Siobhan Carroll calls on the government to support action against software piracy

While the well-documented growth in music and film piracy over recent years is an issue that nearly everyone is now aware of, many do not appreciate the impact piracy and counterfeiting have on other creative industries. The software, manufacturing and publishing industries are also among the worst affected by a problem that cost the UK an estimated £11billion in 2003, according to the Alliance Against Counterfeiting and Piracy.

According to technology research firm IDC, 29 per cent of software in the UK is now illegal representing losses of almost £1 billion to the software industry. The vast majority of this, something like 95 per cent, is a result of businesses (of all shapes and sizes) not being properly licensed for the software they are using. Software is a productivity tool that enables UK businesses to innovate and grow, yet companies do not manage software like other valuable business assets.

The software and related industries are also major contributors to employment and economic prosperity. IDC found that a 10 point reduction in the UK software piracy rate over four years would generate an additional 40,000 jobs and a further £2.5 billion in tax revenues. Clearly this is an issue that needs to be addressed.

Increasingly, the perception is that the government needs to do more to support right holders and protect the UK economy. Trade and industry secretary Patricia Hewitt stated that there was a requirement for the government to get behind the creative industries. The recent launch of the Creative Industries Forum on Intellectual Property, by ministers Estelle Morris and Lord Sainsbury, is a step in the right direction and we would applaud the work by Labour MEP Arlene McCarthy who has campaigned for effective implementation of the EU's intellectual property (IP) rights enforcement directive. However, the piracy problem is now so deeply rooted within modern society that it is not going to be resolved overnight.

According to research carried out by YouGov on behalf of the Business Software Alliance (BSA), almost half (44 per cent) of 18 to 29-year-olds in the UK possess pirate or counterfeit goods. This figure, which compares with 28 per cent for 30 to 50-year-olds and only 17 per cent for over 50s, suggests piracy is becoming increasingly prevalent within modern society. While the survey illustrates that piracy is a problem across UK society in general, it also reveals the emergence of a "pirate generation" that is more able to justify buying pirated goods and less likely to consider copyright law or the harm to creators before doing so.

Copyright is an incentive to creators - it means that they can be rewarded for their works. Without copyright, companies can’t protect their work, investors won’t invest and innovators won’t invent. Copyright encourages creativity and enables more consumer choice.

So how can we begin to tackle such a problem? The BSA and other right holders invest significant resources in educating the public about the value of IP and fighting piracy. We would like governments to recognise the contribution of the creative industries by undertaking initiatives that engender respect for their intellectual property, in addition to endorsing industry campaigns. For example, in conjunction with the BSA, the Irish government is involved in the Netrespect programme which provides teachers with information on IP and the rights and responsibilities of internet usage.

In addition to educating society, it is also vital that the government fosters the appropriate legislative environment that will provide the deterrents needed to discourage the production, distribution and consumption of pirate and counterfeit goods. Specifically, we believe that a robust UK implementation of the EU enforcement directive could help to deter businesses from using illegal software as well as those that make and sell illegal software, some of whom have connections with parties involved in organised crime. Civil ex parte searches - required under the World Trade Organisation's TRIPS agreement - are inordinately expensive to pursue in the UK, making it difficult to catch infringers. At the same time, damages awards are such that it is often cheaper to pirate than to obey the law. In this environment, pirates are willing to take the (small) risk that they will get caught and if caught, treat damages as a cost of doing business.

If the government is serious about making Britain the creative hub of the world it must realise that eliminating piracy will require sustained education campaigns to encourage good citizenship and respect for IP as well as provide the appropriate deterrents for those who are currently happy to take the risk in order to save money.

Siobhan Carroll is the Northern Europe regional manager at the Business Software Alliance

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