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Stolen Software: Piracy Hits More than Movies and Music

 & Michael Muchmore Contributor

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With all the focus on digital media piracy—movies and music—during the SOPA/PIPA debates and protests (and the Megaupload takedown) over the past couple of weeks, one major victim of digital piracy largely escaped notice: Software. According to the Business Software Alliance's most recent report, 42 percent of all software used in the world is pirated, and the commercial value of unlicensed software put into the market last year totaled $59 billion—nearly double the figure from 2003. By comparison, a study cited by the Recording Industry Association of America claims a total annual loss of $12.5 billion. The Motion Picture Association of America doesn't break out its own share but cites the total loss to digital piracy of all kinds as $58 billion.

In any case, the toll on software is significant, and possibly even more significant than the losses to the entertainment business. In fact, the loss dollar numbers for movies and music has been called into question: Though they may represent the value of the stolen content, they may not represent actual lost revenue, since in many cases the consumer simply wouldn't have bought the music or movie they download via file-sharing. Even the solid-sounding numbers put out by the BSA are criticized as being flawed, since many of the "pirates" in the third-world would never be able to afford paying for the software. But business software is less of a whim purchase than entertainment, so it's more likely that the downloader would have had to buy it if he hadn't pirated it.

PCMag.com asked the two software houses probably most affected by piracy—Adobe, Microsoft—for their takes on the issue. We contacted Apple, too, but didn't receive any response, though it, too, is a member of the BSA. If we hear back, we'll update this article.

We also contacted the Software Information & Industry Association, which fights piracy, providing a reporting system with rewards for whistleblowers. The organization even posts a Piracy Wall of Shame, with photos and statements of remorse by wrongdoers who were sued for their action.

The Association's General Counsel and senior vice president for Intellectual Property Policy & Enforcement, Keith Kupferschmid was anything but ambiguous when it came to discussing the Megaupload takedown: "Megaupload is one of the most flagrant violators of our members' software and content copyrights. We have been combatting piracy on Megaupload for many years, and we're very pleased to see the Federal government take action to stop this illegal activity." He went on to mention another violater that remains at large, "Megaupload is the worst of the worst, ranking up there with RapidShare." The Association didn't forward us a statement on SOPA/PIPA, but its strong anti-piracy bent is a clue, and last May, the organization endorsed PIPA [PDF].

Despite all the focus on downloading, however, download sites like those targeted by PIPA and SOPA turn out not to be the primary vectors for stolen software copies, according to BSA. More typically, someone buys one legal copy and then installs it on multiple PCs illegally. "Fifty-one percent of PC users surveyed in emerging markets (including the same percentage of business decision-makers) mistakenly believe this is legal to do," says the BSA report.

The Most Popular Pirated Software
The most recent SIIA study listing the top pirated software was in 2008 covering the previous year, but since then the organization has reported just by category. In 2010, its annual report broke down the top categories of pirated software as follows:

Software Type Share of Pirated Titles
Productivity 57%
Utilities 30%
Database 24%
CAD 15%
Creative 11%
Accounting 11%
Development 10%
Document Mgmt. 7%
Media Mgmt. 6%
Security 2%
Server 0%
Operating Systems 0%

A look at the popular BitTorrent tracking site, The Pirate Bay, provides a good idea of just which software titles are the most pirated. This list of the top dozen software titles is sorted by torrents with the most seeds, or full copies of the application, with duplicates omitted:

Application Bittorrent Seeds
DriverPack Solution 11 17465
Adobe Photoshop CS5.1 6484
Microsoft Office 2010 3036
Microsoft Word 2007 2378
WinRAR 4.0 2154
Nero Burning ROM 10.5 1986
Adobe Illustrator CS5.1 1902
ESET Smart Security 5 1691
Windows 7 Ultimate SP1 1655
Adobe After Effects CS4 1620
Avast AntiVirus Home Edition 1402
Corel Draw X5 1360

Of course, that's just one torrent indexer, but it gives an idea of the types of software being pirated. Many of the downloads come with cracked keys for the software, too. The list is dominated by Adobe and Microsoft, whom PCMag contacted about piracy in general, and SOPA/PIPA and the Megaupload takedown in specific.

Adobe wouldn't give us a breakdown of its most pirated software titles, thought the BitTorrent list probably give some insight into that. They did offer the following brief statement, "Adobe does not comment on statistics on our products affected by piracy, but can confirm piracy is a major problem for us much like the rest of the software industry. The global software industry suffered a loss of nearly $59 billion in sales last year, according to statistics compiled by the Business Software Alliance (BSA)."

Microsoft, for its part, has a whole sub-site dedicated to anti-piracy, and is known for its cumbersome content protection schemes and activations. The company's business depends on legally purchased software, and the sub-site's mission statement makes that clear: "Pirated software hurts everyone—from software developers to retail store owners, and ultimately to all software users. Furthermore, the illegal duplication and distribution of software has a significant impact on the economy."

Though Microsoft was notably silent for most of the SOPA/PIPA protest day on January 18, when Wikipedia went dark in the US and other sites displayed banners, we were offered the following statement on the legislation by a Microsoft spokesperson: "We oppose the passage of the SOPA bill as currently drafted. We think the White House statement points in a constructive way to problems with the current legislation, the need to fix them, and the opportunity for people on all sides to talk together about a better path forward."

A Global Problem
As you might expect, software piracy is a much larger problem proportionately in emerging markets than in North America and Europe, according to the BSA study. Countries topping the list according to the BSA's latest study are Georgia, with a 93% piracy rate, followed by Zimbabwe (91%), Bangladesh (90%), Moldova (90%), and Yemen (90%). Countries with the lowest piracy rates include the United States, Japan, and Luxemburg, all with 20%. Here are the top ten countries with the highest and lowest piracy rates:

HIGHEST PIRACY   LOWEST PIRACY  
Georgia 93% United States 20%
Zimbabwe 91% Japan 20%
Bangladesh 90% Luxembourg 20%
Moldova 90% New Zealand 22%
Yemen 90% Australia 24%
Armenia 89% Austria 24%
Venezuela 88% Sweden 25%
Belarus 88% Belgium 25%
Libya 88% Finland 25%
Azerbaijan 88% Switzerland 26%

So even among the countries with best records a fifth to a quarter of all software is pirated. And these percentages don't tell the story of which countries are responsible for the highest total dollar amount of pirated software: Leading the pack are the United States, with $9.5 billion and China, with $7.8 billion. China has a piracy rate of 78%. Here are the top countries in terms of dollar value of pirated software:

COUNTRY COMMERCIAL VALUE $M
United States $9,515
China $7,779
Russia $2,842
India $2,739
Brazil $2,619
France $2,579
Germany $2,096
Italy $1,879
United Kingdom $1,846
Japan $1,624

Surprisingly, the piracy rates for 2010 actually dropped in 51 of the 116 geographies studied in 2010 and went up in only 15. "But, crucially," reads the report, "regional average rates rose by 1 point in both Asia-Pacific and Latin America—two economic hotbeds of the developing world." The BSA report notes that, "at the current pace, it would take until 2049 for the average piracy rate among today's emerging economies (69 percent) to fall in line with that of today's developed economies (26 percent)."

Numbers like that make staunching the enormous level of software piracy worldwide a daunting proposition. Surprisingly, though, the BSA study also surveyed people worldwide and found that the vast majority actually supported intellectual property rights: "Seven PC users in 10 support paying innovators for their creations to promote more technology advances, while just three in 10 say no company or individual should control technologies that could benefit the rest of society." So at least there's one glint of hope in an otherwise bleak picture.

About Our Expert

Michael Muchmore

Michael Muchmore

Contributor

My Experience

I've been testing PC and mobile software for more than 20 years, focusing on photo and video editing, operating systems, and web browsers. Prior to my current role, I covered software and apps for ExtremeTech and headed up PCMag’s enterprise software team. I’ve attended trade shows for Microsoft, Google, and Apple and written about all of them and their products.

I still get a kick out of seeing what's new in video and photo editing software, and how operating systems change over time. I was privileged to byline the cover story of the last print issue of PC Magazine, the Windows 7 review, and I’ve witnessed every Microsoft misstep and win, up to the latest Windows 11.

I’m an avid bird photographer and traveler—I’ve been to 40 countries, many with great birds! Because I’m also a classical music fan and former performer, I’ve reviewed streaming services that emphasize classical music.

Technology I Use

For everyday work, I use a good-old Dell tower with 16GB of RAM, a 12th-gen Intel Core i7 processor, and an Nvidia RTX 3060 Ti GPU that runs on Windows 11. I pair it with a 4K Lenovo ThinkVision P27u-10 monitor and a Logitech MX Vertical mouse. For offsite work, I use a 2024 Microsoft Surface Laptop with a Qualcomm Snapdragon X Elite processor. Camera-wise, I moved to mirrorless from a Canon EOS 80D with a Canon 70-300mm IS USM lens. I now have a Canon EOS R7 with a 100-400mm lens, but I miss my DSLR for several reasons.

In order of usage, the software I turn to most frequently is the Edge web browser, Slack, Adobe Creative Cloud, Microsoft 365, Firefox, Brave, and WhatsApp. I use the Windows Phone link app to see everything on my Samsung Galaxy S21 Ultra phone, which has excellent telephoto capability.

For fitness monitoring, I have a Fitbit Charge 6 and use an Anker Smart Scale P1. I’m also a streaming fan, so I subscribe to both Amazon Music Unlimited (especially for its Dolby Atmos content) and Qobuz (for its high-res sound quality and classical catalog). I recently added a Vizio 5.1 Soundbar SE, which sounds surprisingly good given its low price. To holler commands instead of using a remote control, I have the Amazon Fire TV Cube in the living room, which lets me verbally tell the TV what I want to watch. It hooks up to an LG B4 OLED TV. I have a Sonos One speaker in my kitchen that also ties in with Alexa, as does the Echo Dot 2 With Clock in my bedroom. For serious listening, I have B&W 601 speakers plugged into a Conrad-Johnson Sonographe amp and preamp, with a Cambridge Audio AXN10 streamer as source. For reading, I also have a Nook GlowLight 3.

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