User:Romeplows/Software piracy in Australia

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Software piracy in Australia is considered to be a major problem that can cost the country as much as half a million dollars in lost revenue. Since 2001, the piracy rate has been fairly consistent and really shows no sign of a significant drop. Compared to other developed nations, the piracy rate in Australia is slightly high in spite of pretty strict copyright laws, such as the Australia-United States Free Trade Agreement and the Copyright Legislation Amendment Act of 2004.


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[edit] Piracy Rates

Piracy rates in Australia have remained fairly consistent at around 30 percent since 2003. In 2003, the reported piracy rate was 31 percent, 2004 was 32 percent, 2005 was 31 percent, and 2006 was 29 percent[1], perhaps showing a trend toward dropping more in line with other highly developed nations such as the United States and Germany. One reason piracy rates remain high is because of a general technical savvy among Australians and high rates of access to fast broadband internet providers.


[edit] Copyright laws

The introduction of the US Free Trade Agreement Implementation Act and the Copyright Legislation Amendment Act of 2004 has made software piracy a criminal offense for the first time and carries some major penalties, including possible jail time. Thanks to an amendment of section 132 of the Copyright Legislation Amendment Act of 2004, illegal software does not have to be sold for direct financial gain to be considered a criminal offense. If an illegal piece of software is being used commercially to gain a business advantage or profit with no intention of being sold, that is now considered a criminal offense.[2]


[edit] Effect on market

Softwire piracy has a significant impact on the economy of a country, costing millions in lost sales, job losses, and tax losses. An indirect impact is that now companies must use extra money to protect their software and legitimate users instead of using that money for other things such as research and development of new technologies.[3] In 2004, software piracy cost Australia an estimated 545 million dollars. Worldwide, the cost was estimated at 32.6 billion.[4] The BSA estimates that “a 10-point drop in Australia's piracy rate from 32 percent to 22 percent could create nearly 10,000 jobs and pump $4.7 billion into the economy. It could also increase local industry revenues by more than $3.5 billion and generate nearly $1 billion in additional tax revenues.”[5]


[edit] Comparison to other areas

Compared to other highly developed nations, Australia’s piracy remains slightly high. For example, in 2004 the piracy rate in the United States was 21 percent, while the rate for Germany was 27 pecent. This is compared to a 32 percent rate in Australia for that year. When looking at percentages we have to be careful not to jump to conclusions. While the rates in Australia may be higher than in the United States, overall software piracy in the United States cost the country significantly more at an estimated 6.6 billion dollars. The highest rates of piracy occur in Southeast Asia at 58 percent and Latin America at 66 percent, and losses of 7.9 billion and 1.5 billion respectively. While the percentage of piracy in the European Union is an estimated 35 percent, much lower than that of Southeast Asia, the biggest losses occur here at an estimated 12.1 billion dollars.[6]


[edit] References

http://www.bsaaustralia.com.au/bsaaweb/main/index.php
http://www.microsoft.com/australia/genuine/Piracy.mspx
http://www.itwire.com/content/view/1377/2/
http://www.bsaaustralia.com.au/bsaaweb/main/index.php?ch_table=link4&PID=10&SID=tYuITKEzCTqrdjlF&loc=1
http://www.bsaaustralia.com.au/bsaaweb/main/index.php?PID=5&ch_table=link4&loc=1