Netbook revolution fails to lower RP’s 69% software piracy

The rise of netbooks in the Philippines seems to have little impact on the country’s software piracy rate, which remained unchanged at 69 percent for the third straight year, a new study revealed Tuesday. The Global Software Piracy Study, now in its 7th year, was released by the Business Software Alliance (BSA). Research firm IDC undertook the survey on behalf of the BSA. The study tracked PC software piracy rates in more than 100 economies worldwide, including the Philippines. While the country’s piracy rate stayed at 69 percent, the survey noted that dollar losses caused by software piracy increased from $202 million in 2008 to $217 million in 2009. According to BSA Philippines consultant Bien Marquez, the higher revenue losses can be traced to the expansion of IT markets even if the piracy rate stayed at 69 percent. Despite the proliferation of netbooks, which normally come with legitimate software, it was not enough to significantly reduce the piracy rate, said Victor Lim, IDC vice president for Asia Pacific consulting operations. White-box PCs, which are often loaded with pirated software, are still the main source of ripped programs for a third of the market, according to BSA. In Asia Pacific, the software piracy rate fell from 61 percent in 2008 to 59 percent in 2009 but the losses from illegal software rose to over $16.5 billion. The region accounted for the highest dollar losses in the world from the use of unlicensed software. Asia Pacific economies with the highest piracy rates were Sri Lanka, Indonesia, Vietnam, and Pakistan. The United States, Japan, and Luxembourg continue to register the lowest piracy rates of economies surveyed (20, 21, and 21 percent, respectively). Marquez, a lawyer, said the BSA has been actively lobbying in the last few years in Congress for a pending amendment to the IP Code. “The IP Code was passed in 1998, so it is now way behind in terms of Internet and copyright laws," said Marquez. The current law is not clear on new issues such as temporary software copy and digital rights management or DRM. He said the study made it clear that there is still much to be done to bring down the country’s piracy rate. “Despite a stagnation in the software piracy rate, the BSA remains optimistic that the rate will be reduced as the Pilipinas Anti-Piracy Team and the support of the Intellectual Property Office of the Philippines, have been unwavering in terms of enforcement actions, as well as awareness creation," he said. In the study, IDC estimated that for every dollar of software sold in a market, another $3-$4 of revenue is generated for local service and distribution firms. A 2008 BSA/IDC study on the economic impact of reducing software piracy found that lowering the software piracy rate in Asia Pacific by 10 points over four years could create 435,000 new jobs, generate over $40 billion in economic growth, and over $5 billion in tax revenues. The 2009 BSA/IDC Global PC Software Piracy Study covered all software running on PCs, including desktops, laptops, ultra-portables, and netbooks. —Melvin G. Calimag/VS, GMANews.TV