Microsoft Play Fair Day reveals $1.6bn of harm for BRIC manufacturers
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Manufacturing companies in Brazil, Russia, India and China (BRIC) that use illegal software are stealing more than $1.6 billion from their competitors that play fair by using genuine software.
That's today's (17 November 2011) message from Microsoft Corp, which has released the findings of a study that attempts to point up the financial impact of using illegal software in developing countries.
Microsoft's Play Fair Day is a global initiative aimed at emphasising the importance of using legitimate software, and the Microsoft-commissioned study effectively quantifies the anticompetitive disadvantage that software piracy inflicts on businesses that 'play fair'.
Analysts from Keystone Strategy evaluated the unfair competitive advantage enjoyed by companies that practice widespread piracy. In China, for example, it finds that manufacturers that use legal, licensed software suffer a competitive disadvantage of about $837 million, compared with firms that illegally slash costs and use pirated software.
This translates into the opportunity for pirating firms to increase profits or reinvest in their businesses – estimated to be equivalent to constructing 66 major manufacturing plants, buying 12,700 plastic injection moulding machines or hiring 217,000 additional employees.
Meanwhile, in Russia, where manufacturing accounts for 16% of GDP, those who play fair are disadvantaged to the tune of more than $575 million over a five-year software lifespan.
"This research quantifies the harm unfair competition causes in emerging markets," comments David Finn, associate general counsel for worldwide anti-piracy and anti-counterfeiting at Microsoft.
"And this is not just a problem that harms businesses in emerging markets," he continues. "On November 4, the National Association of Attorneys General in the US announced that 39 Attorneys General sent a letter calling for stronger federal enforcement against companies around the world who use stolen IT to gain an unfair business advantage, and who seek to sell their products in the United States."
Speaking for those who do play fair, Bharat Somany, a director at Hindusthan National Glass & Industries (HNG), says: "I do like to have a good night's sleep, which I wouldn't be able to do if I was stealing something.
"Transparency is something that starts vanishing pretty quickly when you [pirate]. Not only do you hide from others, but you end up having things in your own company that are hidden from you. There is no accountability when you go in for pirated software."
