Friday, October 10, 2008

The pain of being Captain Sparrow

If software piracy is really so much of a trouble, can’t technology help?
We laughed for a long time before we answered the question. Technology can solve this issue in a jiffy; especially with net penetration increasing in all significant markets. Microsoft has initiated a similar approach wherein, if you’re using a non-licensed operating system and connect to the web, they would have already documented your details.

Software piracy has dropped in 67 countries and risen in only 7 out of 108 countries having significant markets. While UK has finally experienced a fall in the piracy rate, India, China, Russia and Brazil have an estimated piracy rate of 73%, 82%, 69% and 59% respectively (IDC survey). In Jordan too, the software piracy has only reduced by 1% whereas in Pakistan the same is by a puny 2%.The maximum loss suffered due to piracy was in the US.

So why isn’t the government stepping into stopping this in a coordinated manner? Firstly, governments don’t feel it’s their problem; as piracy reduction would only support the profits of these companies (and additional job creation is also minimal; for example, a 10 point reduction in piracy would create only around 400 odd jobs). Secondly, as many pirated software users are in reality large companies, it’s a very sensitive line between initiating legal action (and thus losing a prospective client forever) and coercing the user to proactively buy software

Think about it. Interested in watching a movie? Any movie? Pirates of the Carribean? Try Ares or Limewire; you’ll have a DVD quality copy in less than an hour of download.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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