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THE rate
of software piracy in the Philippines has decreased by 2
percent, from 71 percent in 2006 to 69 percent in 2007,
but this didn’t stop losses due to piracy from
increasing to $147 million from $119 million.
This was
according to the 5th Annual Business Software Alliance (BSA)/International
Data Corp. (IDC) Global PC Software Piracy 2006-2007
Study released Wednesday.
“This
report shows that we are making some progress in the
Philippines in the battle against software piracy. But
the fight continues as the rates remain high,” said
Celina Conti, chairman of BSA-Philippines Committee in a
statement.
However,
Jeffery J. Hardee, vice president and regional director
of BSA Asia, attributed the software industry’s losses,
despite the decrease in the rate of software piracy, to
the weakening of the US dollar. Because of the rapid
increase of the personal-computer (PC) market in the
Philippines, the percentage may seem smaller, hence the
decrease. On the exchange rate, he said the “weakening”
of the dollar had, in fact, increased the amount of
losses as well, but added that he was happy to see the
“progress.”
According to the report, as a result of the rapid growth
of the PC market coupled with the value of the US dollar
falling nearly 7 percent against other currencies, total
worldwide losses from software piracy rose from $8
billion to nearly $48 billion worldwide. It added that
worldwide, for every two dollars of software bought
legitimately, one dollar’s worth was obtained illegally,
while in countries with a higher rate of piracy (over 75
percent), only 7 cents is legitimately spent for every
dollar.
The
report added that the PC market grew much faster in
higher-piracy countries and stressed the harm of
software piracy to their economies, noting that most of
this growth came from the consumer and small business
sectors. The Philippines registered a 14-percent growth
in the consumer PC sector and 28 percent in the business
sector.
On
piracy across the region, Asia Pacific alone has a
59-percent rate of software piracy in 2007—up from 55
percent in 2006, translating to losses of $14.09 billion
in 2007 from $11.7 billion in 2006.
In the
ranking of the rate of piracy in Asia-Pacific,
Bangladesh tops the list with 92 percent (it also topped
the list in 2006), and New Zealand had the lowest rate
at 22 percent; the
Philippines
hovers near the middle at 69 percent.
The
report explained the economic impact of piracy: A
10-percentage- point drop in PC software piracy rate
between 2008 and 2012 could result in 500,000 new jobs
and more than $100 billion in new revenues. The report
said the IT sector in countries with lower piracy rates
contribute a larger proportion to GDP.
However,
even under these circumstances, the BSA sees the rate of
piracy declining in the coming years, stating the global
trend in which piracy rates have dropped in most
countries.
In the
Philippines, agencies such as the Pilipinas Antipiracy
Team, the National Bureau of Investigation Intellectual
Property Rights Division and the Optical Media Board are
helping the fight against piracy. There’s also the
pending World Intellectual Property Organization which
the BSA hopes will be ratified soon.
“We are
hoping this year that the members of legislation will
adapt hasten the implementation of Wipo,” He said.
The BSA
is a nonprofit organization present in over 80
countries, promoting a safe and digital world. IDC is
the premier global provider of market intelligence,
advisory services and events for the IT,
telecommunications, and consumer technology markets.
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