Study: Reduced piracy would create millions of jobs

IDG News Service - Reducing software piracy by just 10 percentage points worldwide would generate 1.5 million jobs and add $400 billion to the world economy, according to a study released today by the Business Software Alliance (BSA) and IDC.
The BSA, made up of software vendors such as Microsoft Corp., IBM and Apple Computer Inc., pegs the amount of software programs pirated globally at 40%. The IDC study, commissioned by the BSA, says that by reducing that number to 30%, nations could collectively add $64 billion to their tax coffers.
In the study, Framingham, Mass.-based IDC assessed the impact of IT on 57 countries that make up 98% of the world's IT market. According to the BSA, about two-thirds of those 57 countries have reduced piracy by 10 percentage points since 1996, making another 10-point drop a "realistic and achievable goal." A drop of one percentage point would raise $6 billion in new tax revenues, according to the study.
"Strong intellectual property protection spurs creativity, which opens new opportunities for businesses, governments and workers," said Robert Holleyman, president and CEO of the BSA, in a statement released before the official announcement. "When local entrepreneurs have a legitimate way to sell their innovations and make a profit from their programming, they can grow their own businesses and hire more people. That, in turn, drives up spending in the local economy and increases tax revenues that help fund important public sectors."
The IDC study claims China's IT sector could grow by five times in the space of four years with a 10-point drop in its 92% piracy rate. A 10-point drop in the U.S. would add $150 billion to its gross domestic product.
The study argues that consumers benefit when piracy is reduced because pirated products can be defective or lack security features. The study doesn't look at any potential negative impact to consumers, such as paying higher prices for nonpirated software.