Report: 1 in 3 Software Installs Pirated

Software piracy worldwide increased five percent last year, costing the industry some $34 billion during 2005, research firm IDC reported on Tuesday. According to the study commissioned for the Business Software Alliance, one out of every three copies of software in 2005 was pirated.

The firm found that rates of piracy were fluctuating from country to country, but overall the global rate had remained pretty much steady over the past two years. The difference in the value had to do with more PCs and software being shipped in 2005 than in previous years, IDC explained.

Piracy in hotspots such as China, India and Russia have decreased, the study found -- likely due to the focus the industry has placed on curbing the problem in these regions. However, in 19 other countries, piracy has increased.

Countries with the lowest incidence of piracy included the United States, with a piracy rate of 21 percent; New Zealand, 23 percent; and Austria and Finland, 26 percent. Highest were Vietnam and Zimbabwe, with piracy approaching 90 percent; Indonesia, 87 percent; and China and Pakistan at 86 percent.

Even though it had the lowest rate of piracy, the United States still accounted for the most monetary losses amounting to nearly $6.9 billion. China came in a distant second with $3.9 billion.

"The progress made in reducing PC software piracy in several emerging markets provides some encouragement; however, much more needs to be done," said BSA President and CEO Robert Holleyman.

"With more than one out of every three copies of PC software obtained illegally, piracy continues to threaten the future of software innovation, resulting in lost jobs and tax revenues."