Europe loses fight against piracy

Software European industry will miss out on sales unless it hits hard at piracy, warns Nigel Tutt from Brussels.

The European software industry continues to be held back by hits hard at piracy, warns Nigel Tutt from Brussels. unacceptable levels of piracy, according to a study by Price Waterhouse and anti-piracy group the Business Software Alliance (BSA).

Speaking at a conference in Brussels last week, BSA Europe managing director Emilia Knight said the 1996 average for piracy in Europe was 43 per cent of PC business software, compared with the US average of 27 per cent.

'If the Western European piracy rate had been reduced to that of the US, in 1996 we would have seen a 62.2 per cent increase in legitimate sales, a 60.3 per cent increase in total employment by the software industry and a 63.5 per cent increase in tax revenue,' commented Knight.

She added: 'If we project those figures to 2001, such a decrease in software piracy could generate additional sales of $37.4 billion, create 258,651 jobs and bring $13.9 billion in additional tax revenues.'

The study, The Contribution of the Packaged Software Industry to the European Economies, was conducted by consultancy Price Waterhouse for the BSA and is based on 1996 data.

David Gulley, senior economist at Price Waterhouse and the study's primary author, said the European software industry generated $37 billion in sales, 334,181 jobs and $15 billion in tax revenues in 1996, despite the fact that four out of 10 PC business software applications used were illegal.

The BSA's Knight said it was vital Europe took steps to tackle software piracy or it would be left behind its international competitors in the global digital economy.

'Those countries which are not at the forefront will miss the boat. The countries that have a technological deficit today will have a commercial and economic deficit tomorrow,' she said.

Knight said the US approach of strong legislation with severe penalties, coupled with proper enforcement, is the only way to combat piracy. 'Most European countries have legislated against piracy, but the challenge for governments now lies in enforcing the present laws. Legislating is essential, but not enough. The strategy must be based on three pillars - governments, police and the judiciary. We have a common enemy, let's fight a common battle,' she said.