Software Piracy Estimated at $11.4 Billion

The U.S. software industry lost $11.4 billion in revenue worldwide last year due to illegal copying of programs such as Microsoft Corp.’s Excel and Adobe Systems Inc.’s Illustrator, according to a study released Tuesday by two industry groups.

The study, by the Business Software Alliance and the Software Publishers Assn., found that almost half of all newly installed business programs were pirated.

In the United States, 27% of software was pirated, resulting in an estimated $2.8 billion in lost revenue, the study found. In China, 96% of software was pirated, with losses totaling $1.4 billion.

In compiling the estimates, the researchers assumed that all people who illegally copied software would otherwise have purchased the same product, an assumption some economists dispute.