World to have $1.78 trillion worth pirated products
Paris: Growing use of pirated and counterfeit products would take their total value globally to USD 1.78 trillion (over Rs 80 lakh crore) by 2015 and the menace would badly hurt investments and tax revenues of India and other major economies, a global study has said.
As per the study conducted by Business Action to Stop Counterfeiting and Piracy (BASCAP), the total worth of counterfeit and pirated products is likely to more than double from an estimated USD 455-650 billion in 2008 to approximately USD 1.22-1.77 trillion in 2015.
Estimates suggest that software piracy rate in India is around 65 per cent, which means 65 out of 100 software products being used in the country are pirated.
In the entertainment industry also, nearly 600 million pirated movie DVDs are sold in India every year, as against just 20 million original ones and close to USD 1 trillion is lost due to piracy every year.
On the other hand, a survey conducted by Microsoft late last year showed that the majority of Indians were ready to shell out more money for genuine software and also believe that original software is more secure and stable.
"… A number of G-20 economies may be missing out on higher FDI as a result of concerns over IPR (Intellectual Property Rights) enforcement. The lost investment could give rise to additional tax losses of more than USD 6.25 billion across the G-20," found the BASCAP study.
International trade in counterfeit and pirated products is alone projected to be worth between USD 770-960 billion by 2015, said the global group working against piracy.
Product counterfeiting and piracy is estimated to cost G -20 governments and consumers more than USD 125 billion every year. India is a part of the G-20, an influential grouping of developed and developing countries.
The G-20 economies lose approximately USD 77.5 billion in tax revenues and higher welfare spending, USD 25 billion on increased costs related to the crime and USD 18.1 billion on the economic cost of deaths resulting from product counterfeiting, among other things, it added.
The report was released at the Global Congress on Combating Counterfeiting & Piracy.
According to experts, there should be increased cooperation between governments and law enforcement agencies to fight the menace of rising piracy and counterfeiting.
Going by a report released at the ongoing Global Congress on Combating Counterfeiting & Piracy here, the revenue that will be lost by companies on account of piracy of digital products is expected to amount to USD 80 to 240 billion by 2015.