1% rise in licenced software use can add $1.3b to GDP: Study
Mumbai: A mere one percent increase in licenced software usage can generate almost USD 1.3 billion in economic output compared to USD 554 million from a similar increase in pirated software intake, reveals a study.
"While 1 percent increase in use of licensed software would generate almost USD 1.3 billion in national production, a similar increase in pirated software consumption would generate USD 554 million, meaning properly licenced software would deliver USD 739 million in additional economic value.
"Therefore, it’s clear that increasing use of properly licenced software can have a greater impact on the domestic economy than allowing similar growth in the use of pirated software," report said today.
The study titled 'Competitive advantage: The economic impact of properly licensed software' analyses data from 95 countries to demonstrate the benefits to their national economies by using fully licenced software.
"The study confirms that increasing use of licenced software corresponds to substantial positive gains in GDP, and that the economic stimulus effect of properly licensed software is significantly greater than that of pirated software," BSA India director Yolynd Lobo said.
The Business Software Alliance (BSA), a lobby group representing software product companies, estimates that software makers lost nearly USD 3 billion or about Rs 16,150 crore in 2011 in India as Indians prefer to illegally copy software rather than pay for it.
Comparable loss in the US was about USD 9.7 billion and USD 9 billion in China.
In 2011, the piracy percentage in the country stood at 63 percent.
The study also finds that each additional dollar invested in properly licensed software has an estimated return on investment of USD 75 against USD 19 in case of pirated software.