Business bill for fixing software piracy issues on the rise

IDC report claims global businesses will have to spend $114bn in 2013 fixing security issues stemming from counterfeit software

Businesses across the world will have to spend some $114bn (£76bn) this year dealing with security issues caused by piracy – more than $312m every day – according to a new report commissioned by Microsoft as part of its Play It Safe piracy awareness campaign.

The Dangerous World of Counterfeit and Pirate Software report, commissioned by the vendor and conducted by analyst IDC, showed that the global supply of counterfeit software estimated to be installed this year will exceed two billion programs. The figure is three times that of 2006.

Of the $114bn total estimated to be spent fixing security problems, $39bn will be spent by the Asia-Pacific region, $21bn in western Europe, $16bn in north America and $13bn and $8bn in the Latin America and Central and Eastern Europe area respectively.

The findings also predict that three in 10 enterprise PCs with counterfeit software installed will be infected by malware this year, with the figure rising to one in three on consumer PCs.

The analysts claims that on consumer computers, nearly half of pirated software comes from web-based sources which was downloaded from web sites or peer-to-peer networks, while 21 per cent came from street markets, 16 per cent was borrowed and seven per cent came from auctions. The remaining seven per cent came from other sources including specialist computer shops and other retailers.

Microsoft's head of anti-piracy in the UK, Michala Wardell, said the piracy landscape in the UK has improved, but that resellers can still help.

"We want to educate people on how they should be buying through the channel. We have a fantastic channel which is very capable for servicing businesses," she added.

"The channel can put them on the right track and ensure they are protected. It is also about making sure that these purchases [of legal software] are through the channel, which in turn drives revenue through the software and services."

IDC's study analysed 270 websites and peer-to-peer (P2P) networks, 108 software downloads, and 155 CDs or DVDs, and interviewed 1,104 consumers, 973 business users and 258 IT managers or chief information officers in the UK, the US, Brazil, China, Germany, India, Mexico, Poland, Russia and Thailand.