Microsoft Highlights Competitive Disadvantage Due to Software Theft

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Microsoft Corp. Has released the findings of a first-of-its-kind study that tackles the financial impact using illegal software has on the competitive landscape within developing countries.

Software piracy causes more than US$2.9 billion of competitive disadvantage per year across manufacturers in Latin America, Central and Eastern Europe and the Asia-Pacific region. Specifically, manufacturing companies in Brazil, Russia, India and China (BRIC) that choose to use illegal software steal more than US$1.6 billion from their in-market competitors that opt to play fair by using genuine software.
 
In support of Play Fair Day, a global initiative to emphasize the importance of using legitimate software, this Microsoft-commissioned study quantifies the anti-competitive harm software piracy inflicts on businesses that play fair and examines the broader economic impact of software piracy. As part of this study, analysts from Keystone Strategy evaluated the unfair competitive advantage gained, effectively stolen, by companies that practice piracy. In China specifically, manufacturers that "play fair" with legal, licensed software suffer a competitive disadvantage of about US$837 million per annum compared with companies that illegally slash costs and use pirated software.
 
 
In Hong Kong, to encourage a level playing field for companies in the market, Microsoft has been supporting various initiatives to promote the use of genuine software in the business sector. As part of the company's ongoing anti-piracy effort, Microsoft initiated a free Software License Review Service for Hong Kong's small and medium-sized enterprises (SMEs), and in 2011 alone
Microsoft has supported more than 2,500 local SMEs to do free license health checks to help them mitigate risks related to using pirated software such as data security risk and criminal liability from software piracy.
 
"We are happy to see the continually improving results over past five years achieved from our efforts to protect customers from risks associated with using pirated software and to help create a level playing field for all companies," said Peter Yeung, general manager of Microsoft Hong Kong.
 
Since Microsoft first introduced this Software License Review Service to local SMEs at the end of 2008, the adoption of this service among SMEs has increased by 14 times, which indicates a heightened awareness among businesses about the importance of using genuine software.
 
In support of the Business Software Alliance in Hong Kong (BSA), Microsoft also supported the BSA's Bounty Hunter Campaign, launched in August this year. Any member of the public has a chance to receive an instant cash reward of HK$1,000 if they report to the BSA an organization in Hong Kong which is suspected of using unauthorized software in the course of its business, and additionally a final lead reward of up to HK$500,000.
 
 
Microsoft's efforts extend from businesses themselves to education, as awareness of the importance of genuine software is essential. For broader education, Microsoft Hong Kong has rolled out a first-of-its-kind social media campaign, including an interactive viral video series, to further promote the anti-piracy message. There were over 26,000 views in the first month of the video campaign roll-out.