'Software Piracy Costs $197million'

Despite stringent copyright laws, 65 per cent of the installed software applications in India are pirated versions accounting for a loss of $197.3 million, said Venessa Hutley, president, Business Software Alliance (BSA).

"With the software industry in India on a high growth path, strict enforcement of copyright laws is imperative," Hutley said while addressing a seminar on software asset management jointly organised by Nasscom and BSA.

BSA is an international agency engaged in protecting and promoting a global software industry.

The domestic market for software in 1998-99 was estimated at Rs 4,950 crore and the projection for 1999-2000 is Rs 7,300 crore. This segment is expected to register 50 per cent growth annually provided there is rigorous enforcement of copyright laws. Globally, the piracy rate is 38 per cent, a loss of $11 billion.

 

India is, however, not the only country in the region with the dubious distinction of a high software piracy rate. China, with a piracy rate of 95 per cent, has a huge problem on hand, Hutley said.

Piracy is not restricted only to developing countries. Although the software piracy rate at 25 per cent is the lowest in the US, it accounts for losses totalling $2.5 billion, the highest in the world.

"One of the largest BSA campaigns is in the US. There is a high degree of corporate piracy in the US as against counterfeit piracy which is more common in Southeast Asia," Hutley said.

Consequently, software companies based in the US now have an effective legal sales presence across the globe. Besides, they have also increased the availability of user support for their products outside the US, she added.These provide a compelling reason to purchase legal software.

In India, BSA and Nasscom together are engaged in assisting enforcement officials in taking action against counterfeit software resellers and end users.