While it’s clearly a marketing ploy to promote efforts around stopping software piracy and unlicensed software use, the Business Software Alliance claims that reducing such illegal activity could boost the economy by recovering licensing revenue and create a half a million new tech jobs.
The group, in a released statement, claims that cutting piracy by just 10% could spur $142 billion into the global economy, generate $32 billion in new government tax revenue and foster jobs.
The United States, which is the world’s largest software market, could see development of 25,000 jobs, nearly $38 billion in new economic activity and $6.1 billion in tax revenues, and boost new spending and tax revenues another 38%.
The group, in a released statement, claims that cutting piracy by just 10% could spur $142 billion into the global economy, generate $32 billion in new government tax revenue and foster jobs.
The United States, which is the world’s largest software market, could see development of 25,000 jobs, nearly $38 billion in new economic activity and $6.1 billion in tax revenues, and boost new spending and tax revenues another 38%.
If the 29% piracy rate in Canada was cut by 10% it could result in 6,445 high-tech jobs, more than $3 billion in new economic activity, and $ 1.5 billion in new taxes by 2013.
According to the Alliance, four out of 10 programs currently being used are pirated software.
"Reducing software piracy is an opportunity to inject much-needed stimulus into the economy," said Michael Murphy, chairman of the BSA Canada Committee, said in a press statement.
"Because selling, servicing and supporting software creates demand for related distribution and services, the impact of software piracy reaches beyond software publishers, starving local distributors and service providers of spending that creates jobs and generates more tax revenues, boosting the local economy."
The BSA study, “The Economic Benefits of Reducing Software Piracy,” states that more than 80% of the benefits tied to reducing software piracy accrue to local economies worldwide.
European Union countries could gain 61,000 new jobs, nearly $43 billion in new consumer and business spending, and close to $13 billion in new tax and boost the new spending and extra tax revenues another 3%.
While a 10% piracy drop may seem a formidable challenge the BSA points out that Russia managed such an accomplishment between 2005 and 2007, and notes there’s been a 5% drop in Iceland and Ukraine.
By: Judy Mottl
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