Reducing software piracy creates a ripple effect throughout the economy, generating new spending on related information technology (IT) services and distribution. That spending, in turn, creates jobs and delivers new tax revenues — and the faster the reduction in software piracy, the greater the returns. These are among the findings of a new study produced by the Business Software Alliance (BSA) and IDC, the leading global IT market research and forecasting firm, which documents the impact of reducing PC software piracy rates by 10 percentage points in 42 countries.
"The Economic Benefits of Reducing Software Piracy" finds that reducing the 36 percent personal computer (PC) software piracy rate in the UAE by 10 percentage points over four years would create 841 high-tech jobs, $ 425 million in new economic activity, and $ 17 million in new taxes by 2013, with 65 percent of those benefits expected to remain in the local economy. In addition, the study finds that the benefits are compounded by reducing software theft at a faster rate: If UAE were to reduce piracy by 10 points over the next two years instead of four, it would boost the economic activity and tax gains by 33 percent and 31 percent respectively.
"Software Anti-piracy programmes are worthwhile investments that deliver significant economic returns within a relatively short span of time. They complement our goal of establishing a safe and enduring digital society and advance our economic diversification, as software has become a vital tool across all industries. This study's results justify the adoption of more effective IPR policies and strategies for the IT domain," added Mohammed Bin Abdulaziz Alshihhi, Director General, UAE Ministry of Economy.
"Reducing software piracy is an opportunity to inject much-needed stimulus into the economy," said Jawad Al Redha Co-Chairman, Business Software Alliance, Gulf Region. "Because selling, servicing and supporting software creates demand for related distribution and services, the impact of software piracy reaches beyond software publishers, starving local distributors and service providers of spending that creates jobs and generates more tax revenues, boosting the local economy."
