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Jan 17 2009 - Software Group Concerned About Possible Increase in Piracy Driven by Economic Downturn.
Washington, DC – January 15, 2008 In 2008, the Business Software Alliance (BSA) paid a total of $136,100 in rewards to 42 individuals for verifiable tips about software piracy.
The global software industry group reported the full-year payout numbers for its “Know it, Report it, Reward it” program, under which individuals who provide qualified reports of software piracy – that is, the use of illegally copied software – are eligible to receive up to $1 million in cash rewards.
Interestingly, despite the opportunity to receive the cash rewards, many of BSA’s informants opted out of the reward program. In an informal survey conducted by the BSA, many cited their motivation as simply to “do the right thing.”
“BSA’s $1 million reward program has helped raise awareness about the prevalence and dangers of software piracy,” said BSA Vice President of Anti-Piracy and General Counsel Neil MacBride. “The risks of piracy include reduced computer performance, potential investigations and litigation, significant financial penalties, and security breaches in business networks.”
Anyone who has information about possible software piracy can report it securely and confidentially via BSA’s online reporting form at www.nopiracy.com, or via BSA’s toll free hotline at 1-888-NO PIRACY. Of those who reported illegal software use in 2008, nearly 90 percent used BSA’s online reporting form, while the remainder submitted reports via the toll-free hotline.
The Temptation to Cut Corners in a Recession
While the BSA receives a steady stream of software piracy tips year in and year out, the group anticipates there may be an increase in 2009 due to the economic downturn.
“When business is down and IT budgets are stretched thin, some managers may be tempted to cut corners, leading to increased use of unlicensed software in their businesses,” explained MacBride. “This is a terrible mistake because in the long run, companies stand to lose more money from being caught than they saved by installing unauthorized copies of software. Further, unlicensed software may increase a business’ exposure to dangers such as viruses and malware. Experience shows it is better to obey the law and employ Software Asset Management (SAM) programs to derive the most value from their software purchases.”
Corporate IT budgets are likely to be tight in the coming year. According to the IDC research firm, IT spending in 2009 will grow by less than 1 percent in the US (down from a forecasted 4.2 percent) and by only 2.6 percent worldwide (down from a forecasted 5.9 percent). Forrester Research predicts growth of 1.6 percent in the US in 2009, down from their previous forecast of 6.1 percent.
There have already been signs of a possible increase in online piracy during the past year. During the second half of 2008, the BSA asked Internet auction site providers such as eBay to take down more than 20,832 auctions (up 67% from 2007) involving 170,617 software products (up 92% from 2007) worth a combined $84,777,986. During the same period, BSA issued more than 71,982 takedown notices to “BitTorrent” sites regarding peer-to-peer files that were being used by as many as 795,500 people to download software worth an estimated $500,862,366. Takedown notices aimed at other Internet sources of pirated software reached a record 930,271 in the period.
As the voice of the world’s commercial software industry, BSA works to raise awareness of software piracy and to help businesses avoid the financial, technical, and legal risks related to it. On www.bsa.org, the group offers tools and resources to help companies self-diagnose and fix potential piracy problems. BSA also is working with the US Small Business Administration to educate up to 100,000 small businesses on how to purchase safe and legal software and develop a smart Software Asset Management (SAM) program. In that regard, BSA has developed SAM Advantage, a new, world-class approach that offers IT managers and service providers an easier way to reap the benefits of SAM.
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