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One Percent Ri se i n Use of Properl y Li censed
Software woul d add US$739 Mi lli on Boost to
Indi as Economy, New BSA Study Finds
Licensed software delivers over twice the economic
benefit of pirated software to the country
New Del hi 21 May 2013 A new study from BSA | The Software Alliance and INSEAD,
one of the worlds leading business schools, finds that increasing the use of properly
licensed software would have a greater impact on the economy in [India than allowing
similar growth in the use of pirated software.
A 1 percent increase in use of licensed software would generate almost US$1.3 billion in
national production, compared to US$554 million from a similar increase in pirated software
meaning properly licensed software would deliver US$739 million in additional economic
value. Competitive Advantage: The Economic Impact of Properly Licensed Software is a
groundbreaking analysis that draws on data from 95 economies of which 15 are from the
Asia-Pacific to demonstrate the benefits to national economies of using fully licensed
software. The study confirms that increasing use of licensed software corresponds to
substantial positive gains in gross domestic product (GDP), and that the economic stimulus
effect of properly licensed software is significantly greater than that of pirated software.
Using properly licensed software reduces risk and creates operating efficiencies that go
directly to the bottom line for enterprises, said Yolynd Lobo, BSAs Director, India. This
study confirms that licensed software is not just good for firms it is an important driver of
national economic growth. Government, law enforcement, and industry in India should take
every opportunity to reap these potential gains by reducing piracy and promoting use of
properly licensed software.
News Release

The study also finds that each additional dollar invested in properly licensed software has
an estimated return on investment (ROI) of US$75. This compares to a US$19 return from
each additional dollar worth of pirated software put into use.
Among the studys other findings:
Increasing the amount of licensed software used in the Asia-Pacific by 1 percent
would add US$18.7 billion to the regional economy, compared to US$6 billion from
pirated software, meaning a US$12.7 billion difference.
Increasing licensed software use globally by 1 percent would inject an estimated
US$73 billion into the world economy, compared to US$20 billion from pirated
software a difference of US$53 billion.
Every economy included in the study saw greater economic returns from properly
licensed software than from pirated software.
On a dollar-for-dollar basis, the return on investment from using properly licensed
software is greatest in developing economies US$437 in extra GDP, on average.
Still, economies across all income levels benefit: each additional dollar invested in
licensed software has an average ROI of US$117 in high-income economies and
US$140 in middle-income economies.
Previous studies have shown that value-added services delivered with properly licensed
software help firms to reduce costs and increase their productivity. This report goes one
step further to ascertain the impact of software use on national production, said Eduardo
Rodriguez-Montemayor, senior research fellow at INSEAD eLab. The results make it clear
that licensed software is beneficial for business and national economies and that
licensed software has a greater economic impact than pirated software across all
economies included in the study.
Governments and enterprises wanting to embrace the economic opportunity presented by
licensed software use should take action in the following areas:
Establish strong and modern intellectual property laws that protect software and
other copyrighted materials on PCs, mobile devices, and in the cloud.
Step up enforcement of intellectual property rights with dedicated resources.
Raise public awareness about the risks of software piracy.
Lead by example by using only fully licensed software and implementing software
asset management programs.
A full copy of the study: Competi ti ve Advantage: The Economi c Impact of Properl y
Li censed Software is available for download on BSAs website:
www.bsa.org/softwarevalue.


About BSA
BSA | The Software Alliance (www.bsa.org) is the leading global advocate for the software
industry. It is an association of world-class companies that invest billions of dollars annually
to create software solutions that spark the economy and improve modern life. Through
international government relations, intellectual property enforcement and educational
activities, BSA expands the horizons of the digital world and builds trust and confidence in
the new technologies driving it forward.
For information about the BSA brand, and how it appears in print, click here.


About INSEAD eLab
As one of the worlds leading and largest graduate business schools, INSEAD brings
together people, cultures and ideas from around the world to change lives and transform
organizations. eLab is INSEADs center of excellence in the global knowledge economy. A
key objective of INSEAD eLab is to strengthen links across academia, business leaders
and policymakers by: drawing on a variety of global resources to develop research insights
that are academically rigorous and relevant to private and public sector leaders.
Information on INSEAD eLab, including other research reports, can be found at
insead.edu/elab.