Texas Identified as Software Piracy Hotspot

Houston and surrounding area tops Dallas-Ft. Worth as the state's most active
region for illegal software use

WASHINGTON, Oct. 29 /PRNewswire-USNewswire/ -- The Business Software Alliance
(BSA), the voice of the world's commercial software industry, has identified
Texas as a national hotspot in terms of reports of illegal software use and is
urging individuals across the state and in the Houston area specifically to
report the use of pirated software by businesses to NoPiracy.com.

In conjunction with the online software piracy reporting network at
NoPiracy.com, BSA also maintains the manned 1-888-NO PIRACY hotline.
Individuals can confidentially offer information on unlicensed software use as
well as register to claim rewards of up to $1 million. Since 2008, BSA has
paid a total of $220,650 in rewards for verifiable tips of software piracy.
Despite the rewards program, many opt not to take the reward, citing their
motivation as simply "to do the right thing."

Reporting by the general public over the past nine months shows that the state
of Texas is a top five hotspot for reports of illegal software use with a
large portion coming from the Houston area. Dallas-Ft. Worth was a close
second in terms of reports of software piracy, while the Austin and San
Antonio regions were a distant third and fourth.

"This is the first time BSA has identified specific U.S. states as 'Software
Piracy Hotspots,' although our records over the last years have shown that
Houston has consistently been active in terms of illegal software reports,"
said Jenny Blank, Senior Director of Legal Affairs for BSA. "Our analysis of
the trends suggests two things: First, given the number of leads from
Southeastern and central Texas, people in the state are obviously quite
concerned about this issue and don't like the idea of local companies using
what amounts to stolen software products. Second, there are clearly a lot of
companies in Texas who are not concerned that they are breaking the law and
are willing to take the risks associated with that decision. For many
companies, such blatant disregard for the law has proven costly."

Each year, BSA receives on average over 2,500 reports of software piracy from
across the country. The majority of the reports come from current or former
employees who had information related to the unlicensed software activity.

According to the Sixth Annual BSA-IDC Global Software Piracy Study, the retail
value of unlicensed software installed in 2008 -- representing revenue losses
to software companies -- was estimated at $9.1 billion in the United States
and $53 billion worldwide.

The national average software piracy rate in 2008 was 20%, meaning that one in
five pieces of PC software installed in the United States was unlicensed.
Texas' rate however is also 20% according to the 2007 State Piracy Report
released last year and also conducted by IDC. While in line with the national
average, the rate is still dismally high given the cost of piracy to the
economy.

Software piracy in Texas cost software vendors an estimated $627 million,
which is the third-highest figure of the eight states included in the study.
Lost revenues to a wider group of Texas software distributors and service
providers cost an additional $1.7 billion, which is, for example, enough to
hire more than 9,200 tech workers. The lost state and local tax revenues --
$223 million -- would also have been enough to fund the hiring of more than
4,000 experienced police officers. These are significant economic losses
especially in light of the troubled economy.

Reducing piracy brings tangible economic benefits to the local IT industry and
local communities. For every $1 of PC software licensed, there is another $3
to $4 of revenues for local service and distribution firms, as well as tax
revenues to support local services, according to the BSA-IDC Global Software
Piracy Study.

"Staggering economic losses like these clearly appear to resonate with many
individuals in Texas who have decided to come forward and confidentially
report instances of unlicensed software use in their organizations," said
Blank.

Financial Risks
Businesses found to be using unlicensed software may be required to pay
thousands of dollars in damages to BSA. A company found using unlicensed
software and violating copyright laws could pay damages of up to $150,000 for
each software title copied. If convicted, violators can be fined up to
$250,000 per title or given a jail term of up to five years, or both.

When BSA receives a tip about a company using pirated software, it typically
contacts the company and asks it to conduct an audit of its software assets.
If unlicensed software is found, the next step is for both parties to work
toward a resolution that involves immediate legalization of software.

Security Risks
Pirated software can also pose security risks to the users' networks and
computers. Company computers can be infected with trojans, viruses, malware,
and other threats, and this in turn can expose sensitive data and personal
information of employees and customers. As companies and government agencies
have found, having confidential information exposed to outsiders is costly and
can put an organization's reputation at risk.

Tools & Resources to Ensure Compliance
BSA works with businesses to help ensure that their company isn't at risk of
the financial, technical, and legal risks associated with illegal software. In
addition to the educational and self-audit resources provided online at
www.bsa.org, BSA has partnered with the U.S. Small Business Administration to
educate up to 100,000 small businesses on software licenses, copyright laws,
tips on how to purchase safe and legal software online, and how to develop an
SAM program.

Businesses trying to determine whether their organizations are using
unlicensed software can download the free software audit tools at
www.bsaaudit.com.

Please visit our Facebook page under keyword Business Software Alliance (BSA)
Anti-Piracy.

About BSA
The Business Software Alliance (www.bsa.org) is the foremost organization
dedicated to promoting a safe and legal digital world. BSA is the voice of
the world's commercial software industry and its hardware partners before
governments and in the international marketplace. Its members represent one
of the fastest growing industries in the world. BSA programs foster
technology innovation through education and policy initiatives that promote
copyright protection, cyber security, trade and e-commerce. BSA members
include Adobe, Apple, Autodesk, Bentley Systems, Corel, CyberLink, Dassault
Systemes SolidWorks Corporation, Embarcadero, McAfee, Microsoft, Minitab,
Quark, Quest Software, Rosetta Stone, Siemens, Sybase, Symantec, and The
MathWorks.

SOURCE Business Software Alliance

Matthew Clark, +1-202-320-8748, matthew.clark@fd.com, for Business Software
Alliance