New Study Shows Economic Impact of Software Piracy
REDMOND, Wash., Sept. 2, 1999 — Software piracy continues to severely affect employment, income and tax revenue in states and local communities throughout the United States, according to a state-by-state analysis announced today by Microsoft. The analysis, conducted by International Planning and Research (IPR), shows that 21 states and the District of Columbia had an increase in software piracy rates last year, including leading technology states such as California and Virginia that have fueled much of the recent growth in the technology sector.
This new state-by-state software piracy study, like similar studies conducted by the Business Software Alliance and the Software & Information Industry Association, compares two sets of data: the estimated installation of new software applications and the legal purchase of these applications. The difference between the number of copies installed and the number purchased represents the estimated piracy rate. IPR then built upon previously published research on the economic effects of piracy to prepare economic estimates for each state.
Besides taking legal action against 168 resellers last year for engaging in software piracy and working alongside law enforcement officials to address criminal counterfeiting of Microsoft software, the company is giving back to many of the communities that are harmed by software piracy. In addition to its other community affairs activities, Microsoft will donate an estimated $25 million over the next five years – half of its software piracy recoveries – to nonprofit organizations focused primarily on providing access to technology in disadvantaged communities.
States that have seen an increase in piracy