eMarketer reports that the annual “Global PC Software Piracy Study” just released by the Business Software Alliance and fielded by IDC says that 35% of the packaged software installed on personal computers (PCs) worldwide in 2005 was illegal, and it accounted for a staggering $34 billion in global losses due to software piracy, an increase of $1.6 billion over 2004.

But it’s not all bad news. Piracy rates decreased moderately in about half of the 97 countries covered, and increased in only 19. “The good news is that a combination of education, enforcement and policy efforts are beginning to pay off in emerging economies such as China, Russia and India and in Central/Eastern Europe and the Middle East & Africa, where software piracy rates are beginning to fall.”

Russia saw a four point drop in its PC software piracy rate while India’s piracy rate declined two points. China, with one of the fastest growing IT markets in the world, dropped four points between 2004 and 2005.

The countries with the highest piracy rates were Vietnam, Zimbabwe, Indonesia, China and Pakistan, all over 86%. The countries with the lowest piracy rates were the United States (21%), New Zealand (23%), Austria (26%) and Finland (26%).

Source: “Software Piracy Costs $34 Billion,” eMarketer 05/31/06.

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