Less Pirated Software Brings Giant Economic Returns

2008/02/01,By Ginny Yang, China IP,[Copyright]

On January 22, 2008, the Business Software Alliance (BSA) issued a new report that in the next four years, if the software piracy rate in Asia decreases by 10%, there will be 435,000 new jobs, economic growth equaling USD 40 billion and USD 5 billion in taxes higher than the present prediction. If the PC software piracy rate in China is 10% lower, new employments, economic growth and tax revenue will be 355,000, USD 20.5 billion and USD 1.6 billion.

This is a report independently furnished by IDC. It shows that the IT industry has become an important driving force in the Asian economy. The year 2007 saw expenditure by the Asian Economies on IP products and services, including computers, peripheral equipment, network devices, and software packages of more than USD 231 billion. These funds help feed 348,000 IT enterprises, 5.5 million IT staffs, and help the government gain IT-related revenue of USD 167 billion.

The report also estimates that if the PC software piracy rate in the Asian region is lowered by 10% in 2011, the IT industry will make greater contributions to the Asian economy. Asia, including Russia, China and India, will reap gigantic economic returns.

In addition, the "Multiplier Effect" will accompany the reduction of the piracy rate. According to IDC's report, every US dollar spent on original software packages will result in 1.23 US dollars of expenditure on software installation, personnel training and maintenance by local manufacturers.

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