The Business Software Alliance has released its 10th annual study of the prevalence of illicit software, worldwide. It says that in 2003 almost $80 billion worth of software was installed, of which $50 billion was paid for, a piracy rate of 36%. Lowest rate was in the U.S. and Canada - 23%. Highest in Eastern Europe - 71%.

For the first time, BSA included software for personal use as well as business use in the survey.

It is sometimes argued that the losses from software piracy are not real because many people who will take software for free would not be willing to pay money for it, and would not have been customers. This is true, to some degree, but another perspective is that if all the software had been paid for, prices could have been reduced by one-third, which would have brought it within the financial reach of even more people.

The pirates are not just cheating the producers; they are cheating their fellow consumers, who must support their free riding.

posted by James DeLong @ 4:07 PM | General

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