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January 23, 2008 7:12 PM PST

Piracy killed the radio star, insists the BSA

by Matt Asay
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(Credit: Data compiled from IDC by Ars Technica)

It turns out that all of the world's problems could be resolved by stamping out piracy, or so goes the story from the Business Software Alliance. The BSA--"Be prepared (to intimidate people into slobbering submission)"--never met an alleged software pirate that it didn't hate, and believes that piracy has a huge negative impact on the global economy, including the U.S. economy, as Ars Technica reports. In fact, it paid (commissioned) IDC to come up with the following numbers:

If the amount of software piracy in the U.S. were to be reduced by 10 percentage points over the next four years, IDC believes the end result would be $41 billion in economic growth, $7 billion in additional tax revenues, and the creation of over 32,000 new jobs. In countries with higher rates of piracy, the impact would be even greater.

Maybe, maybe not. The real question for the BSA is this: since the software industry apparently can't solve the piracy problem by of small and medium-size businesses based on tips from disgruntled ex-employees, perhaps it would do better to encourage its members to go open source, obviating the incentive (and ability) to pirate software.

After all, if you're giving the software away anyway, there's nothing left to pirate. It's impossible to pirate support or services (like Red Hat Network). These involve moving parts. They're not just bits. They're service. Service can't be pirated.

But no, the BSA exists to propagate the 20th century's mode of selling software. I don't agree with piracy. I think it's wrong. But I also believe that the BSA's numbers are both inflated and overly optimistic. Let's say the BSA was able to force the full price of Microsoft Windows on the people of Indonesia. Does this necessarily mean they would all pay?

No. Instead it likely means that they'd be priced out of the market and would end up using open-source alternatives.

In sum, perhaps we need the BSA to do its job well. Doing it well would lead to more open source. Or changing its job to focus on upgrading its members' business models would do the same. The one thing that doesn't work is trying to force the world back into the 20th century. At least, not in the ineffective way that the BSA currently pursues this goal.

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can follow Matt on Twitter @mjasay.
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by chuckjuhl January 23, 2008 8:55 PM PST
Exactly Right. If Microsoft products (and Macintosh) for that matter) were not so easy to pirate, those doing most of the pirating would switch to Linux and open office. One reason Microsoft was able to kill off CP/M was because DOS boot disks were not copy protected and CPM boot disks were. Microsoft did not become the biggest software company because it had technically superior software. Until very recently, MS has paid little more than lip service to copy protection. I hope that the BSA and its members can develop a copy protection scheme that stops ALL piracy. That will be the start of the slow death of the "shrink wrap" license and the blossoming of Open Source. Paid support will get much better as well, as it will be the focus instead of an afterthought.

BSA, I wish you great success in achieving your goal of eliminating the piracy of "shrink-wrap" software licenses. God Speed!!
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by atomicspin January 23, 2008 9:07 PM PST
i don't see how piracy is hurting an economy. The BSA keeps pulling money in from software companies, which creates jobs. Software companies hire additional programmers to fight hackers. IDC probably made a boatload off of the BSA to do their report.

Sounds like money's still moving to me.

I also wish that people would stop even talking about *anything* the BSA says, even when it's patently ridiculous. They're no different than the dinosaurs at the RIAA and the less press they get the more obsolete they'll become.
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by seo2seo January 24, 2008 2:46 AM PST
So long as the Anti-Piratists conduct their whole campaign on the basis of persecuting *users* , then they'll get no sympathy from me. Remember that many of those who buy the stuff did not do so knowingly - but they are still treated like criminals while the Pirates get away free - virtually every time.

It's just the same with DVDs (as any Ebayer will tell you); it's even true with cigarettes; In my area they spend a fortune attacking buyers of 'contraband' cigarettes, while the sellers are at the same place, day in and day out, making a fortune, untouched. Indeed, when the story periodically hits the headlines, the TV news crews know exactly where to go.

When these pathetic anti-pirate organisations show some willingness to, er, fight piracy, then I'll care.
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by mikele11111 January 24, 2008 5:10 AM PST
First, don't steal software...I don't condone that, but I never met an industry association that wasn't a bigger liar than anybody it criticized.

To say their study is flawed would be a generous comment. There is no proof whatsoever that backs their numbers up. It's all theoretical and based on assumptions that have little validity outside the realm of their thinking. It makes further assumptions about the economic multiplier, people's behavior and what would be done with revenue from software sales...key word being a form of "assume"

With the lies and distortions of facts that we have seen lately from groups like the RIAA and the selective prosecution of those most vulnerable and least able to defend themselves versus those most guilty of stealing there is no credibility for such claims and "studies".

They are pathetic liars who can;t be trusted or believed, but the worst part is that they are buying off your congressman with campaign contributions and lobbyists to get what they want. while most of us sit idly and do nothing.
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by MyRightEye January 24, 2008 9:06 AM PST
Open source is now more than software too. Look at this:

From:http://www.opensourcetrack.com/

Welcome to the Open Source Track (OST) initiative

OST is about bringing freedom of creativity to musicians and their music. The artist of an OST track has agreed to make some or all of their tracks open source, or at a greatly reduced copyright control. This means that not only can you download the fully produced track for free, but the track's written score, guitar tab charts and the pre-mixed individual instrument tracks. OST tracks may be used for any non-commerical purpose without additional license. The artist retains the copyright to their music, and still collects royalties if the song is used commercially. Live performance of OST tracks does not count as commercial use.

Budding musicians can forget about sidestepping around copyright issues when swapping music and guitar tabs by using OST tracks. OST tracks may be performed live, remixed and freely distributed, and derivatives of OST tracks may be used in your own compositions.
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by daDebil February 3, 2008 11:21 PM PST
The first major flaw I see is the assumption that those who use bucaneered software would buy the real thing. If a significant portion of those users are people who cannot afford to buy legal copies, the software industry hasn't 'lost' anything. You can't lose a sale that would never have been made in the first place. To the contrary, they may even benefit from piracy in the form of free advertising.
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About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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