Software piracy rises to 27%

More than a quarter of software in the UK is illegal‚ new research shows.

Software piracy increased last year, representing 27 per cent of the UK market, according to the latest figures from the Business Software Alliance (BSA).

This was up from 26 per cent in 2007 and in line with the 27 per cent rate recorded over the previous three years.

Industry losses as a result of illegal software rose to their highest level on record at £1.49 billion, the data shows.

The BSA said the "unacceptably high" rate of piracy is harming both the IT industry and intellectual property rights holders.

It is also undermining efforts to place the UK at the forefront of the digital revolution, the organisation added.

John Gantz, chief research officer at the BSA, said the cost of software is one factor driving piracy forward. However, he said that the global recession is also likely to have an impact this year.

Referring to an IDC study released in January last year, the BSA said that £6 billion in economic growth could be generated by cutting software piracy by ten per cent in four years.

The group is therefore calling on the government to support a regulatory approach to the intellectual property issue and to develop a code of practice between internet service providers and rights holders.

It also wants to see the establishment of a new body tasked with enforcing piracy law and educating businesses and consumers.

Alyna Cope, a spokesperson for the BSA UK country committee, said: "With more than one in four software installations categorised as illegal in the UK, we cannot afford to give up the fight against software piracy."

BSA data shows that the software piracy rate worldwide is 38 per cent and is highest in Central and Eastern Europe and Latin America, at 68 per cent and 65 per cent respectively.