Georg HerrnlebenDirector, Central & Eastern Europe

BSA

Software Piracy in PolandIndustry losses and economic impact

The IDC studies

BSA regularly commisions and co-authors two studies executed by research analyst IDC on the scope, development and effects of software piracy worldwide. These studies – the IDC Piracy Study and the IDC Impact Study – cover some 80 countries in detail.

Methodology of the IDC Piracy study

The percentage of all software used that is not licenced is here called the piracy rate. The market value of the software pirated is labeled as piracy damages. In 2006, the global piracy rate was 35%, while the damages were 39,6 billion US-dollars (USD).

In short, both the rate and damage are calculated by measuring the demand for software as estimated by the number of new PCs sold in a given country against the amount of software licensed, while correcting for local differences such as open source usage, amount of software installed on the average PC and so on.

Poland: piracy rate development

58% 59% 58% 57%

0%5%

10%

15%

20%25%

30%

35%

40%

45%

2003 2004 2005 2006

Piracy rate

Poland: piracy damages development

301

379 388

484

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2003 2004 2005 2006

Damages inmillion $

Software Piracy in Europe: EU

25%26%26%26%27%27%27%28%29%29%

36%39%

42%43%45%46%51%

56%57%61%

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Software Piracy in Europe: Non - EU

84% 80%

69% 69%

55%

29% 26%

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Damages in Europe (EU)USD millions

484

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European overview

On a pan-European scale, software piracy is widespread especially in southern European countries, while the Nordics, central Europe and the UK have been among the most compliant in recent years. A continuing positive development in the EU accession states has led to a situation where the rates in Hungary (42%) and the Czech Republic (39%) are now lower than those in France (45%) or Italy (51%).

Worldwide situation

55%/11,6 bn $

34%/10,6 bn $

22%/8,1 bn $

68%/4,1 bn $66%/3,1 bn $

60%/2 bn $

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Piracy Rate

Damages

Global study of rate of unlicensed software in use

Worldwide losses: 39,6 billion USD highest overall losses: USA (7,3 bn. $),

China (5,4 bn.), France (2,6 bn.) Piracy worldwide: 35% Lowest rates: USA (21%), New Zealand

(22%), Japan, Denmark (25%) trouble spots: Russia (80%, 2,2 bn. $),

China (82 %, 5,4 bn $), Armenia (95%, 8 million $)

General trend: low piracy rate, established software & IT-industry

Software piracy Study: scope and damage

IDC Impact Study : Expanding the frontiers of our digital future

Analysis of IT-industries in various countries

Prognosis of development until 2011 Scenario: 10 percent reduction of

software piracy rates

Poland until 2009

in 2007: 8,1 billion USD revenue in the IT-

Industy92.500 IT employees2,8 billion USD IT tax revenue

2011 without reduction of piracy rate12,2 billion USD revenue in the IT

industry122.040 IT employees4,2 billion USD IT tax revenue

Piracy rate of 57 % causes annual revenuelosses of 484 million dollars.

Economic impact of reduced piracy rate in Poland

Reduction of 2,5 % annually would mean: 1.900 additional jobs (123.940 in total) 110 million dollars additional tax revenue 725 million USD additional IT revenue

Thank you

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