Software Piracy Cost Nevada Economy More Than $70 Million in 1997

LAS VEGAS, Feb. 9, 1999 — Microsoft Corp. today released statistics revealing that software piracy in Nevada caused the loss of an estimated 850 jobs and more than $70 million in combined lost wages, tax revenues and retail sales in 1997. Microsoft announced the data at its quarterly Direct Access briefing, which provides information and resources for software resellers and service providers in the area.

The economic data was released as part of an effort to raise awareness that the detrimental effects of software piracy – the theft of software through illegal copying of genuine programs or through counterfeiting and distribution of imitation products – reach further than just the software industry. The data was supplied by International Planning & Research Corp. of Redmond, Wash., which utilized data from a 1997 international piracy study published by the Business Software Alliance (BSA) and the Software Publishers Association (SPA) along with additional data and analysis of piracy in Nevada.

According to Microsoft, the software piracy rate in Nevada of nearly 40 percent in 1997 cost the state’s workers nearly 850 jobs, translating into almost $25 million in wage and salary losses. In addition, the data shows that Nevada lost more than $6 million in state tax revenues that could have instead contributed to local and state improvement projects.

“It’s alarming that Nevada has a piracy rate nearly twice that of California,”
said Gary Willman, general manager of Microsoft’s southwest district.
“To continue advancing the state’s software industry and realize its related economic benefits, we must work together to reduce the piracy rate in Nevada by increasing awareness about piracy’s damaging effects on us all.”

The software industry is a significant driver of the current economic prosperity in the United States, accounting for the creation of more than 2 million jobs, $102.8 billion in software and software-related services, and payment of $7.2 billion in taxes. However, software piracy threatens the ability of the industry to continue to contribute to the American economy. According to a 1997 study by Nathan Associates of Arlington, Va., commissioned by the BSA, software piracy in 1996 resulted in the loss of 130,000 jobs in the United States, $5.3 billion in wages and salaries, and nearly $1 billion in tax revenues.

Customers or resellers with questions about the legitimacy of Microsoft products should contact the Microsoft anti-piracy hot line, toll free, at (800) RU-LEGIT (785-3448), or send
e-mail to piracy@microsoft.com. Consumers also can obtain more information about software piracy by calling the Business Software Alliance anti-piracy hot line at (888) NO-PIRACY (667-4722) or sending e-mail to software@bsa.org.

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“MSFT”
) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

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