According to a new study, 90 percent of businesses using a Microsoft product in China are using pirated software. This seems to be the case in most developing countries, the study further noted. In Brazil, manufacturers save $186 million a year by not paying to use software. In Russia, that number is $115 million, and, in China, it is $837 billion. Altogether, companies in developing countries save $2.9 billion through software piracy.
Law enforcement officials throughout the United States have been urging the Federal Trade Commission (“FTC”) to take action against manufacturers that use pirated software. They want the FTC to penalize companies that use this software and then sell the products back in the US. These companies, law enforcement and technology companies argue, hurt American manufacturers and companies back in their own countries.
The study and its findings were a part of Microsoft’s Play Fair Day last month, which is an initiative to raise awareness of the impact that software piracy has on businesses in developing countries. Companies that legitimately purchase software are at a disadvantage in countries like China, where so many of their competitors are saving money by not paying for important software. Whereas the honest companies pay for software licenses, the companies using pirated software are able to use that money on building facilities, buying machinery or hiring more workers.
Software piracy has negative consequences both here in the US and in developing countries. Has your company been the victim of piracy? Were you able to do anything to put an end to it?
Klein Trial Lawyers – Los Angeles business litigation lawyers