Microsoft considers beneficial for Ukraine to reduce use of pirated software, Yurii Omelchenko, head of the department for protecting intellectual property of the Microsoft Ukraine company, said.
“It is essential that the country itself benefits from reducing piracy in the software industry,” according to Omelchenko.
Based on the data provided by the IDC analytical firm at the request of the International Alliance of Software Manufacturers (Business Software Alliance), Microsoft predicts an USD 88 million revenue to the state budget and GDP growth of USD 586 million through a 10-percent reduction in pirated software by late 2013.
Provided a 10-percent reduction occurs in the first two years of a four-year period, GDP will grow by USD 755 and the budget will receive USD 116 million.
Dmytro Shymkiv, Microsoft-Ukraine director general, emphasized on Ukraine’s good capacities to reduce the level of software piracy.
He cited IDC survey data saying that 85% of software installed on personal computers in Ukraine in 2009 was pirated.
Shymkiv also said that the ripple effect of piracy is beyond the scope of the software industry depriving local distributors and service providers the opportunity to invest in creating new jobs and to generate tax deductions.
“Operations with licensed software — sales, service and maintenance — is a very important source of income for the entire IT industry,” he noted.
Yurii Handziuk, director for the Atlantic Records, board chairman of the All-Ukrainian Copyright Agency, noted that for domestic software producers fight against software piracy is a matter of industry survival.
“Vulnerability of legal owners and impunity of manufacturers of pirated goods are destroying the software industry in Ukraine “, he said.
According to Handziuk, companies invested heavily in software development, create jobs and pay taxes, but the activity of pirates leads to the situation where the invested funds do not generate profits that makes cease development and reduce staff.