Pirated software costs the local economy about $513 million - or about R4.2 billion - every year, hampering job growth and putting end-users' PCs at risk of infection by Trojans, worms and viruses.
Most of the culprits are small and medium businesses, although there are larger corporations that are also using illegal software. In addition to illegal downloads, one way firms pirate software is by installing the product on more PCs than the licence allowed.
According to the Business Software Alliance (BSA), the value of pirated software globally is $59 billion, or R482.8 billion, based on its latest figures.
Microsoft yesterday released the results of a study, compiled by the Harrison Group, into the effects of using pirated software. The launch coincided with the first Play Fair Day, a global initiative to promote the importance of genuine software.
The software giant says users of counterfeit software expose themselves to risk of infection by worms, Trojans and viruses - while legitimate resellers are losing millions of rands a month to rogue dealers selling unlicensed software.
Harrison Group's study found that almost one in four pirated operating systems become infected on installation, or independently downloaded and installed malicious software when the machine connected to the Internet.
“Our results indicate that counterfeit users pay a high cost for the low price of counterfeit software.
“Users of pirated software are opening themselves up to the potential for both catastrophic security breaches and significant losses in productivity and performance, regardless of the platform they use, and regardless of whether the counterfeit software's source is the Web, a street market stall, or an unprincipled hardware retailer,” said the Harrison Group researchers.
Leaking money
Mark Reynolds, Microsoft SA's small, medium and partner business lead, says this practice is harming SA's software sector as companies are deprived of revenue and job growth is stifled. He says, for every $1 worth of Microsoft software sold, the channel earns $7.
Reynolds points out that piracy literally takes millions of rands every month from the pockets of honest resellers, and damages the economies of emerging countries. “Pirated and counterfeit software is lining the pockets of criminals. What's more, when companies use pirated software, it hinders job opportunities and stifles innovation.”
Microsoft has a channel network of about 8 000 partners, notes Reynolds. He says the revenue that is lost when people pirate software could go to local companies, which would benefit the economy.
Trade and industry's chief director of company and IP enforcement Mandla Mnyatheli says trade in counterfeit goods costs SA millions of rands every year in lost revenue.
AxizWorkgroup business unit manager, Sally Berimbau, says “reducing software piracy could result in a number of benefits for the South African economy in terms of fostering IT innovation and job creation.
“Reducing software piracy creates a ripple effect throughout the economy, generating new spending on related IT services and distribution. That spending, in turn, creates jobs and delivers new tax revenues.”
Berimbau adds trimming software piracy would deliver tangible benefits to the local economy.
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