PC Software Piracy in Canada at its Lowest Amidst Global Recession

Study Finds Commercial Value of Illegal Software Reaches $51.4 billion Worldwide

TORONTO, May 11 /CNW/ - Installations of unlicensed software on personal computers (PC) in Canada fell from 32 to 29 per cent in 2009 representing a commercial value of US $943 million, according to the seventh annual Global Software Piracy Study released by the Business Software Alliance(BSA).

The annual study, conducted by global IT market research and forecasting firm IDC, estimates global PC software piracy rates and the commercial value of unlicensed software in 111 economies by collecting more than 182 discrete data inputs and evaluating local PC and software trends through a combination of proprietary research, end-user surveys and quarterly tracking reports.

"At 29 per cent, Canada's software piracy rate is at an all-time low, which demonstrates the progress that can be made through greater consumer education, legalization programs by software companies and better enforcement of licensing rules," Michael Murphy, Chairman of the BSA Canada Committee. "As we emerge from the most severe global economic recession in twenty years, BSA will continue to engage with government, businesses, and consumers about the risks of stealing software - and the true impact that software piracy has on Canada's economy."

Despite the global economic recession, the study found that piracy of software on PCs declined in many markets worldwide, dropping in 54 economies and increasing in only 19. However, the global piracy rate increased from 41 to 43 per cent, largely the result of fast growing, higher piracy markets such as China, India, and Brazil increasing their share of the overall software market. Globally, the commercial value of pirated software in 2009 was $51.4 billion.

Other findings include:

        -  PC shipment growth in Canada was down four per cent over 2008,
           while consumer shipments grew two per cent. More than 75 per cent
           of software deployed in 2009 went to consumers and as software
           shipments continued to grow, piracy dropped considerably.

        -  PC software piracy dropped in 54 of the 111 countries studied;
           however the worldwide piracy rate rose from 41 per cent in 2008 to
           43 per cent in 2009, due to exponential growth in PC software
           deployments in emerging economies.

        -  The United States, Japan, and Luxembourg continue to hold the
           lowest piracy rates of countries surveyed (20, 21, and 21 per
           cent, respectively); countries with the piracy rates of 90 per
           cent or above include Georgia, Zimbabwe, and Moldova.

        -  For every $100 worth of legitimate software sold in 2009, an
           additional $75 was pirated.

        -  Forces driving piracy down included vendor legalization programs,
           government and industry education campaigns, enforcement actions,
           and technology shifts, such as the increased deployment of digital
           rights management (DRM) and greater use of software asset
           management (SAM).

        -  Factors driving piracy rates up included rapid growth of the
           consumer PC market, and greater activity in the installed base of
           older computers where unlicensed software is more prevalent, and
           the increasing sophistication of software pirates and cyber

"The BSA/IDC Global Piracy Study shows there was some progress in the global fight against software piracy in 2009 - but incremental change is not enough," said Robert Holleyman, BSA president and CEO. "Piracy is limiting IT innovation, job creation, local economic growth and is robbing governments of vital tax revenues. The report makes it very clear that governments around the world must redouble their efforts to combat software theft."

The 2009 BSA/IDC Global PC Software Piracy Study covers piracy of all software that runs on PCs, including desktops, laptops, and ultra-portables, including netbooks. This includes operating systems, systems software, such as databases and security packages, and applications software. The study also looks at legitimate free software and open source software. It does not include software that runs on servers or mainframes.

Please visit www.bsa.org/globalstudy for a copy of the study and a video on the study's methodology delivered by IDC lead researcher John Gantz.

About BSA

The Business Software Alliance (www.bsa.org) 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 one of the fastest growing industries in the world. BSA programs foster technology innovation through education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce. BSA members include Adobe, Apple, Autodesk, Bentley Systems, CNC Software/Mastercam, Corel, CyberLink, Dassault Systèmes SolidWorks Corporation, Embarcadero, McAfee, Microsoft, Minitab, PTC, Quark, Quest Software, Rosetta Stone, Siemens, Sybase, Symantec, and The MathWorks.

About IDC

International Data Corporation (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 1000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 46 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

SOURCE BSA | The Software Alliance

For further information: For further information: Megan Ramsay, (416) 413-4602, megan.ramsay@hillandknowlton.ca; Melita Vega, (416) 413-4743, melita.vega@hillandknowlton.ca

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BSA | The Software Alliance

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