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.