increasing global software piracy rates

oftware piracy is a worldwide phenomenon. In 2001, the Business Software Alliance (BSA) [1] found there are no nations with less than a 20% piracy rate, and two that exceeded 90% (see Figure 1). It is estimated that in 2001 software manufacturers lost $10.97 billion globally as a result of software piracy [1]. Furthermore, in most regions of the world, piracy increased by 37% in 2000 and by 40% in 2001 (see Figure 2). After showing a decrease for several years, software piracy appears to be on the rise. The literature offers few explanations for the growth in software piracy. While a Software Publisher’s Association (SPA) study [1] found that per-capita income is not an issue in software piracy growth, Shin et al. [9] found evidence that the high price of software is a driving force in piracy in low GNP nations where residents cannot afford highpriced software. They noted that an increase in per-capita GNP is associated with a decrease in piracy rates. Other factors have also been suggested, including availability of pirated software, less stringent implementation of copyright regulations [8], moral problems with the copyright enforcement, the degree of IT infrastructure, and access to the Internet [3]. In this article, we introduce an approach consistent with previous research [4, 8, 9]. We also suggest some additional factors that may help explain software piracy growth and examine what changes in piracy rate determinants, if any, have taken place over the years.