BSA Claims 35% of Software is Pirated
hdtv writes "Business Software Alliance says 35% of packaged software installed on PCs globally is pirated, and estimates the losses at $34 bln. From the article: 'The countries with the highest piracy rates were Vietnam (90%), Zimbabwe (90%), Indonesia (87%), China (86%), and Pakistan (86%). The countries with the lowest piracy rates were the United States (21%), New Zealand (23%), Austria (26%), and Finland (26%).' TechDirt analysis debunks some of the myths: 'The BSA claims that all of these "lost sales" represent real harm to the economy. It's the same bogus argument they've trotted out before, which is easily debunked. Much of that unauthorized software is being used to make firms much more productive than they would be otherwise -- probably benefiting the overall economy quite a bit.'"
Each pirated copy, contrary to the BSA (interesting, what does the BS stand for?) claim, not only is not a lost sale, but potentially an extra sale.
BSA's claim is akin to the MPAA/RIAA's claims each downloaded/pirated DVD/CD is a lost sale. And, there have (AFAIK, and I've researched this many times) been no studies coming close to showing causal relationship between pirating and decreased sales.
Interestingly, one of the most damning contra-examples was the huge spike in CD sales corresponding to the spike in file sharing at the emergence of the original Napster. Of course, once the RIAA and music industry managed to rein Napster in, the dropoff in shared files was matched almost identically for a decline of CD sales.
People, especially in the poor couuntries, are running pirated software because they otherwise would run no software at all. And, if with this pirated software, they manage to bootstrap their own situation, or that of their business out of the netherlands they become much more likely to buy and pay prices for non-pirated software.
Personally I think 35% is a very conservative estimate.
Much of that unauthorized software is being used to make firms much more productive than they would be otherwise -- probably benefiting the overall economy quite a bit.
This is the WRONG counter to their claims. The correct counter is that an unauthorized copy of a piece of software is NOT the same as a lost software sale.
In fact, if companies are using unauthorized copies of software to increase their business, that's when it's morally wrong to not pay for your software in my mind.
To me, it's like watching a illegally downloaded movie for personal (potential) entertainment vs. selling it on the street. The latter is the one I have a moral issue with and represents a more realistic loss of sale for the copyright holder.
I can't believe the US is doing so poorly in their rate of piracy. I guess I'll have to start pirating twice as much software just to help us make up the slack on the rest of the world!
The rest is open source and you can't pirate that.
That sounds like a challenge, and I accept.
New Zealand (23%),
:|
Yeah we have too many sheep here in NZ.. of course we have a low piracy rate.. That'd require people to know what a computer was
What losses after selling software at EXTRAVAGANT prices ?
... Consider it a market adjustment by the 'invisible hand' - an adjustment to balance out the ridiculous prices you sell software for.
Do they ALREADY count our money as theirs, and deem it as loss ?
Nay, sire
In the history of this world, there has NEVER been piracy UNLESS commodities' prices were not set in standards of highway robbery.
I aint giving me money to you sir. Not at THESE prices at least.
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Along those same premises, let's say, hypothetically, that I had a pirated copy of Adobe Photoshop on one of my PC's. I'm not a graphics professional, and have little use for it beyond making my own wallpaper. Are we to assume that I would actually pay the $699 price tag for this software? HELL NO.
What I would very much like to see is a poll comparing what people have pirated against what people have pirated and would pay for if they could not pirate it. I don't have any statistical evidence to back me up, here, but I'm going to hazard a guess that piracy leads to a lot less in actual losses than the BSA or the RIAA/MPAA assumes. And that is ignoring the fact that there are a rare few people that actually purchase a product just because they were impressed with the pirated copy, and wished ot support the author/creator.
Haven't we heard enough of this "piracy is going to kill our economy" bullshit? Why are we focusing on this, when the our (America's) trade deficit with China is over $200,000,000,000/year (yes, that is 200 billion dollars a YEAR at the current rate). Seems to me that this piracy thing is small potatoes, in the end.
/dev/random
The truth of the matter is that most people wouldn't buy that software if they couldn't get it for free. I'm sorry but the average home user doesn't have the cash for a copy of Photoshop, so yeah, they pirate it. If they couldn't pirate they wouldn't go out and buy photoshop, they'd download the Gimp.
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That's B.S. So a firm might be more productive (and profitable?) using a software package, thus contributing to the general economy. No argument with that. But I fail to see how this debunks the BSA's arguments. Is techdirt (or Mike, or whoever) arguing that the same firm would be less productive if it had paid for instead of pirated the software?
Some see the vessel as half full; others see it as half-empty; We pour it out on the floor and laugh
For now they are just talking. They can't take any enforcement actions, because those countries would simply switch to open source.
For example, they could threaten these countries with ejection from the WTO or other treaty-based organizations, but they won't... until those countries are economically viable enough to pay the exorbitant licensing fees.
And then they will win, because they can lock people in to their proprietary formats. They call themselves the Business Software Alliance. But they are really the Proprietary Software Alliance.
That techdirt line is great. If a company uses pirated software and makes profit they wouldn't have been able to make without that software, the BSA has a legitimate gripe with them. The heavy handed tactics are tiresome and they pretty much pretend with the statistics, but companies that generate profits exceeding the cost of a given program by pirating it are stealing in a very real sense.
Nerd rage is the funniest rage.
I pirate my software and spend the money I save on CDs. I'll let the RIAA and BSA fight it out between themselves.
All of those dollars the BSA is claiming as economic losses are actually being spent elsewhere. It's not a situation of money that should be out working loafing safely in a shoebox. Would we all reap more economic benefit from shifting money away from the other things into the software industry? I reckon not. Microsoft is probably one of the biggest claimants of the BSA loss statistic, and it is difficult to suggest that we would all be better off if they had more money or more freedom to make/improve software.
This is more of that smoke and mirrors trickle-down voodoo-economics gobbledygook. The BSA overwhelmingly represents the entrenched interests of large enterprises (you think big government is wasteful? How about big business..) against entrepreneurial business (where we see the most real economic growth).
--- Nothing clever here: move along now...
"Much of that unauthorized software is being used to make firms much more productive than they would be otherwise -- probably benefiting the overall economy quite a bit"
What is this software, and why isn't it available for Windows?
My new laptop came loaded with a ton of scumware. Solution: wipe the hard drive and reinstall windows. The recovery cds dilligently reinstall all the scumware, so my only option is to run a pirated version of Windows. Now I can't get updates, even after paying the windows tax.
Solution: learn every genuine advantage workaround, repeat them, and distribute pirated copies of windows. If you want to screw me over, I'm happy to return the favor.
In a similar situation, I find myself out of town and I accidently left my laptop power cable at home. I go to the store to get a replacement and it costs $120. Highway robbery if I ever saw it. My solution: return the new cable when i get back in town. If it cost less than $50 I would just keep it, but if they want to rob me, I have no problem robbing them right back.
Moral of the story: If you screw me over I have no problem returning the favor.
from the beginning most companies just can't afford to go out and buy several licenses of software that goes anywhere from $50-$10,000.
Then they didn't have enough money to start their business in the first place. Software licenses are supposed to be a cost of doing business. Would it be ok to squat in an abandoned building because they couldn't afford rent when they started their company?
"I use a Mac because I'm just better than you are."
How much does it cost you if I steal one of your chairs or desks?
How much does it cost you if I copy one of your CDs?
See the difference?
First things first, take back the name. It's not PIRATED software, it's duplicated, unlicensed software. Nothing was PIRATED, because NOTHING WAS STOLEN.
The claim that the business LOST $34 billion is flawed, since, in fact, business cannot LOSE what it never HAD: the $34 billion.
If we correct the grievance claim, and postulate that the business' suffered $34 billion of income deprivation, then that claim, too, is probably flawed. I suspect that most unlicensed, duplicated software is to the benefit of financially poor computer users, who might not otherwise have ANY access to the duplicated, unlicensed software.
Therefore, I postulate that the only real cost to the corporate world is the tax deductible charity receipt for helping the poorest of the poor with their computers.
If it were not for "piracy" laws, then they might be able to arrange for some kind of tax deductible charity receipt for unlicensed, duplicated software for low income computer users. But while such laws are in effect, it is unlikely that they will find low income users to be cooperative with any such effort.
"Forgive us our trespasses, as we forgive those who trespass against us." -Jesus Christ The Lord's Prayer
I'm desperately trying to figure out when Slashdot became pro-piracy. It's really become quite a pro-piracy haven these last few years. People think it's perfectly all right to steal software and not pay the author for it. They actually believe it's okay to download, for instance, Doom 3, and not pay John Carmack, even though he spent five years of hard work to release it. Even more hypocritically, you'll often hear that piracy isn't theft, but when a GPL violation is reported, it is referred to as "stolen code." Also, people act as though it's wrong for the RIAA or the MPAA to go after individual infringers (never mind that this is exactly what Slashdotters were calling for during the Napster lawsuit), but when there's a GPL violation, the EFF should get involved and sue the infringers. I just don't understand the disconnect. I have a feeling it really just boils down to money--people want to preserve the means to get stuff for free without having to pay for it. It has nothing to do with morality or ideals at all.
I also don't get TechDirt's hostile opinion towards the idea that--gasp--piracy is wrong and shouldn't be happening, and that it costs people money. Of course it does. The idea that some section of the economy is magically enhanced because they got to use pirated software ignores the section of the economy hurting from lost sales. And none of it matters anyway, because you don't magically have the right to pirate software just because it would enhance your company. What a selfish and amateurish opinion to have. My company would do better if we could hack into competitors' computers and copy their valuable trade secrets for ourselves, but we don't have the right to do that just because it would enhance our business.
Finally, I don't get why so many pro-piracy opinions exist in Slashdot comments, invariably with some mention of the "MPAA/RIAA," as though scapegoating some lobby group somehow justifies making sure some musician or filmmaker or software engineer doesn't get paid for something they worked hard on to release and make a living from. I think rooting for piracy is a weak, lazy mindset. It's the easy route to take, and illustrates that one has not thought through it at all. They likely are high school or college students who haven't had to go out into "the real world" and perform work in exchange for income. They're used to running Kazaa and eMule all day long, downloading everything they can find, and they get so used to such convenience that they get bitter and defensive when the free ride is taken away.
But, I don't expect the amateur opinions around here to change. People will continue to scapegoat the RIAA and MPAA as a lame justification--"The RIAA made me download System of a Down's latest album!" "The MPAA made me download a camrip of X-Men 3!" Slashdot will continue to post vaguely pro-piracy articles such as this one, while ignoring its own Slashdot heroes like John Carmack (id Software was estimated to have lost millions of dollars when Doom 3 was leaked the weekend before its release date). Outside of the green and white bubble of this website, the rest of the world will continue to run on capitalism, the least bad economic system on Earth, and the antithesis to the pseudo-socialist worldview of "share everything and worry about the consequences later" that permeates the discussions.
Just my two cents.
"Sufferin' succotash."
Hah, already beat you.
I ran #gnuwarez on EFnet for a year or so. Zero-day Debian releases, FreeBSD -- you name it, I had a vast network of affiliate networks capable of getting it out to you. Mad greetz to the SourceForge guys.
Yahoo! Pipes are awesome. How awesome? http://pipes.yahoo.com/jesdynf/slashdot
Huh? If there was a market for a cheap/free photo editing tool, somebody would fill it. In fact, there are several lower cost (and free) photo editing tools made by small companies that sell to people who don't need/can't afford Photoshop. And *these* are the companies that get screwed over when people warez software.
Joe six-pack may not spend $600 on Photoshop, but he would probably buy a $19.95 alternative (or his buddy might show him where to find Gimp). But if he can just get the top-of-the-line product for free, why the hell would he bother trying anything else?
In short, it isn't Adobe taking the lose as much as the independent and Open Source developers.
Spell cheek you've failed me four the last thyme!
A code of conduct that says "using pirated business software in your business is wrong."
It just doesn't work in the non-western world.
Who cares, we couldn't afford it anyway is the usual answer....
http://www.maxineudall.com/2010/02/should-economists-be-sued-for-malpractice.html
What I mean is, if there was no way to pirate high price commercial software, Linux and other FOSS software would have gotten much much more widespread. Piracy for commercial use (i.e. companies making loads of money with pirated sw) are ones which probably would have the money to pay but they don't so that could be called potential sales (and _not_ lost sales), but piracy for home use is nothing else than free promotion and advertising - it's not just about buying the software, it's about people gathering knowledge of use of these software and the potential sells for them later on. I think they just make too much fuss about this whole sw piracy issue. I'm not saying they should charge less or null for their software, but claiming that every pirated copy is a lost sale is just stupid and ignorant.
And of course they know this all too well, since you can't sanely think these companies employ and rely on stupid people. But they just love to talk about big number of hypothetical fairytale lost sales money to impress sixpacks and politicians.
I am putting myself to the fullest possible use, which is all I can think that any conscious entity can ever hope to do.
In short, noone argues that copyright violation is illegal. But it is not universally unethical - it depends on where you stand on other issues.
You want a signature? You can't handle a signature!!
The real hypocrisy is when copyright law gets bashed into oblivion by people who fail to realize that the GPL is completely and totally unenforceable without it.
If the price I have to pay for the free distribution of creative content is knowing that someone can spin my work and make it theirs, I would pay it with a smile on my face and shake the person's hand afterward.
Part of creativity is not just creating something but also being able to modify anothers' work for the better.
In all actuality, the GPL is intended to keep people from greedily stealing someone else's work and forcing copyright on the derivative (and locking up the source). If there was no copyright to begin with, everything would be free and the GPL wouldn't be shattered, it would be rendered moot.
Have these losses been reported to the SEC? If they truly are losses, then the BSA members have an obligation to their shareholders to report these losses.
Copyrights, Patents, Trademarks: temporary loans from the Public Domain, not real property ("intellectual" or otherwise)