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ExtraTorrent.cc > Articles > BSA Study Stuck to Wrong Argument

BSA Study Stuck to Wrong Argument

BSA Study Stuck to Wrong Argument

Added: Tuesday, September 28th, 2010
Category: Recent Headlines Involving File Sharing > Current Events
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2010, www.extrattorrent.com
BSA (Business Software Alliance) has published the results of its new study that claims reduction in the level of software piracy by 10% in 4 years would cause a 10% rise in spending on legal products. However, the observers point out that it’s impossible to suggest that every pirate would choose to pay for the original product if they fail to get it free.

The BSA has a long record of claiming the pirates are responsible for everything. Its recent study, called “The Economic Benefits of Reducing Software Piracy,” is made in the same vain. It was earlier this year when Business Software Alliance claimed that the pirates are responsible for $51 billion in software losses worldwide. The organization blamed the emerging markets for decreasing sales.

The problem of the BSA is that it keeps using a wrong methodology when determining the rate of the piracy. The Alliance simply takes the number of licensed software units purchased in the given country and divides it into the total number of computers existing in the country. Besides, for countries that weren’t surveyed, the BSA used some “emerging market measure” to figure out a piracy rate. Worse still, the $51 billion figure it claims doesn’t consider the fact that most piracy comes from poor countries where people just can’t afford to buy licensed software as it sometimes equals to their month salary.

Now they claim that if the piracy rate is reduced by 10% in 4 years (2.5% a year), it would lead to $142 billion additional revenue, meaning about 500,000 new jobs and over $30 billion in tax additional revenues. That would be great if the study wasn’t sticking to the questionable 1:1 lost sale argument, suggesting that the people will surely buy licensed product if fail to find a pirated one. However, everyone understands it’s unlikely to happen. Most probably people will turn to open source software or just refuse the idea of having it, so $51 might be $31 or $11.

Another thing that has to be pointed at is “new” jobs and revenue the Alliance expects. They can’t be new at all, as people and money don’t come from nowhere, at least in time of economic downturn, – if people have to spend more on software, they will have to spend less on something else and cut jobs there. The only result can be a shift in demand rather than creating new demand.

The BSA does great researches, but needs to assess things adequately to accomplish its goal.

September 28th, 2010

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Date:  Tuesday, September 28th, 2010

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