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The Economist angers BSA

p2pnet.net News:- Britain’s The Economist has questioned the veracity (to be polite about it) of BSA statements which claimed losses down to counterfeits had increased from $29 billion to $33 billion, as we pointed out last month.

We’d previously believed the BSA (Business Software Alliance) used the same Number Dreamers employed by the movie and record label cartels to produced loss and other statistics. But No, said The Economist in BSA or just BS?

“The association’s figures rely on sample data that may not be representative, assumptions about the average amount of software on PCs and, for some countries, guesses rather than hard data,” it said. “Moreover, the figures are presented in an exaggerated way by the BSA and International Data Corporation (IDC), a research firm that conducts the study. They dubiously presume that each piece of software pirated equals a direct loss of revenue to software firms.

“To derive its piracy rate, IDC estimates the average amount of software that is installed on a PC per country, using data from surveys, interviews and other studies. That figure is then reduced by the known quantity of software sold per country-a calculation in which IDC specialises. The result: a (supposed) amount of piracy per country. Multiplying that figure by the revenue from legitimate sales thus yields the retail value of the unpaid-for software. This, IDC and BSA claim, equals the amount of lost revenue.”

What was the BSA’s response?

Sir, steamed BSA spokeslady Beth Scott.

Your article on software piracy was extreme, misleading and irresponsible (‘BSA or just BS?’, May 21st). The headline was particularly offensive. The implication that an industry would purposely inflate the rate of piracy and its impact to suit its political aims is ridiculous. The problem is real and needs no exaggeration.

Beth Scott
Business Software Alliance
London

So there! (Stamps foot)

See:-
pointed out - BSA Shock Horror loss report, p2pnet, May 26, 2005
BSA spokeslady - Software piracy, June 9, 2005

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9 Responses to “The Economist angers BSA”

  1. Reader's Write Says:

    BSA once sent me an official letter, threatening my business with a spontaneous audit and demanding I join up to their audit scheme for a cost. Made libellous allegation that my companies had pirated software and that they had the right to inspect all of my computer systems.

    If thats not BS I don’t know what is……

    They would be breaking several UK and EU laws on privacy,data protection etc. etc.

    Extortion using intimidation, Al Capone style….

  2. Reader's Write Says:

    We’d love a few more details and to see a copy of the letter.

    Cheers!

  3. Reader's Write Says:

    Actually, It was a few years ago, the letter was from FAST “federation against software theft” see http://www.fast.org.uk/ for the junk they peddle. They have directors who were with BSA. I binned the letter.

    They assume everyone is a thief and demand money to prove your’e not.

  4. Reader's Write Says:

    …which proves that THEY are thieves !

  5. Reader's Write Says:

    OK : )

    I thought it might make a story and if you’d like to take this a bit further, you can get me at jon[at]p2pnet.net

    Cheers!

  6. Reader's Write Says:

    The problem is quite common and costly. A few years back Public Works and Government Services Canada were audited by Microsoft. It cost PWGSC approximately $700,000 of Canadian taxpayer money just for government time/etc to count office suites and operating systems, only to find out they were in compliance.

    I strongly believe the only way to avoid the protectionist tactics of the BSA and regional “software manufacturing” lobby groups is to switch away from “software manufacturing” entirely to competitors such as Free/Libre and Open Source.

    “Make it legal: don’t litigate, use creative licensing” campaign
    http://www.flora.ca/makelegal200403.shtml

  7. Reader's Write Says:

    You hit this one on the head. Without running Microsucks, using free open source software, they have no foot to stand on. Many countries are re-examining the need to run Microsucks products in favor of other OS’s such as Linux. Simply the need to audit is removed from the process when they don’t use those products that require substancial investment to buy, upgrade, and maintain.

    We won’t mention the that such software is far less likely to contain spyware, get infected with viruses and trojans, or have as many security flaws.

  8. Reader's Write Says:

    IF the BSA were to come to my business or home to “inspect” my network, then I would insist on inspecting their search warrant. If they did not have one and tried to come in by force, then I will make the natinal news. BSA auditors were shot and killed by a ….. If I get the electric chair for protecting my home or business, or am called a “Nutcase” then so be it.

  9. Reader's Write Says:

    HYPOCRITES!

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