p2pnet news view P2P:- “The IDC methodology calculates piracy on all software that runs on personal computers, including desktops, portables, and the new netbooks. That software includes operating systems, systems software such as databases and security packages, and applications software such as office automation packages, finance and tax packages, PC computer games, and industry-specific applications.”

The statement comes in an IDC explanation included in the Business Software Alliance’s 6th annual BSA-IDC Global Software ’study’.

“The Economist has questioned the veracity (to be polite about it) of BSA statements which claimed losses down to counterfeits had increased from $29 billion to $33 billion,” p2pnet posted four years back, going on:

“We’d previously believed the BSA (Business Software Alliance) used the same Number Dreamers employed by the movie and record label cartels to produced loss and other statistics. But No, said The Economist in BSA or just BS?,” continuing »»»

The association’s figures rely on sample data that may not be representative, assumptions about the average amount of software on PCs and, for some countries, guesses rather than hard data, it said. Moreover, the figures are presented in an exaggerated way by the BSA and International Data Corporation (IDC), a research firm that conducts the study. They dubiously presume that each piece of software pirated equals a direct loss of revenue to software firms. [The argument is similar to the false Big Music claim that music shared equals sales lost.]

To derive its piracy rate, IDC estimates the average amount of software that is installed on a PC per country, using data from surveys, interviews and other studies. That figure is then reduced by the known quantity of software sold per country-a calculation in which IDC specialises. The result: a (supposed) amount of piracy per country. Multiplying that figure by the revenue from legitimate sales thus yields the retail value of the unpaid-for software. This, IDC and BSA claim, equals the amount of lost revenue.

“Sir!” steamed BSA spokeslady Beth Scott in response.

Your article on software piracy was extreme, misleading and irresponsible (`BSA or just BS?`, May 21st). The headline was particularly offensive. The implication that an industry would purposely inflate the rate of piracy and its impact to suit its political aims is ridiculous.

Perish the thought, eh?

Now, according to the latest fluff piece, in 2008, “for every $100 of legitimate software sold, another $69 was pirated” and, “an industry group to call Tuesday for tougher copyright laws to thwart levels of theft far above those of other advanced economies,” says the Canwest News Service, adding:

“Although the volume of pirated software in Canada fell slightly, to 32 from 33 per cent, and while Canada remains within the top 25 countries with the lowest piracy rates, the country continues to lag others like the U.S. and Japan, which have the lowest rates at 20 and 21 per cent, respectively …”

No need to stay tuned.

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May, 2009

p2pnet – The Economist angers BSA, June 15, 2005
The Economist – Dodgy software piracy data, May 19, 2005
Canwest News Service – Software piracy cost economy $1.2 billion in 2008, study says, May 12, 2009