks of using unlicensed software,"
said John Gantz, Chief Research Officer at IDC. "But software is unique in its
ability to drive value throughout other sectors. Thus, policy makers should
find a compelling case for taking steps to reduce software piracy in order to
reap the economic benefits of a strong national software and IT sector. It's
clear that reducing software piracy delivers real results that help real
people with real challenges."
BSA encourages governments that want to enjoy the economic benefits of
reducing software piracy to take the following steps:
1. Update national copyright laws to implement World Intellectual
Property Organization (WIPO) obligations;
2. Create strong enforcement mechanisms, as required by the World Trade
Organization (WTO), including tough anti-piracy laws;
3. Dedicate significant government resources to the problem, including
national IP enforcement units, cross-border cooperation, and more
training for local officers;
4. Improve public education and awareness; and
5. Lead by example by requiring the public sector to use only
legitimately licensed software.
The new BSA-IDC study is available online at www.bsa.org/idcstudy and
examines the bottom-line economic benefits of reducing PC software piracy in
42 countries. The cornerstone of the research is IDC's Piracy Impact Model
(PIM), which takes inputs from IDC's market research around the globe on IT
spending and software piracy, along with other information on IT employment
levels and IT-related taxes.
The Business Software Alliance (www.bsa.org), formerly known in Canada as
the Canadian Alliance Against Software Theft, is the foremost organization
dedicated to promoting a safe and legal digital world. BSA is the voice of the
world's commercial software industry and its hardware partners before
governments and in the international marketplace. Its members represent the
fastest growing industry in the world. Working with its partners in Canada and
other countries worldwide, BSA educates consumers on software management and
copyright protection, cyber security, trade, e-commerce and other
Internet-related issues. BSA member companies in Canada include Adobe Systems,
Apple, Autodesk, Avid, Bentley Systems, Borland, CNC Software/Mastercam,
Corel, Microsoft, Mindjet, McAfee, Monotype Imaging, PTC, Siemens PLM,
SolidWorks, Sybase, Symantec, and The MathWorks.
Company names herein may be trademarks of their respective owners.
IDC is the premier global provider of market intelligence, advisory
services, and events for the information technology, telecommunications, and
consumer technology markets. IDC helps IT professionals, business executives,
and the investment community make fact-based decisions on technology purchases
and business strategy. More than 900 IDC analysts provide global, regional,
and local expertise on technology and industry opportunities and trends in
over 90 countries worldwide. For more than 43 years, IDC has provided
strategic insights to help our clients achieve their key business objectives.
IDC is a subsidiary of IDG, the world's leading technology media, research,
and events company. You can learn more about IDC by visiting www.idc.com.
For further information:
For further information: or to speak to a BSA spokesperson, please
contact: Nicole Leaver, Hill & Knowlton, Nicole.email@example.com,
(416) 413-4734; Amy Diniz, Hill & Knowlton, Amy.firstname.lastname@example.org,