1. Software Piracy in Poland Industry losses and economic impact
Georg Herrnleben
Director, Central & Eastern Europe
BSA

2. The IDC studies
BSA regularly commisions and co-authors two studies executed by research analyst IDC on the scope, development and effects of software piracy worldwide. These studies – the IDC Piracy Study and the IDC Impact Study – cover some 80 countries in detail.

3. Methodology of the IDC Piracy study
The percentage of all software used that is not licenced is here called the piracy rate. The market value of the software pirated is labeled as piracy damages. In 2006, the global piracy rate was 35%, while the damages were 39,6 billion US-dollars (USD).
In short, both the rate and damage are calculated by measuring the demand for software as estimated by the number of new PCs sold in a given country against the amount of software licensed, while correcting for local differences such as open source usage, amount of software installed on the average PC and so on.

4. Poland: piracy rate development
58%
59%
57% 0% 5%
10%
15%
20%
25%
30%
35%
40%
45%
2003
2004
2005
2006
Piracy rate

5. Poland: piracy damages development
301
379
388
484
100
200
300
400
500
2003
2004
2005
2006
Damages in
million $

6. Software Piracy in Europe: EU
25%
26%
27%
28%
29%
36%
39%
42%
43%
45%
46%
51%
56%
57%
61% 0%
10%
20%
30%
40%
50%
60%
70%
Denmark
Austria
Sweden
Switzerland
Finland UK
Belgium
Germany
Netherlands
Norway
Ireland
Czech Rep.
Hungary
Portugal
France
Spain
Italy
Latvia
Poland
Greece

7. Software Piracy in Europe: Non - EU
84%
80%
69%
55%
29%
26% 0%
10%
20%
30%
40%
50%
60%
70%
90%
Ukraine
Russia
Romania
Bulgaria
Croatia
Norway
Switzerland

8. Damages in Europe (EU) 484 3000 2500 2000 1500 1000 500 USD millions
500
1000
1500
2000
2500
3000
France
Germany UK
Italy
Spain
Poland
Netherlands
Switzerland
Sweden
Belgium
Denmark
Norway
Greece
Finland
Czech Rep.
Austria
Portugal
Hungary
Ireland
Latvia
484

9. European overview
On a pan-European scale, software piracy is widespread especially in southern European countries, while the Nordics, central Europe and the UK have been among the most compliant in recent years. A continuing positive development in the EU accession states has led to a situation where the rates in Hungary (42%) and the Czech Republic (39%) are now lower than those in France (45%) or Italy (51%).

10. Worldwide situation Asia/Pac. Western Europe N. America CEE Lat.
Middle
East/Africa
Piracy Rate
Damages
55%/11,6 bn $
34%/10,6 bn $
22%/8,1 bn $
68%/4,1 bn $
66%/3,1 bn $
60%/2 bn $

11. Software piracy Study: scope and damage
Global study of rate of unlicensed software in use
Worldwide losses: 39,6 billion USD
highest overall losses: USA (7,3 bn. $), China (5,4 bn.), France (2,6 bn.)
Piracy worldwide: 35%
Lowest rates: USA (21%), New Zealand (22%), Japan, Denmark (25%)
trouble spots: Russia (80%, 2,2 bn. $), China (82 %, 5,4 bn $), Armenia (95%, 8 million $)
General trend: low piracy rate, established software & IT-industry

12. IDC Impact Study : Expanding the frontiers of our digital future
Analysis of IT-industries in various countries
Prognosis of development until 2011
Scenario: 10 percent reduction of software piracy rates

13. Poland until 2009 in 2007: 8,1 billion USD revenue in the IT-Industy
IT employees
2,8 billion USD IT tax revenue
2011 without reduction of piracy rate
12,2 billion USD revenue in the IT industry
IT employees
4,2 billion USD IT tax revenue
Piracy rate of 57 % causes annual revenue
losses of 484 million dollars.

14. Economic impact of reduced piracy rate in Poland
Reduction of 2,5 % annually would mean:
1.900 additional jobs ( in total)
110 million dollars additional tax revenue
725 million USD additional IT revenue

15. Thank you More information at www.bsa.org