Four out of 10 software packages ‘illegally’ used

MORE than four out of 10 software packages in use here is illegal, a rate that is costing the economy and undermining our software industry according to ICT Ireland.

ICT Ireland, established by employers’ body IBEC in 2001 as a representative and lobby group for the ICT sector, said the rate of software piracy here, at 42%, is a national disgrace.

The body said the figures, published by international consultants IDC, were particularly worrying given that Ireland is the largest

exporter of software in the world.

A rate of 42% in 2001 marks an increase of one point on the previous year and of the 17 countries surveyed, Ireland has the fifth highest rate of software piracy.

The European piracy rate ranges from 64% in Greece to 25% in Britain. Director of ICT Ireland, Brendan Butler, said almost 30,000 people are employed in the software industry, which is worth 8.5 billion to the economy.

“This thriving industry is being stymied in its development due to the level of illegal use of software at home and abroad,” he said.

“However, if it were to be

addressed, a significant number of additional jobs could be created in the industry here in Ireland,” he said.

The study, commissioned by the Business Software Alliance, indicates that a 10-point reduction in Ireland’s piracy rate could result in an additional 2,400 highly-paid jobs being created and add nearly 600 million to the economy.

Mr Butler noted that the software piracy rate here has fallen from a high of 70% in 1996 but said more needed to be done to cut it.

ICT Ireland said the Copyright Act, 2001 considerably strengthened the legislation in tackling illegal use of software in Ireland.

Under this legislation anyone found in breach of copyright faces penalties of up to five years in prison and/or a 127,000 fine.

Additionally, company directors can be held individually liable, both criminally and civilly, for any copyright infringement that occurs within their business.

“The software industry which

accounts for almost 10% of total Irish exports is being seriously undermined, particularly given the current challenges being faced by the ICT sector,” said Mr Butler.

“In addition to eroding Ireland’s competitiveness, our reputation as a location of choice by foreign IT companies is being threatened.

“This issue needs to be addressed urgently if we are to remain a serious player on the ICT global stage.

“Ireland’s key to remaining attractive and competitive to other countries lies in demonstrating our commitment to legitimate activities. Ireland needs to reduce its piracy rate dramatically to bring itself below the EU average,” said Mr Butler.

The loss of earnings from global software piracy in 2001 was 10.97 billion, according to ICT Ireland.

The countries with the highest piracy rates in 2001 were: Vietnam (94%); China (92%); Indonesia (88%); Ukraine (87%); Russia (87%); Pakistan (83%); Lebanon (79%) and Qatar (78%).