Downturn spurs on software pirates

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By Jon Gillespie-Brown | September 2, 2008

Survey suggests current climate may prompt more UK businesses to try and cut costs by not being appropriately licensed

Written by Doug Woodburn

The channel may face a tougher job fighting piracy as the economic downturn begins to bite, new research has suggested.

Nearly four out of five (79 per cent) UK company directors surveyed at a recent trade event said they felt businesses would be more likely to try and cut costs in the current climate by not being appropriately licensed.

The survey, carried out by The Federation Against Software Theft (The Federation), follows damning research from IDC and Microsoft detailing the economic impact of piracy on the channel. The duo found that for every dollar lost by Microsoft through piracy, partners lose as much as $5.50 in missed revenue opportunities.

John Lovelock, chief executive of The Federation, stated: “When times are hard economically the automatic response is to look at ways to reduce cost. Our survey has highlighted a worrying trend that indicates that more and more companies are willing to risk the law in the name of cost cutting.”

Four out five respondents in The Federation’s survey felt that obtaining illegal software was ‘very easy’. Almost a third (32 per cent) cited the internet as the easiest way to obtain illegal software, with 23 per cent citing peer-to-peer file sharing. Some 12 per cent cited online auction sites while 14 per cent listed car boot sales.

“What this survey demonstrates is that the current economic climate could in fact have a detrimental impact on the current low levels of software piracy,” continued Lovelock.

“This emphasises the need to drive home the benefits and cost savings that can be achieved through effective management of software licenses; and the necessity to continue to promote the impact that corrupt software can have on an organisation’s IT estate, not forgetting the risks of being non-compliant.”