By John Mark V. Tuazon
Computerworld Philippines
May 12, 2010

Emerging technologies such as SaaS (Software-as-a-Service) and netbooks have the potential to bring down the rate of software piracy globally, according to a report by BSA (Business Software Association) and research firm International Data Corp.

Despite being a small yet fast-growing market segment, SaaS can create an impact on the overall global piracy rate—which, according to BSA’s latest report released Tuesday, is pegged at 43% in 2009, up two points from 2008—due to the unique business model it offers.

“SaaS changes the way software is used because it eliminates the need to install [the program] on the computer,” explained Victor Lim, vice president, Asia/Pacific consulting operations, IDC Asia Pacific.

The impact, for now, cannot be determined, since SaaS has not seen widespread adoption worldwide. “We will have to see if SaaS gets more traction in the market,” Lim added.

Netbooks, on the other hand, usually come with pre-installed software from OEM partners, removing the need to buy additional software for different purposes. “Netbooks don’t have a lot of computing factor, so many users run apps off the Internet,” Lim clarified.

Standstill
During the release of the seventh annual BSA/IDC global PC software piracy study, Jeffrey Hardee, vice president and regional director for Asia, BSA, revealed that for the third time in a row, the software piracy rate for the Philippines stood at 69%.

Dollar losses to piracy, however, showed a slight jump to $217 million in 2009, from $202 million the previous year, despite fervent efforts by the government to curb piracy in the country.

“Enforcement in the Philippines is focused mainly on the commercial factor of piracy,” Hardee explained, likewise noting the lack of enforcing law that would implement the WIPO (World Intellectual Property Organization) treaty in the country, despite being among the first governments in Asia to sign the agreement.

The BSA executive also pointed out the ills of the country’s legislative environment, which in the last session of Congress failed to pass essential bills that would help curb software piracy in the country. “The bills don’t hold any momentum in Congress,” he added.

Bien Marquez III, BSA consultant for the Philippines, upheld Hardee’s view, saying amendments to the Intellectual Property Code (IPC)—which has been proposed in Congress as early as 2002—are stalled because they were not given priorities during session. “The IPC was enacted in 1998; [the provisions] are not anymore up to par with recent changes in technology,” he pointed out.

Marquez, however, remains hopeful that specific rules proposed to the Supreme Court by the Intellectual Property Office—which would affect the trial of IPO cases in the country—will be approved before Chief Justice Reynato Puno steps down from his post on May 17.

Consumers still the Culprit
IDC’s Lim, meanwhile, stressed that mainstream consumers still form the majority of users adding to the global piracy rate. In 2009, shipment of consumer PCs around the world increased by 17%, while other PCs—those for schools, businesses, and government—declined by 15%, raising the consumer installed base of PCs to 50.2% last year, from 47.7% in 2008.

Hardee maintained that consumers should learn how to do their part in battling software piracy, since they contribute to the bulk of the rate annually. “We hope that schools can include in their curricula a course on the responsible use of software and the Internet,” he said, adding that there is no shortcut to curb software piracy.

The global software piracy study is an annual research collaboration between two firms, which seeks to highlight marked incidences of piracy across 111 countries around the world. This year, the study showed piracy rates dwindling in 54 countries, despite slight increases in 19 nations.

It also showed that software value lost to piracy decreased 3% to %51.4 billion in 2009. Emerging countries, it showed, contributed to increased piracy rates, while slight declines were recorded in developed countries, where most software companies are based.

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