Australia falls behind in software piracy fight

Australia has experienced a small increase in the use of pirated software in 2004, keeping the overall piracy rate well above comparable nations, according to a survey published by the Business Software Association of Australia (BSAA).

The BSAA -- affiliated with global body the Business Software Alliance (BSA) and backed by software companies such as Microsoft, Symantec and Apple -- said 32 percent of software used in Australia in 2004 was pirated, up from 31 percent the previous year. The survey -- conducted by International Data Corp -- found piracy slid by one percentage point in the United States, United Kingdom and New Zealand.

Jim Macnamara, chairman of the BSAA, said software piracy cost industry AU$545 million.

"While nearly a third of all software used in this country is pirated it will continue to stifle the development of our local IT industry... Software piracy costs local developers as well as international manufacturers, reduces tax revenue and costs jobs," said Macnamara.

According to the study, during 2004, software piracy rates in New Zealand, the United States and the United Kingdom dropped to 21 percent, 23 percent and 27 percent respectively.

"It is significant that Australia's software piracy rate continues to be substantially higher than other developed countries," said Macnamara.

However, the report's findings have been questioned by Foad Fadaghi, research director of the ICT Practice at Frost & Sullivan Australia. Fadaghi said the survey assumed that any software that has been pirated would otherwise have been bought legitimately, which is incorrect.

"You can not assume that all those that pirate software have the means to purchase the software," said Fadaghi.

Additionally, Fadaghi said that software vendors were not sensitive enough to the local currency when setting prices.

"In the Australian market, I believe software piracy is driven by price sensitivity. A lot of software vendors are converting [prices] from US dollars and the perception in this market is that they are gouging too much into the wallet," said Fadaghi, who was quick to point out that price is not a justification for using illegal software. "That is not a justification for piracy but it certainly is a driver."

Advertisement

Talkback 5 comments

    What ever happened to the 'try ...Anonymous -- 18/05/05

    What ever happened to the 'try before you buy' option ? a roadtest for a car is the norm considering what it costs.. why cant the same be said about a software investment ?

    people do not have an opportunity to test these programs to see if they suit their needs.. and this causes a great deal of grief for both the consumer and distributors ( stores )..

    Have you ever said no to the microsoft eula and tried to take it back to the store ?
    " Sorry, the packaging is open - no refund or exchange on software "..

    there's also the " Potential Loss " of so many millions of dollars.. these people would not purchase the gear in the first place, what makes you think that developers/software houses are loosing out ? how many 16 year olds need autocad or could use it.. ?

    Piracy is not condoned because of how it's depriving the rightful owners of their share.. why dont they get smart ? reduce the price - make it affordable so people wouldnt look at the pirate option.. or offer a try before you buy ?
    It's been done with MYOB and Quicken.. seemed to work quite well..

    of course you can try before y ...Anonymous -- 18/05/05

    of course you can try before you buy...use an evaluation copy (time bobmbed) or as comes with a Technet or MSDN subscription. If you are happy it meets your needs you buy it or licence it accordingly. Doesn't seem so hard to me.

    Having and using proprietary s ...Anonymous -- 18/05/05

    Having and using proprietary software like Microsoft etc has now become officially a high-risk game.

    As of 3 weeks ago, directors and business managers are now facing jail time for breaching proprietary software licences.

    Next time you get a chance, read through your EULA. You will see how easy it is to actually breach that licence. No, you don't only breach it by illegally making copies.

    I'm starting to suggest to my clients that they look at other software options, such as open source, because none of that software has such onerous risks nor attached jail terms.

    Please enlighten us Greg about ...Anonymous -- 20/05/05

    Please enlighten us Greg about how you can breach the software license on a "legal" version of the software ?

    It's quite simple - buy a license for each individual user or if you are a large company purchase a corporate license with accurate records detailing your installed userbase.

    Of course incompetent CTO's and IT managers may have trouble with this concept.

    Australia falls behind in software piracy fight Anonymous -- 15/11/05

    It is true that software piracy as well as digital music and video piracy is a problem world wide. I feel that a good point is made by stating that high prices do encourage some people to pirate software and other media. Do you think that peer to peer programs also have increased the piracy problem? Not only can a person download and play their favorite game for free, but they can also let thousands of others download and play it for free. Kazaa last time i used it now offers some programs, music and video at a small cost for people to download but there is still quite a lot of things that can be gotten for free. Not finding what i was looking for, a friend pointed me in the direction of a bit-torrent client and a certain website that catalogs torrent sources for this same type of pirated material. I feel that the ease at wich these pirated media can be transmitted not only encourages piracy but in some cases such as with Kazaa they are building a client base of customers to buy digital media from them. If it weren't for beginning as a piracy free for all where would Kazaa be commercially?

Add your opinion

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • Suzanne Tindal Sick of broken tender sites
    Some of the state governments desperately need to invest in more user-friendly tender sites so that looking for information on government tenders doesn't have to be a game of blind man's bluff.
  • Array Cyberwar: What is it good for?
    In this week's episode, Cyberwar. What is Australia's place in the world of digital warfare? What are the implications for the NBN?
  • Array Is wholesale-only backhaul just a pipedream?
    The potential acquisition of Pipe Networks by SP Telemedia has raised the question about whether vertically integrated backhaul providers will mean higher wholesale prices for ISP customers.
  • More blogs »

Tags

Back to top

Featured