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Europe has biggest piracy losses
Computer Fraud & Security Bulletin
CAAST has increased its emphasis on litigation, as a result of complaints from companies that were using legitimate software and who felt unable to compete with those companies taking the unfair advantage of using software they had copied without paying for. Publishers say that if everyone pays the same price then normal competitive factors will keep prices as low as possible. In larger organizations, users sometimes resort to illegal copying simply because of the administrative difficulty of purchasing software. However, most software companies have simplified their licensing packages. A separate problem, included in the CAAST figures, is software bootlegging. This ranges from improper retailing of a product intended for sale with original manufacturers' equipment, to production of counterfeit software packages. Microsoft attempts to combat this with hologram labels on packages which are much more difficult to copy. On a positive note, more awareness of the illegal nature of copying led to a 5% decrease in piracy and software theft in Canada last year. As a weapon in the fight against piracy, education is more powerful than litigation.
Europe has biggest piracy losses In 1993, Europe saw the loss of turnover for software producers and distributive channels reach $4.9 billion. This was in spite of the percentage of piracy diminishing to 61%. On a worldwide scale, piracy has invoked losses of $12.8 billion, and of this, Europe, with its 38% global share, represents the biggest portion of would-be turnover. "Software piracy is still a sore point for the industry as it suffocates innovations and destroys incentive to create new programs", declared the president of the BSA, Robert Holleyman. "Strong laws to protect copyright and serious measures for putting these norms into practice are absolutely essential to guarantee an environment where program developers and editors can continue to create innovative products for the
2
August 1994
market to suit the ever-increasing needs of its consumers". In this context, Italy has achieved the most relevant results in the fight against piracy, reducing the percentage of illegal software by 36%, from 86% in 1992 to 50% in 1993. This i n c r e d i b l e r e d u c t i o n of the phenomenon is attributed to the diligence of the Italian State applying the law, confirmed by the police force in the country following the modifications introduced and incorporated by the EEC Directive on the Authors' Rights Law. "We are very pleased with the results obtained, which are also due to the close collaboration that has grown between software protection organizations and the Italian State, to weaken this phenomenon", added Giovanna Ceci, president of the BSA Marketing Task Force in Italy. "It is a question of the first important step in the fight against piracy, but there is still a long way to go. We hope that Italy continues to maintain high pressure from the police force against piracy in the future." On 25 October 1993, the US Senate passed a resolution praising the diligence shown by the Italian State in the fight against crime. "The critical factor in the fight against piracy is the State's commitment to legislate and put into effect strong laws on authors' rights", commented Evan Cox, European legal consultant for the BSA. "This factor is even more evident when you compare the trends in Italy and Spain. In 1992, both countries had an average of 86% illegal software. In 1993, in Italy the percentage fell to 50% whilst in Spain it rose to 88%. The Italian State put the EEC Directive into practice before the established date of 31 January 1992. 1993 was the year that brought about the repression of piracy cases. In contrast, the Spanish Government did not enforce this community law until January 1994, therefore leaving the software industry with a weak defence mechanism for all of 1993.
Silvano Ongetta
©1994 Elsevier Science Ltd
CAAST has increased its emphasis on litigation, as a result of complaints from companies that were using legitimate software and who felt unable to compete with those companies taking the unfair advantage of using software they had copied without paying for. Publishers say that if everyone pays the same price then normal competitive factors will keep prices as low as possible. In larger organizations, users sometimes resort to illegal copying simply because of the administrative difficulty of purchasing software. However, most software companies have simplified their licensing packages. A separate problem, included in the CAAST figures, is software bootlegging. This ranges from improper retailing of a product intended for sale with original manufacturers' equipment, to production of counterfeit software packages. Microsoft attempts to combat this with hologram labels on packages which are much more difficult to copy. On a positive note, more awareness of the illegal nature of copying led to a 5% decrease in piracy and software theft in Canada last year. As a weapon in the fight against piracy, education is more powerful than litigation.
Europe has biggest piracy losses In 1993, Europe saw the loss of turnover for software producers and distributive channels reach $4.9 billion. This was in spite of the percentage of piracy diminishing to 61%. On a worldwide scale, piracy has invoked losses of $12.8 billion, and of this, Europe, with its 38% global share, represents the biggest portion of would-be turnover. "Software piracy is still a sore point for the industry as it suffocates innovations and destroys incentive to create new programs", declared the president of the BSA, Robert Holleyman. "Strong laws to protect copyright and serious measures for putting these norms into practice are absolutely essential to guarantee an environment where program developers and editors can continue to create innovative products for the
2
August 1994
market to suit the ever-increasing needs of its consumers". In this context, Italy has achieved the most relevant results in the fight against piracy, reducing the percentage of illegal software by 36%, from 86% in 1992 to 50% in 1993. This i n c r e d i b l e r e d u c t i o n of the phenomenon is attributed to the diligence of the Italian State applying the law, confirmed by the police force in the country following the modifications introduced and incorporated by the EEC Directive on the Authors' Rights Law. "We are very pleased with the results obtained, which are also due to the close collaboration that has grown between software protection organizations and the Italian State, to weaken this phenomenon", added Giovanna Ceci, president of the BSA Marketing Task Force in Italy. "It is a question of the first important step in the fight against piracy, but there is still a long way to go. We hope that Italy continues to maintain high pressure from the police force against piracy in the future." On 25 October 1993, the US Senate passed a resolution praising the diligence shown by the Italian State in the fight against crime. "The critical factor in the fight against piracy is the State's commitment to legislate and put into effect strong laws on authors' rights", commented Evan Cox, European legal consultant for the BSA. "This factor is even more evident when you compare the trends in Italy and Spain. In 1992, both countries had an average of 86% illegal software. In 1993, in Italy the percentage fell to 50% whilst in Spain it rose to 88%. The Italian State put the EEC Directive into practice before the established date of 31 January 1992. 1993 was the year that brought about the repression of piracy cases. In contrast, the Spanish Government did not enforce this community law until January 1994, therefore leaving the software industry with a weak defence mechanism for all of 1993.
Silvano Ongetta
©1994 Elsevier Science Ltd