Software piracy cost the Irish software industry almost $40 million (€42 million) last year with illegal copies accounting for almost half of all business software programs installed in the Republic, according to new research.
The worldwide survey shows that the Republic had a software piracy rate of 42 per cent in 2001, an increase of 1 per cent on the previous year.
This is the seventh annual survey on software piracy carried out on behalf of the Business Software Alliance (BSA), an organisation that represents the world software industry.
It found piracy was on the increase globally for the second year in a row, growing from 37 per cent in 2000 to 40 per cent in 2001. This translates to losses of almost $11 billion worldwide last year. A quarter of these occurred in western Europe.
The results have raised concerns in the Irish software industry.
According to Mr Julian McMenamin, chairman of BSA Ireland: "Year on year, since the BSA has been active in Ireland, the piracy rate has decreased. To see an upturn now is extremely disappointing.
"Our reputation as a legitimate business base for global computer companies is being seriously undermined.
"Ireland must reduce its piracy rate dramatically to bring itself below the EU average and protect its image and economic future. Intentional and careless licence abuse by Irish companies must stop now."
Western Europe has a piracy rate of 37 per cent, the second- lowest after North America, but the BSA warns against complacency.
"Software piracy continues to present an alarming problem to the economies of western Europe, robbing them of jobs, VAT and tax revenues in every country," according to Ms Beth Scott, vice- president of the BSA in Europe.
She called on the European Union to "take bold measures in its forthcoming Enforcement Directive to combat the escalating problem of piracy in Europe through tougher legislation".
Six world regions were examined in the survey - western Europe, eastern Europe, North America, Asia-Pacific, Latin America and the Middle East and Africa. Eastern Europe has the highest piracy rate in the world, at 67 per cent, while North America has the lowest.
The survey was conducted by an independent research firm, International Planning and Research Corporation, on behalf of the BSA.
It used shipment figures from BSA member companies along with market research to compare the demand for new software application with the legal supply of these applications. Various business applications such as databases, desktop publishing and programming tools were included in the survey.
