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36% of software is pirated

According to this article:

http://story.news.yahoo.com/news?tmpl=story&cid=509&ncid=509&e=29&u=/ap/20040707/ap_on_bi_ge/software_piracy_4

36% of software is pirated.  Wow that's a lot of lost revenue eh?

Pinky and the Brain
Thursday, July 08, 2004

TROLL.

pirated software does not translate directly (if at all) to lost revenue, and you and everyone knows it.

muppet from madebymonkeys.net
Thursday, July 08, 2004

And I bet if you take out all the businesses and just did home software, I bet you'd find that figure over 50%.

bah humbug
Thursday, July 08, 2004

I'm sure there is at least a small percentage of that 36% that would actually pay for the stuff becuase they do in fact use it/need it.

Pinky and the Brain
Thursday, July 08, 2004

err..  should read... would pay for it if they had to.

Pinky and the Brain
Thursday, July 08, 2004

how would they have to?  You can only copy-protect so far.  Unless you're one of those nutcases in favor of locking down everyone's machine and giving root passwords only to the FBI, there's going to be software piracy forever.

And the percentage is MINISCULE.  Most folks who pirate commercial software do so because they'd never in a million years be able to pay for it at retail.

muppet from madebymonkeys.net
Thursday, July 08, 2004

See article "BSA's Latest Made Up Software Piracy Numbers Parroted By The Press":

http://www.techdirt.com/articles/20040707/0146245_F.shtml


Thursday, July 08, 2004

"And the percentage is MINISCULE.  Most folks who pirate commercial software do so because they'd never in a million years be able to pay for it at retail."

Preposterous.  People spend an order of magnitude more on their cars than the latest OS and word processor cost.

And irrelevant even if it were true.  You see, if you take something without permission, that's what we call in kindergarten "stealing."

I'd like to see a statistic on how many people in the software field steal software.  90%, anyone?

secutus est
Thursday, July 08, 2004

How about "The value of the software is not consistent with its price?"

Developers always talk about the pricing gap in which nobody will buy your software.  It either has to be under $100 or over $10,000 or else you have no market.

This is ridiculous.

Another point also frequently made is that the amount of effort/development-hours/administrative costs/overhead that goes into the software must be recouped in the price.

Great.  But the problem with that argument is that the market will only support a price that is consistent with the inherent value of the software, with NO REGARD for how much it cost you to make it, so you'd better control your costs AND produce something high quality.

Many, many, MANY vendors get this all wrong, and their software is pirated.

muppet from madebymonkeys.net
Thursday, July 08, 2004

I wonder if some of these Asian or East European countires will ever develop a strong software industry when there is no protection of intellectual property in their own countries.

For those people how believe piracy has no significant impact on sales go and talk to any author who has had a pirate version of their software released, most will tell you sales dropped significantly afterwards. Not only that but support costs increase with the volume of installs.

Tony Edgecombe
Thursday, July 08, 2004

'Not only that but support costs increase with the volume of installs. '

do you spend a lot of time providing support for people with illegal copies of your software?!

muppet from madebymonkeys.net
Thursday, July 08, 2004

Sure developers do a good god but all software nowadays is outsourced to slave labor factories. The programmers doing the work don't see a dime of the outlandish prices teh software firms are charging. That's why I encourage everyone to pirate all the software they can - stick it to the corporate oppressors!

Only by doing this will the actual developers have a chance to break free and make a living doing on site consulting.

Devon Mills
Thursday, July 08, 2004

Sales are down! Must be pirates!

Sales haven't achieved marketing's crack smoking sales plan! Must be pirates!

OMG! Most of our customers' jobs have been offshored, and no one is buying our product! Must be Pirates!

It is easy to claim that piracy is a problem. It is almost impossible to prove that it. If you think casual copying is a problem, you haven't seen the SCO vs DaimlerChrysler suit: they are trying to enforce the "if you want to terminate this license you must...." clause for hardware/software that Chrysler scrapped 7 years ago. You should take a look at some of your EULAs to get an idea of what you would have to do, just to throw out old software, or be accused of piracy for failure to properly throw out old software.

When our family lived in Saudi, there were NO legitimate software stores in the kingdom. Everything sold was bootlegged. Some were even on those infamous Chinese CD-ROMs. Or you could save about 50% at those stores by bringing your own floppies.

Peter
Thursday, July 08, 2004

Software is way too expensive - pirating is necessary for teh economy to succeed. We have a 4 person consulting firm and we use some pretty high end tools that cost over $100,000 per license. That's just ridiculous so we have no choice but to pirate. Also, it enables us to offer much more lower consulting rates which provides the competitive advantage that is the foundation of the new global economy.

SK
Thursday, July 08, 2004

Have you ever wondered why you are cheaper than your competition?

Because they are at least honest people who pay for their software.

Peter Monsson
Thursday, July 08, 2004

"...SCO vs DaimlerChrysler suit..."

What?  Man, they are really reaching here.  Sounds like they are grasping at straws to retain even a shred of relevance.

Wow.

Aaron F Stanton
Thursday, July 08, 2004

Hey don't give me that, we are very honest! We just can't afford all the crazy prices of software and that's not OUR fault - that's teh price of teh companies that are pricing tools in the stratosphere. If these tools were a more reasonable price, like under $100, we would be more than happy to pay for them as long as there wasn't a less expensive alternative.

As far as our competitors go, if they don't want to be  competitive that's their own problem. None of our concern really.

SK
Thursday, July 08, 2004

I smell a troll.

muppet from madebymonkeys.net
Thursday, July 08, 2004


As a software developer, I consciously choose not to pirate stuff.  I did back in college, but I've ditched all of it now.

I also use Open Source Software.  I support (pay) for it by trying to make contributions back, reporting bugs, or even sending $$$.


I figure that if I want people to pay me for my skills, I'll pay for theirs.

KC
Thursday, July 08, 2004

"Software is way too expensive - pirating is necessary...we have no choice but to pirate...."

My consultants charge too much - so refusing to pay them is necessary to succeed. Our comapny uses some high end consulting programmers that cost $130 per hour. That's ridiculous. We have no choice but to refuse to pay the bill (or bounce a check). Also, it allows us to sell OUR software cheaper and provides teh competitive advantage that is the foundation of the new economy.  <g>

Mr. Analogy
Thursday, July 08, 2004

SK -

Sorry, but if the tools you *need* are $100K, then that's the cost of doing business.  Ante up, man.

If I hired someone to build an office building because their bid was good and found out they were using a stolen crane to lift things into place, you can bet I'd be pissed when they got arrested.

You are putting yourself into exactly that position here.  If the tools cost $100K there aren't a whole lot of people buying them, and the moment the supplier finds out you're using pirated copies, you can bet they'll come down on you with both feet.  Think you can avoid it?  If they are truly necessary, your very success will be a dead giveaway.  Then your clients will be really ticked.

If those specific tools are not absolutely necessary, then use something you can afford, like an open source alternative.  They might not be as good as the $100K tools, but you can build your business to the point where you can afford the good stuff.

Aaron F Stanton
Thursday, July 08, 2004

Mr. Analogy -

Bravo.  Well put.

Aaron F Stanton
Thursday, July 08, 2004

you guys are feeding the trolls

muppet from madebymonkeys.net
Thursday, July 08, 2004

I agree that some software is outlandishly priced...but you know what the best way is to put a stop to that?  STOP USING IT.  By pirating it, you are keeping it in circulation, giving it word of mouth advertising, and decreasing competition amongst vendors, which keeps the price of big-name software artificially high.  It's the "why buy Word Perfect when you can pirate MS-Word for free?" problem.

People should consider the cost-benefit ratio of the software they are evaluating, and pick a product that fits.  Think VS.Net is overpriced?  Maybe you can get what you need from Visual C# or VB.NET Standard for $109.

Joe
Thursday, July 08, 2004

Piracy helps big business. Big time. Anyone who knows India should know that movies are big. I mean really big business. And movies is politics and politics one big drama.

We have an anti-piracy module for CD-ROMs. We developed it in house for our Software but slowly made it into a product on its own. It got extended to Video CDs as well. We met Producers and Distributors of movies to push our service. VCD pircay costs the industry 3,500,000 last quarter alone.

BUT

It is a cartel of movie players that run this show. They put in the money and reap the benefits. Individuals make millions. They do not want piracy to end. Plus they get mindshare. Artistes and Producers get into each living room, in addition to their exposure through the idiot box. The financers burn their fingers and hope the next movie covers their losses from the Box Office receipts.

I think, Software Companies, the $ 100,000 - a licence - ones do not mind piracy, 'cause the big customers pay their costs off. The big ones pay because of (a) legal complusions, (b) it's not _their_ money - even the cheque signing authorities draw a salary, (c) they can afford it, (d) *their* customers are bigger. The smaller players pirate stuff and sell to the smaller customers, the numbers being just plain arbitary as no money flows the original Software Producer.

So 'A' Incorporated has a 100K product and sells to 50 customers. The revenue loss by piracy in theory may be 10M, if 100 others pirate it, but 'A' Inc's revenue of 5M covers their costs plus posts a profit plus ensures that, even if only 1% of the smaller ones grow, they get 10*100K extra.

KayJay
Thursday, July 08, 2004

Sorry. That should be 10%.

KayJay
Thursday, July 08, 2004

The theft rate on software licences is so high because people can get away with it. It is largely unrelated to cost. Most people (including businesses) pirate software (e.g. Office) that carries the price of a single business lunch. They spend more on their montly phone bill than on the whole of the software they use combined. They would also steal their phone minutes if it was as ridiculously easy and the chance of being caught * the consequences of being caught where as low as they are with software.

Just me (Sir to you)
Friday, July 09, 2004

"Software is way too expensive - pirating is necessary...we have no choice but to pirate...."

Hmmm... I could no longer justify the cost of my tools given the revenue being generated. Was I in competition with theives? Possibly, but I doubt it. Did I resort to theft? No, I did not. I recognized that my businesss was not viable as it existed and took steps to rectify that. In my case, I ultimately decided to just chuck the whole thing and go work for someone who knew how to run a business :)

Oh, and my employer doesn't steal any of the tools they need, and that includes software.

Ron Porter
Friday, July 09, 2004

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