The UAE, Oman, Bahrain, Kuwait and Qatar were among some of the countries in the Middle East that demonstrated positive results in combating software piracy during 2003, according to the new Global Software Piracy Study 2004 commissioned by Business Software Alliance (BSA).
The comprehensive study, conducted for the first time by the international research firm, International Data Corporation (IDC), adopted a new methodology that took into account the entire global software market valued at $51 billion, by including categories that were not covered in the previous surveys, such as operating systems, development software and consumer-oriented software.
According to the study, piracy rates in the UAE stood at 34 percent, while 65 percent in Oman, 68 percent in Kuwait, 64 percent in Bahrain and 63 percent in Qatar.
Total retail losses due to software piracy in the Middle East region stood quite high at $ 898.9 million in 2003.
However, Middle East and North Africa region (MENA) fared better compared to other regions, such as Eastern Europe where average piracy levels touched 70 percent and retail losses amounted to over $2.2 billion, and Latin America which showed piracy levels of 63 percent and losses of $1.2 billion.
“This major Global Software Piracy Study, conducted for the first time by IDC, shows that the GCC region continues to make good progress in the fight against piracy," said Jawad Al-Redha, co-chairman, BSA Middle East, at a press conference in Dubai.
“The success in combating piracy in most GCC countries is a direct result of the collaboration between BSA, governments and the business sector in mounting a sustained campaign against software piracy,” he added.
Al-Redha believes that the positive results achieved across the region should be viewed against the remarkable results shown in 2002 and the preceding years.
“According to a study conducted by the IPR, between 1994 and 2002, the Middle East and North Africa region recorded the most significant reduction in software piracy, with a drop of 31 points, from 80 percent to 49 percent,” he pointed out.
IDC used its own proprietary statistics for software and hardware shipments, conducted more than 5,000 surveys in 15 countries and used its own analyst force to review local market conditions.
With ongoing coverage of hardware and software markets in more than 65 countries and with 60 percent of its analyst force outside the United States, IDC started with a deep and broad information base for developing the 2003 software piracy rates.
The new study has followed a different methodology in compiling data on piracy, compared to the earlier studies. The key difference is that IDC has expanded the scope of the study by including operating systems and consumer applications such as PC gaming, personal finance and reference.
Earlier BSA studies had taken into consideration only the packed software applications market that is valued at around $35 to 40 billion, whereas the entire global software industry is estimated to be worth over $51 billion.
The IDC study has concluded that software piracy continues to be a major challenge for economies worldwide.