Olongapo Telecom & Information Technology

Saturday, October 06, 2007

RP losing millions of dollars daily due to software piracy

CEBU CITY — The Philippines loses millions of dollars – in lost revenue opportunities daily — just because of software piracy.


But if only most computer users respect intellectual property rights, the country stands to gain an additional $ 25 million in taxes.

Software piracy in the country is incredibly alarming, but the revenue opportunity if software piracy in the country is cut is even much more unbelievable.

For a mere 10 percent reduction in the piracy rate – from 71 to 61 percent -- in four years, the country would earn $ 25 million more.

Still, with the present software piracy rate, total losses reach $ 119 million annually.

These figures are being tossed to the public by Roland Chan, director for marketing in Asia for the Business Software Alliance (BSA), adding that 2,000 new information technology jobs will be created and $ 325 million in sales revenues for local software vendors will be achieved if only software piracy is decelerates to 61 percent from the current 71 rate.

"The Philippine economy will gain a lot by reducing software piracy," said Chan in a press conference in Cebu City Thursday.

The research firm IDC said that software piracy in the Philippines is already alarming with the 71 percent since 2004.

This means that for every 100 computers in the country, 71 are using pirated software, said Chan. "This figure equates to a loss of $ 119 million to the software industry," said Chan.

Despite the existence of the Intellectual Property Rights law in the country, Chan said software piracy is still rampant although he admitted that the government has shown its will power to improve protection of intellectual property rights here.

Chan said it is not the price of original software that pushes an individual or business organization to resort to using pirated software stressing that based on a recent study, the most pirated software are those that are cheap.

An original anti-virus utility software could cost around R1,000 or more but a pirated version sold on sidewalks costs only P80 to P100. But Chan said ignorance of the law and not the price of software is a major factor in piracy. (Mars Mosqueda - Manila Bulletin)

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