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P2P Networks Blamed For Software Losses Doubling

L1TH10N writes "CNET News is reporting that software manufacturers have doubled their losses to $29 billion dollars, according to a BSA survey, which is blaming P2P networks for their misfortune. Seems a little too far-fetched to me - a P2P network would be the last place where I would download software, just too much chance that you are downloading a trojan onto your computer. Me thinks the Business Software Alliance are jumping on the bandwagon and vilifying P2P networks just as the Senate is taking aim at P2P providers."

6 of 786 comments (clear)

  1. BSA has zero credibility... by jerkychew · · Score: 5, Interesting

    BSA is the group that was mass-mailing towns a couple years ago, giving small business owners 30 days of 'amnesty' to get their licenses caught up.

    Thing is, the BSA had zero proof that anybody was doing anything wrong. They just got a list of small businesses from the local town hall, and sent mass letters to everyone in the town. I got mine.

    Point is, don't believe anything the BSA says or does.

  2. Re:Whew by momogasuki · · Score: 5, Interesting

    I wonder how The Business Software Alliance determined that the software industry's $29 billion in losses were due to p2p networks, and not due to increased use of open source software.

  3. The BSA doesn't seem to employ any statistician ! by Zorglub1234 · · Score: 5, Interesting
    Some more details about the study are available at http://www.bsa.org/globalstudy/

    It's worth reading, even if there is not much information. Their methodology is still laughable. Any statistican who reads their study would throw it in the wastebasket immediately. Or rather, he would use it as an example of "what not to do" for his first year students.

    So the study don't say anything about opensource -- so as mentioned before, anyone who uses OpenOffice counts as a pirate. The press releases of BSA say that this factor has been taken into account but (1) I haven't seen anything in the report and (2) you can't, except if you accept very wide error margins.

    Talking about which, their report do not provide any kind of estimation about the errors, which is a good indication that the people who made it are not competent. For example, BSA insists on the difference between an illegal copying rate of 32% in Australia, versus 29% in other countries -- there is NO WAY that such a difference can be significant given their methodology.

    The worst thing, as mentioned by other people, is that this piece of crap will be shown to every government on the planet to lobby them to enforce IP laws and make new ones if "necessary".

    Zorglub

  4. Re:Lost Revenue: Formula by mutewinter · · Score: 5, Interesting

    One way to describe this is to imagine cars as software. Instead of stealing a BMW, think of the thief "duplicating" it. Ok, so there will be alot of people who decided not to shell over $50k for a new beemer -- they could have, but the got it for free instead. Now add in all the people who can't afford $50k for the new BMW, but got one because it was free. The way the BSA (MPAA and RIAA are doing the same) is making these calculations is by saying everyone who is driving a BMW they didn't pay for is $50k in lost revenue. Then factor in the third-world were people may be lucky to make $1000 a year -- they aren't going to pay $20 for software much less $500.

    Yes, software companies *are* loosing money to "piracy." Many are indirect losers. Lets go back to the BMW thing again. Who would buy a Ford if they could have a free BMW instead? Same with software companies, people aren't buying Paint Shop Pro because they got Photoshop for free. However, the BSA, MPAA, RIAA, and others are destroying their credibility by giving out ridiculously exagerated numbers. Remember the people who told you pot was as bad as herion?

  5. Re:Newsgroups by nmk · · Score: 5, Interesting

    The funny thing is that Bill Gates feels exactly the same way. Someone my parents know recnetly spoke to Bill for advice regading a software package his company is developeing. Bill esentially said that his big mistake was to charge people on a one time per license basis. He said something to the effect that he's now having to include useless bells and whistles in his software to try to get people to upgrade, but it isn't working. He's now trying desperately to move on to a subscription based model for most of his software (wow, thats original). Anyway, just thought slashdotters might find that interesting.

    This could be considered offtopic, but I think not. This is where the software industry should look when trying to account for their losses.

  6. Re:Silly article summary by Alexis+de+Torquemada · · Score: 5, Interesting

    Would you people please stop using this as a justification to not pay for something! I can't beleive what I am reading,

    Learn to read, if you will. He wasn't justifying illegal copying, but pointing out that despite the GGP's claim that the software industry was effectively dying.

    There are 1000's of people downloading software at no cost to them, which is normally sold for a price, how can that not hurt a company?

    How would it hurt your company if those people hadn't bought your software otherwise? If someone copies Photoshop 8 in order to produce a few graphics on his personal homepage, is he stealing Adobe $1200? What do you think would've happened if he hadn't been able to pirate any image editing program?

    1. He would've bought Photoshop (overkill for his purposes) for $1200.
    2. He would've bought another company's simpler tool for $29.95.
    3. He would've downloaded The GIMP for free.

    Whether the correct answer is 2 or 3, it most certainly isn't 1. In both cases, he wouldn't have paid Adobe any more money than by pirating Photoshop. So in effect, piracy may hurt the competition, rather than the company whose product is illegaly copied.

    So, based on all this crap people are trying to unload with regards to copyright and justifications based on prices or features, blah, blah. Let's just take the example of a Newspaper, there is copyrighted information in that and for the most part, this stuff is available online, so instead of reading the Times online, step into your local news stand, grab a copy and walk out, do you think that you will be stopped?

    There is a real cost for printing a newspaper, and, more importantly, they might later run out of copies so they can't service paying customers any more. The same is not true for file sharing. Try stealing a hotdog. Do you think you will be stopped?

    Lastly, have you seen the balance sheet on this company? they are making billions! How can they get away with this?

    No, but if my company makes billions in software then I'm not supposed to whine all day about rip-offs, that's just ridiculous. Copying Photoshop or MS Office is illegal, but I'll spare my pity for those who're really in need, like kids in India whose parents can't afford $10 for diarrhea medication.

    I posit that Adobe and Microsoft actually benefit greatly from piracy, and that it's the smaller competition instead which suffers. Why? If tomorrow was the day on which copying MS Office and Photoshop became impossible, what do you think would happen?

    1. Lots of people would shell out the last $1700 hidden under their pillow in order to buy the most recent versions of Office and Photoshop.
    2. Lots of people would switch to competitors' products, including free alternatives such as OpenOffice and The GIMP.

    In the short term, MS and Adobe might see more profits, but in the long term, a lack of a private user base would hurt their business sales dramatically. Just consider that Microsoft is currently promoting MS Office over the OOo/SO competition by pointing out that people are already used to MSO and would need to be retrained expensively. Wouldn't this argument be reversed if home users actually preferred OOo? And then consider Microsoft's statement that they do not plan to enforce their copyright towards private users. Why not? Simply because a "stolen" MS product is still more useful to them than a legally purchased competitor's product. By far!

    Who do you think hurts Microsoft more? A student who pirated Windows XP, or myself? I'm not running XP at all, I'm running Gentoo Linux. Moreover, I'm a software developer. Switching from Windows to Linux has made me aware of portability issues. All applications that I produce now (at least if I'm given the choice) are portable to just about any platform of your preferrence, or easily made so. I use wxWidgets for GUI, mult