KPMG survey says software firms losing billions due to piracy

KPMG, the US audit, tax and advisory firm, has said that illegal and unlicensed software installations continue to be a significant problem and source of revenue loss for software companies worldwide.

In fact, 55 per cent of the executives estimated their firm's revenue loss at greater than 10 per cent of total revenue, says a recent survey by KPMG.

In India, too, the picture is grim with 50 per cent of software being pirated.

The KPMG study found out that 87 per cent of the executives claimed revenue loss due to unlicensed users.

"Executives of software companies are struggling to find answers to combat unlicensed software use. Some firms are either not executing their compliance programs or need them analysed or overhauled," said Arpinder Singh, executive director, KPMG in India.

"Effective compliance programmes do help firms recoup revenue and maintain strong customer relationships," Singh added.

The KPMG study found that 64 per cent of software publishing executives indicated that their companies have a programme designed to ensure customer compliance with software license agreements. And 36 per cent said that they do not have compliance programmes.

Singh believes that in India also the picture is quite grim as almost 50 per cent software is pirated.

"One of the major problems in India is the weak law enforcement and awareness. Though a number of companies have started software compliance programme but we still need to go a long way," Singh said.

He said that several leading practices were revealed through our survey that can be applied by software publishers to help recover lost revenues, strengthen software license controls, and improve business relationships with major institutional customers.

KPMG surveyed 50 executives from software publishing companies collectively represented almost 50 per cent of total industry revenue. Twenty-eight per cent of those who responded are with companies earning five billion dollars or more in software revenues. (ANI)

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