Software Piracy Up in 2001 After Declines

Software piracy grew last year, breaking a six-year string of progress by software companies in stamping out illegal use. Enforcement efforts by software makers have resulted in 44 settlements with U.S. companies in 2002.

A report by the Business Software Alliance, which includes companies such as Microsoft Corp., Apple Computer Inc. and Adobe Systems Inc., attributes the shift to growing computer markets in countries that traditionally have high piracy rates, such as Vietnam, China and India. Twenty-five percent of business software programs in the United States were pirated in 2001, a percentage point increase from the previous year. The worldwide piracy rate jumped from 37% in 2000 to 40% in 2001, costing the industry about $11 billion.