by Simon Quicke
21 July 2008
As the dust settles on a series of surveys and predictions on the future of software piracy the overall conclusion for the channel is that things could get a lot worse.
On the one hand Microsoft has paid consultancy IDC to calculate the loss to resellers as a result of piracy. But only days later the vendor was warning that youngsters are more prepared to buy counterfeit software, with a quarter of the 11- to 16-year-olds asked happy to admit they had bought fake goods.
At the same time the Federation Against Software Theft (FAST) raised the spectre that as a result of tough economic times more company directors would run the risk of using unlicensed software.
FAST showed its determination to catch those company directors hoping to save money on their software bills by announcing a pilot scheme with Trading Standards in Cardiff to take advantage of changes to the law that allow stronger protection of intellectual property.
Overall the picture created by the various surveys is that piracy costs resellers $5.50 for every $1 lost to the vendor through lost revenue, but there are more people prepared to cut corners to save money and a generation not bothered about legitimate product.
John Lovelock, chief executive of FAST, said the organisation was taking an approach of offering advice and education, but ultimately those who flaunted the law would have to face the consequences, which would range from fines to prison terms.
Others in the industry fighting piracy also expressed a fear that a combination of opportunism and neglect could fuel an increase in counterfeiting.
“I am quite concerned seeing the FAST research that company directors think that shortcuts can be made, and they could end up paying much more,” said Michala Wardell, head of anti-piracy and licensing at Microsoft.
In terms of the generation of teenagers happy to use counterfeit products, she said education could help turn that around, but it was an issue that should worry the channel.
“A very large proportion of people are downloading illegally and that cuts out the channel completely,” she said.
