Software piracy and copyright protection

Abstract

The computer software industry represents a remarkable economic success story and an incredible engine for improving productivity and creating jobs. According to a recent study by Economists Incorporated, from 1982 to 1990, the value added to the US Gross Domestic Product as a result of software publisher's contributions increased at an annual rate of 16.4 percent. For the ten year period from 1982 to 1992, the software industry grew by 269 percent in real terms, while the remainder of the economy grew by about 30 percent. The three components of the "core" software industry-custom computer programming services, prepackaged software, and computer integrated design-now account for nearly $40 billion in value added to the US Economy. Software is now larger than most manufacturing industries in the United States. Employment in the US software industry has been growing at a rapid pace. The software now employs over 420000 people. Since 1987, software employment has risen at an annual rate of 6.6 percent. Although the United States has a significant piracy problem, this extraordinary economic success is due in large part to the relatively low US piracy rate (approximately 35%), and consequent opportunities for software developers to invest and reinvest in a rapidly growing industry.<>