The Economist Rails on Flawed BSA Piracy Study
If you have a subscription to The Economist, make sure to check out their
great critique of the BSA's latest software piracy numbers (BSA or just BS?;
Software piracy):
IT SOUNDS too bad to be true; but, then, it might not be true. Up to 35%
of all PC software installed in 2004 was pirated, resulting in a staggering
$33 billion loss to the industry, according to an annual study released this
week by the Business Software Alliance (BSA), a trade association and lobby
group.
Such jaw-dropping figures are regularly cited in government documents
and used to justify new laws and tough penalties for pirates-this month in
Britain, for example, two people convicted of piracy got lengthy prison
sentences, even though they had not sought to earn money. The BSA provided
its data. The judge chose to describe the effects of piracy as nothing less
than "catastrophic".
But while the losses due to software copyright violations are large and
serious, the crime is certainly not as costly as the BSA portrays. The
association's figures rely on sample data that may not be representative,
assumptions about the average amount of software on PCs and, for some
countries, guesses rather than hard data. Moreover, the figures are
presented in an exaggerated way by the BSA and International Data
Corporation (IDC), a research firm that conducts the study. They dubiously
presume that each piece of software pirated equals a direct loss of revenue
to software firms.
To derive its piracy rate, IDC estimates the average amount of software
that is installed on a PC per country, using data from surveys, interviews
and other studies. That figure is then reduced by the known quantity of
software sold per country-a calculation in which IDC specialises. The
result: a (supposed) amount of piracy per country. Multiplying that figure
by the revenue from legitimate sales thus yields the retail value of the
unpaid-for software. This, IDC and BSA claim, equals the amount of lost
revenue.
http://www.corante.com/copyfight/archives/2005/05/25/the_economist_rails_on_
flawed_bsa_piracy_study.php
You are a subscribed member of the infowarrior list. Visit
www.infowarrior.org for list information or to unsubscribe. This message
may be redistributed freely in its entirety. Any and all copyrights
appearing in list messages are maintained by their respective owners.
