Study: Slowing Software Piracy would Create 500,000 Jobs
Study: Slowing Software Piracy would Create 500,000 Jobs
Posted 09/17/2010 at 5:43am
| by Paul Lilly
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The Business Software Alliance has an easy way to stimulate the economy, all the government has to do is curb software piracy. In a study titled "The Economic Benefits of Reducing Software Piracy," (PDF) the BSA contends that reducing the piracy rate for PC software by 10 percentage points -- or 2.5 points per year for four years -- would create $142 billion in new economic activity, generate $32 billion in new tax revenues, and create half a million new high-tech jobs by 2013.
"The impact of software piracy goes beyond revenues lost to the software industry, starving local software distributors and service providers of spending that creates jobs and generates much-needed tax revenues for governments around the world," the BSA writes in its report.
The BSA claims that curbing piracy would have the reverse effect, stimulating the entire IT economy. What's more, 80 percent of the benefits of cutting down on stolen PC software would accrue to local economies, and in some cases more than 90 percent, according to the study.
Image Credit: pcadvisor.co.uk
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BeEazy10
September 22, 2010 at 10:41pm
Blame it on the economy, there finding every excuse to get money out of people. It seems like after the whole "The Hurt Locker" lawsuit, it seem like piracy been getting slap hard or is it just me, i know they been after piracy for a while, but this time around there going all out.
lilburtonboy7489
September 18, 2010 at 7:39am
This is hilarious. I thought the income identity in economics was pretty much accepted now. If someone chooses to pirate a video game, the gaming industry loses money, jobs, etc.. That's true. But the person who pirated the game has that income they would have spent on the game and will use it on something else, such as clothing, glassses, food, etc..., so those sectors in the economy gain from pirating.
The BSA should probably stop trying to act like economists, or at least hire some real ones.
Sediket
September 19, 2010 at 6:26pm
Nice rebuttal.
and seriously a professional company does an in-depth study on a subject that is presented to the world as a legitimate study and one schmuck just disagrees and bashes the study because he probably likes to download movies/games/music without paying for it.
Moron
BeEazy10
September 23, 2010 at 8:07am
Just think about it in general, think about that companies that work from home, app developer etc. Professional company have the money for the software you're a "MORON" for thinking that i was basically talking about a "Professional company". Why would they want to hurt there company pirating?
BeEazy10
September 17, 2010 at 11:37pm
A Lot of companies pirate software because of the price tag on that particular software, so if piracy was to stop for one year, how many program, movie, game y'all think would be develop and that one year? It would some what be like rescission a lot of people loosing job just for there company can buy 100 license.
tornato7
September 17, 2010 at 3:37pm
Stopping software piracy wouldn't help. People pirate things because they can't afford them or don;t want to waste the money to buy photoshop for $800. 99.9% of pirates wouldn't get the software if they couldn't get it for free.
Mighty BOB!
September 17, 2010 at 3:15pm
Self-serving study is self-serving.
As aviaggio pointed out, it easily goes the other way as well.
Nimrod
September 17, 2010 at 3:08pm
Did it take into account the huge number of businesses that religh on pirated software to maintain their business? Did the study take into account the fact that the study is bull shit?
aviaggio
September 17, 2010 at 11:23am
OK, let's say a small business has 100 computers, each running a pirated copy of Office. That's $30,000 they didn't have to spend that year just on Office, which allowed them to hire someone instead. So clearly, pirating software strengthens local businesses and fosters employment. Just think of how many jobs could be created if businesses didn't have to spend so much money on overpriced software.
See BSA, you've got it all wrong. I can make "studies" that say anything I want them to say too. Asshats.
Biceps
September 17, 2010 at 6:19pm
OR that business could just download Open Office for FREE. And then they would have a capable productivity suite and they wouldn't have to pay anyone and they would be within the law. Same goes for the comment above about Photoshop... just download GIMP or another very capable open source photo editing program.
I buy all of my software or I get open source alternatives to those I can't afford. I somehow make it through life. Excuses people give for pirating are just excuses for a lack of creativity or being plain greedy in 99.999999% of the cases. Open source software exists because there are people out there who believe that important software should be free... so they make it and give it away. Use it.
That said, I don't believe this survey for a heartbeat, the numbers are much too large.
aviaggio
September 17, 2010 at 11:09pm
OK then, so instead of using pirated copies of Office they switch over to Open Office. Who is going to pay for that deployment? Training? Downtime? You just can't switch an entire company to a new software package like you do at home.
But let's, for shits and giggles, ignore that part. Ok then, the company is magically switched over to Open Office and is now legal. But wait... Microsoft isn't getting any money this way either. And wow, the people that work at this company are so impressed with how well the FREE Open Office works they decide they're not going to ever buy MS Office for home. Not only that, but they're gonna tell all their friends and relatives, who in turn also stop buying MS Office.
So you see how not allowing piracy actually hurts the software industry?
Aren't theoreticals wonderful?
Biceps
September 18, 2010 at 10:02pm
Dude, are you actually smoking crack as you sit in front of your computer? What you wrote above is the most asinine thing I have read all week. You make no sense.
tri8gman
September 17, 2010 at 7:38pm
You did forget to mention ignorance. How many people could you ask at random for an alternative to MS Office? "WordPerfect?" is probably the best you'll get out of most people.
JohnP
September 17, 2010 at 11:33am
I keep ragging on Paul trotting out these bogus "studies" by companies that depend on making people nervous so that they support the company.
I don't believe 90% of these "statistics". They are mostly PFA "Plucked From Air".
sniggler
September 17, 2010 at 9:33am
The reason for piracy is simple. NO-ONE wants to pay $70 for a new XBOX game, $50 for a new PC game, $25-$30 for a movie, etc.
The markup on this crap is unbelievable, and the big-wigs at Viacom / Sony / etc. have failed TIME AND TIME AGAIN to REALIZE they are LOSING MORE MONEY FROM PIRACY than if they were to CUT THE DAMN PRICES.
Granted, people will continue to steal even if it costs next to nothing but there are a lot of honest folk out there who download stuff simply to 'get at The Man'. After all, isn't that the entire motto of orgs like the Pirate Bay? To get back at The Man? See Robin Hood for details. We're stealing from the rich here!
There is far more to piracy than just stealing, and until these rich ignorant idiots in suits realize this, it's going to continue to be a major problem.
And as for the DRM-nutjobs like Activision / Ubisoft, I've got news for you: YOU'RE DOING IT WRONG
F the RIAA
Biceps
September 17, 2010 at 6:21pm
Right up there with the original promise: Get cable TV, and never watch another commercial again! That lasted about 6 months....
devastator_2000
September 17, 2010 at 9:20am
Piracy will never go away! There will allways be people who just dont want to pay for anything, so if the BSA, RIAA, MPAA or any one else thinks they can STOP it altogether, then they need to pull there head out of the sand.
That being said, I am sure there are ways to reduce piracy. Take the DVD for example. I wanted to get a copy of UP! for my kids on DVD. I go to wal-mart (the cheapest place on the planet) and they wanted $19.95 for it. I look aound and most of Disneys top movies are that price. I was looking to spend about $13 - $15 for the DVD. So I did not buy it. No DVD should cost $20 to own, and it is the same with all media. I refuse to pay $50 for a game that may suck, $15 for a CD with 1 good song or $20 for a DVD. My answer to that problem was to wait until it went on sale, or buy it second hand, but now if they get there way the second hand market would be shut down. So i dont feel bad for them when half the problem is because of ther greed.
Nimrod
September 17, 2010 at 3:11pm
The fact show that piracy DOES NOT come from people who dont want to pay for anything. The fact of that matter is that it mostly comes from people who already pay the most. The people who porate the most also BUY the most.
Nimrod
September 17, 2010 at 3:11pm
The fact show that piracy DOES NOT come from people who dont want to pay for anything. The fact of that matter is that it mostly comes from people who already pay the most. The people who porate the most also BUY the most.
Nimrod
September 17, 2010 at 3:11pm
The fact show that piracy DOES NOT come from people who dont want to pay for anything. The fact of that matter is that it mostly comes from people who already pay the most. The people who porate the most also BUY the most.
Nimrod
September 17, 2010 at 3:11pm
The fact show that piracy DOES NOT come from people who dont want to pay for anything. The fact of that matter is that it mostly comes from people who already pay the most. The people who porate the most also BUY the most.
damicatz
September 17, 2010 at 7:47am
The BSA's entire business model is based on shaking down small businesses for money due to innocent licensing mistakes due to byzantine and hard to understand licensing models. They also operate outside of the law with gestapo tactics. Next time you buy a site license for software, you should carefully read the agreement as it will allow the BSA to audit you at anytime under a "guilty until proven innocent" scheme. And the BSA can choose to fine your business for any number of reasons; even if you have a software that, under the law, was legally purchased, they can still fine you if they choose not to accept the receipt as a valid proof of purchase.
Despite all of the protestations against software copyright infringement, the BSA has no desire to end it because if no one used illegal copies of software, the BSA wouldn't have a source of revenue. The BSA makes millions of dollars a year in shaking down small businesses whose only mistake is being confused by licensing models that rival the tax code in complexity. If so called software "piracy" went away, the BSA would be out of business.
cc3d
September 17, 2010 at 6:49am
just like the RIAA, you can't trust any study they push as it's self gratifying.
This is the same group that prevents you from reselling software on eBay (like Rosetta Stone). What a crock! I can't resale a $500 s/w package when I'm done with it? You can bet I won't buy it next time, I'll find another way to get it!
Want to end piracy? Then have money-back options for crappy software and give us the option to resale software. Otherwise, deal with losing $$ from piracy!!
Bullwinkle J Moose
September 17, 2010 at 6:30am
If all software available came with sourcecode, we could eliminate intellectual property theft by Major Software Companies and provide cunsumer assurance that the software we get is free from spyware, stolen code and malware
THAT would do more for the economy than enforcing End Loser Licencing Agreements based on stolen code
I'M LOOKING AT YOU MICROSOFT!
Bullwinkle J Moose
September 17, 2010 at 3:19pm
All software should come with sourcecode!
Nobody could legally sell that sourcecode or works derived from except the owner of the code.
Their sourcecode would be protected by patent and copyright laws
BUT, the end users could then see if their is spyware or malware or unlicensed 3rd party code in the software
It would protect US and the owner of the code
It's so simple, only a criminal enterprise and their minions would reject it
tri8gman
September 17, 2010 at 7:52pm
...people who think it's retarded to own an idea would reject it. Although I can't tell if you're being partially sarcastic or not. Your statement that it's "so simple" makes me wonder.
Caboose
September 17, 2010 at 3:32pm
Ok. So the source code is released to the public, but the public can't do anything but look at it due to copyright. How exactly does this prevent someone from stealing the app? I mean hell, current copyright protections don't prevent someone from stealing an app.
eeach
September 17, 2010 at 6:05am
Most software downloaders steal software that they otherwise wouldn't use. For example, Photoshop CS5 is $700... the kid down the street isn't going to buy it to d*** around on, but the graphic arts company will buy it to use for their business. Given it was possible to curb software downloading, the kid down the street just won't find out he has a talent for graphic design, or will find a free alternative that the graphic arts company will eventually migrate to b/c all their new artists grew up on GNU apps.
sniggler
September 17, 2010 at 9:38am
Agreed. More companies need to adopt the Microsoft Student Licensing way of things.
I think it should be enough to prove you are a high-school student, and not a student of an accredited college / university.
M$ has a good idea going here, they need to lower the requirements however and more companies need to adopt (Adobe)
Walnut
September 17, 2010 at 8:52am
As much as I think this study is bullshit, you can't really justify pirating software with the "I wouldn't have bought it anyway" line. How does not being willing to pay for something entitle someone to own it? This is backward logic. In any case, the kid down the street could easily discover his passion through other means, like school or some PS alternative such Gimp. It's one of the top results for just about anything involving a search for "Photoshop" and "free."
tri8gman
September 17, 2010 at 8:03pm
You completely missed the point.
The idea is stopping piracy = increased revenue.
Where as the reality is stopping piracy = increased expense.
You expend resources to stop something that won't end up in increased revenue anyway...
"I can't afford it anyway" isn't a statement of entitlement, it's a statement of "You're not going to win either way."
Of course, nobody cares about the benefits of piracy. Oh, right, there are none, right? Nobody benefits from the exposure piracy allows for one to discover and develop skills for them to get a job and then one day actually purchase the software they stole.... (Hell, I've done it with games: steal, play, like, buy)
Related comic:
http://www.murraythenut.com/2010/03/23/adulthood/
Also, I find that public schooling (the kind that wouldn't also cost money like the software - yes, I know it's taxes, different subject) is HORRIBLE at technology teaching. Hell, even regular colleges are sickeningly behind in their ability to teach anything. And for things like Photoshop especially, you have Machead professors who think that you can only use a Mac for artistic-related software.
stradric
September 17, 2010 at 6:26am
The "Business Software Alliance"? [sarcasm]Wow, that sounds like an impartial group of people that have a strong grasp of the piracy situation.[/sarcasm] Their black & white view of the situation is completely predicable and wrong. Without an accurate assessment of how many pirates would actually purchase the software if it wasn't available illegally, their study is completely bogus and self-serving. Like 'eeach' said, if you couldn't get photoshop, you probably wouldn't go buy it for $700. You'd just download GIMP instead and deal with the unfamiliar interface. There are many open source alternatives for popular commercial products and this study doesn't take that into account.
ninite.com is a great site for demonstrating this point. That site has just about every piece of software I as a windows power user need to get by. And they're all free!\
Point is, people pirate software because they don't want to buy it. If somehow they were magically forced to pay, they would seek free alternatives. If anything, the government should help educate the people about where they can obtain free software rather than trying to punish the people for attempting to obtain software illicitly.
Bullwinkle J Moose
September 17, 2010 at 6:16am
It would be easier to end poverty by getting rid of the RIAA
and closed software, I mean spyware.. I mean Microsoft and iTunes and such
If it aint open source, its stolen code and/or spyware or why hide it in the first place?
If the copyright courts can't protect your open source software, why should anyone....ah...um....Microsoft?
Millions of coders are dying to see what else your hiding in Windows sourcecode under the guise of intellectual property protection
(Others coders property no doubt)
Velcrow
September 17, 2010 at 6:50am
So if a 3rd party was allowed to analyze the code to validate that it is proprietary would that be enough? Or does it have to be free and benefit you to prove it's uniqueness? The whole "if it ain't open source, it's stolen" arguement is baseless. Come on in from the fringe, man.
Bullwinkle J Moose
September 17, 2010 at 8:11am
QUOTE: The whole "if it ain't open source, it's stolen" arguement is baseless. Come on in from the fringe, man.
----------------------------------------------------------------------------------------------------------------
Wrong!
Microsoft was already sued and lost for using other peoples copyrights and patents in Windows XP and Vista
AND, since you and I are not legally authorized to enter into a licencing agreement that violates a 3rd parties copyrights and/or patents, Microsofts License is NULL AND VOID!
Try to stay up to date on the news before you make such comments
Bullwinkle J Moose
September 17, 2010 at 8:04am
The public will never trust a 3rd party when Gov't sponsored spyware and stolen code is at stake
Untill you open the Code, your End Loser Licensing agreement is Null and Void!
PERIOD!
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