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BSA 2010 Piracy Report: $58.8 Billion
Glyn Moody writes "The annual BSA report on software piracy is out, with even bigger numbers: 'The commercial value of software piracy grew 14 percent globally last year to a record total of $58.8 billion.' Yes, they're using the old 'commercial value' trick: 'The commercial value of pirated software is the value of unlicensed software installed in a given year, as if it had been sold in the market.' Except, of course, that the main reason users in developing countries — the main focus of the report — resort to piracy is because they can't afford Western-style pricing. It's also fun to see the BSA trotting out the old 'reducing piracy would generate lots of new jobs and taxes for local governments' — except that it doesn't, because the money not paid for software licences does not disappear, but is just spent elsewhere in the local economy."
Getting rid of the BSA would do wonders for local economies around the globe. If we didn't have this grandstanding of false piracy people could get on with their lives instead of watching as government lobbied by the BSA bends over for them and does their bidding, going directly against the desires of their constituents.
resort to piracy is because they can't afford Western-style pricing.
So that legitimizes taking someone else's work and not compensating them for it, right? Because the world runs on dreams and kindness and everything should just be given away.
Guess what, someone, usually dozens or hundreds of people, worked to produce the software and they want to be paid for their work. Just because you don't think the price is justified doesn't entitle you to take their work and not compensate them.
And yes, I'm using the word entitled because that is the overwhelming opinion on this site and others that people are somehow entitled to take something which isn't theirs and not have to pay a dime for it.
Maybe you think it's funny or sticking it to the man, but you wouldn't be laughing if it was your stuff being taken and you didn't get paid for it.
And don't bother bringing up how software isn't "real" goods or services. That the cost to produce it is negligible. There are still ongoing costs associated with producing and distributing the software, even via downloads. Or do you think the servers are running on puppy farts?
While the BSA numbers are certainly overstated, the fact remains people are stealing someone else's work and trying to justify that theft by claiming, "But they live in a poor country and can't afford it so it's ok to steal" is bullshit.
You want to code and give your stuff away, that's fine. It's your stuff. Don't try claiming what you think should be done with your stuff applies to someone else's stuff.
We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
A lot of the copying of commercial software is done by people who can't afford it. You'll get students that want to play with 3DSMax or something but can't really swing the $3,500 asking price so they'll download it. That is NOT a lost sale, if it was impossible to copy, they'd simply do without because they haven't the money.
I'm not saying that copying doesn't result in some lost revenue. I'm quite sure that there are sales that would be made if copying was impossible, but aren't because it is. However it is not 100% of copied software, not even close.
I'd imagine the more expensive the software in question, the lower the loss overall. For a $1 phone app, sure I can believe that a significant number of people would buy it, if copying it wasn't possible. For a multi-thousand dollar software package? I bet it is extremely low. The places that can afford it don't mind and want to be legit, the people that copy can't afford it period.
This BS inflated figures don't help anyone, particularly because I think people are starting to wise up. They are realizing that if the numbers really were as big as the anti-piracy orgs want to claim, it would be a real problem.
I'd like to see Ballmer's previous threats to crank WGA and OGA to 11.
I'd love to see DRM schemes that turn computers with illegitimate copies of software into smoking heaps.
It'll never happen, though. Copyright infringement is too important to the industry incumbents to actually stop it. File sharing locks out alternatives, both commercial and free. Why pay for an alternative when you can crack the market leader for free? If the world suddenly discovered there was software besides Windows, Microsoft Office, Autocad, and Photoshop, there would be more competition.
Ending piracy would end much of the market distortion that favors the incumbents at the expense of the rest.
Do it, guys, if you have any balls.
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BMO
Bastiat himself, apply the parable of the broken window in a different way. Suppose it was discovered that the little boy was actually hired by the glazier, and paid a franc for every window he broke. Suddenly the same act would be regarded as theft: the glazier was breaking windows in order to force people to hire his services. Yet the facts observed by the onlookers remain true: the glazier benefits from the business at the expense of the baker, the cobbler, and so on. Bastiat argues that people actually do endorse activities which are morally equivalent to the glazier hiring a boy to break windows for him: Whence we arrive at this unexpected conclusion: "Society loses the value of things which are uselessly destroyed;" and we must assent to a maxim which will make the hair of protectionists stand on end—To break, to spoil, to waste, is not to encourage national labour; or, more briefly, "destruction is not profit." What will you say, Moniteur Industriel[5]—what will you say, disciples of good M. F. Chamans, who has calculated with so much precision how much trade would gain by the burning of Paris, from the number of houses it would be necessary to rebuild?
If I write a piece of software and it gets 100 paying users and zero pirates, I'm no better off than if I get 100 paying users and 1000 pirates. Count the paying users, not the pirates.
A few years back, when last I looked, the BSAA (local Australian tentacle/surrogate of the BSA) were treating each PC sold as representing a certain quantity of licensed software that would be in use. They then compared this with some software license sales figures (the accuracy of which is another question), and if there were more deemed licenses in use through new PC sales than there were actual license sales, (guess what! there were!!) then that was their damning evidence that teh piratez were stealing Christmas.
This meant that some 40 staff desktops and 120 teaching laboratory computers at my workplace (a university CS department) which were bought with no OS license and installed with Debian, actually contributed to the BSAA's frothy-mouthed argument that rampant piracy was costing Australia many quality local jobs employing drones to process purchases of software produced overseas by US companies... that incidentally booked most of their profits via subsidiaries based in Ireland, thanks to its low low rate of corporate tax at that time.
So there you have it:
- I am a pirate
- my work was full of piracy
- you probably are a pirate too
because I/they/you have the temerity to buy machines with no OS to run free operating systems and free applications.
-Snorbert, somewhere in the antipodes
>If I write a piece of software and it gets 100 paying users and zero pirates, I'm no better off than if I get 100 paying users and 1000 pirates. Count the paying users, not the pirates.
If you write a piece of software and you get 100 paying customers and 1000 warez kiddies, you have 1000 future customers when they need to buy something for work.
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BMO
There is absolutely no corollation between software piracy and jobs. While lesser minds will easily be fooled into this argument, those who are more intelligent will see right through this. In fact, software piracy and jobs are totally unrelated which makes this "study" laughable. If anything, by vigorously enforcing copyright and licensing, there will be fewer copies of said software to support meaning fewer jobs for skilled technicians. This basically takes the BSA argument and nullifies it. As an open source advocate, I do not condone software piracy at all but these efforts to fight it are largely misguided and the dues that the software industry pays the BSA would be better spent elsewhere. An entire industry has grown up around software piracy so as much as they preach against it, the lawyers that specialize in this kind of thing depend upon it for their livelihood. This is what makes the BSA so absolutely absurd. We are seeing another rehash of the sue for windfall profits and hide behind a non-profit organizational umbrella a la RIAA and MPAA. The BSA, RIAA, and MPAA should be required by law to show their corporate incomes and make them publicly available. They are tax-exempt, their lawyers are reaping the benefits, and everyone else suffers under stifled innovation.
And yet their calculation of how much piracy cost is still inaccurate and arbitrary at best. If Adobe decided that Photoshop should cost $150,000 and I decided to pirate it, it doesn't mean they lost $150,000 in software sales. Simply because I don't even make that much and could never afford the product at that price no matter what.
But what is also missing from the equation is the benefit Adobe gains if I *do* pirate their software. If I am a home user, and I pirate Photoshop, and I learn the software and become quite good with it, and if I land a job doing graphics, my employer will ask what software I want to use. I will more likely say "Photoshop" because that is what I know. Thus, in that instance, they actually got a sale they probably wouldn't have otherwise, because I would have just learned Gimp or some other free graphics editor, and just suggested to use that instead.
Sound impossible? I just described my situation exactly.
"They said I probly shouldn't fly with just one eye," "I am Bender. Please insert girder."