Of all software installed in computers in this country last year, 43 percent were pirated, the same level as the past two years, according to a report released yesterday by the Business Software Alliance (BSA).
The figure is the third-lowest in Asia after Japan's 28 percent and Singapore's 42 percent, the BSA said in the report which was produced by the research firm International Data Corp (IDC).
Countries with the highest piracy rate were Vietnam, with 92 percent, Ukraine with 91 percent and China with 90 percent, BSA said.
The Washington-based BSA is a lobbying group representing the world's biggest software firms such as Microsoft Corp and Adobe Systems Inc.
The study showed that pirated software is spreading through the sale of counterfeit discs, illegal use of licensed products and faster Internet connections.
"Piracy is still most prevalent in countries and regions where the software market is growing as personal computing becomes more integral to work and daily life," said Martin Kralik, associate director of IDC's Asia-Pacific consulting division. "However, we have learned from places such as Taiwan that adopting policies to protect intellectual property is key to curbing piracy."
Kralik said Taiwan, once a high-piracy locale, has managed to significantly reduce its software piracy levels, with the government sending a strong message that it would not tolerate software piracy while at the same time working with the industry to launch educational campaigns.
Although the piracy rate remains unchanged, losses caused by pirated activities in Taiwan rose 15.8 percent to US$161 million last year from US$139 million the previous year, the report said.
Taiwan remains on the "Watch List" of intellectual-property-right (IPR) violators under the US' Special 301 Law this year.
The US Trade Representative's office lowered Taiwan's status from "Priority Watch List" this past January.
On average the piracy rate in Asia was 53 percent above the world's average of 35 percent, meaning software makers such as Microsoft Corp and Symantec Corp lost US$8 billion in sales in this region last year, from US$ 7.5 billion in 2003 because of currency movements and the growth of the Asian markets, the report said.
The study also found that without strong copyright laws and enforcement of those laws, online piracy -- via "warez" groups, spam, auction sites and peer-to-peer (P2P) systems -- poses a major threat to countries.
These types of piracy are also facilitated by increases in broadband penetration, since this enables users to send and download larger files such as software programs more quickly.
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