In 2013, the Asia Pacific region had the world’s highest rate of unlicensed PC software installations at 62%, resulting in an estimated US$21 billion in lost revenue, according to the BSA Global Software Survey.

The Middle East and Africa followed closely with a rate of 59%, mirroring Central and Eastern Europe. Latin America also reported 59%, while North America and Western Europe had lower rates at 19% and 29% respectively. Globally, the average rate of unlicensed software installations was 43%.

The BSA highlights that the primary reason for users worldwide avoiding unlicensed software is to mitigate security risks, particularly malware infections. Globally, 64% of users express concern over unauthorized access by hackers, and 59% are worried about potential data loss.

Despite IT managers globally acknowledging the risks associated with unlicensed software, less than half are fully confident in their organization’s software license compliance. BSA’s findings reveal that only 35% of companies have implemented formal policies mandating the use of licensed software.

“While users recognize the potential for malware and security vulnerabilities from unlicensed software, many don’t take proactive measures to protect themselves or their organizations," says Roland Chan, BSA Senior Director of Compliance Programs, Asia Pacific. “This lack of attention to software compliance is alarming, especially considering the increasingly threatening global cybersecurity landscape.”

A recent report from the Economist Intelligence Unit found that over 75% of organizations experienced a security incident within the past two years, leading to significant system disruptions or breaches involving the loss or theft of sensitive data. Symantec, a BSA member, designated 2013 as the “Year of the Mega Breach," reporting a 62% surge in data breaches compared to the previous year. Alarmingly, eight of these breaches each exposed over 10 million identities.

Chan emphasizes, “For organizations to thrive, effectively managing and optimizing their software assets is critical to maximizing value and minimizing risks.”

The BSA’s Global Software Survey highlights several key findings:

• Progress was observed in most Asia Pacific economies, including China, which saw a decrease in unlicensed PC software installations from 77% in 2011 to 74% in 2013. 
• However, the overall rate of unlicensed installations in the region increased. This rise is attributed to the growth of major markets where unlicensed software use significantly exceeded the regional average.
• A similar trend emerged in the Middle East and Africa, with the regional rate increasing from 58% in 2011 to 59% in 2013.
• Yemen recorded the highest rate of unlicensed software installations at 87%, while the UAE had the lowest at 36%. Despite having a significantly higher rate of unlicensed software, the commercial value of unlicensed software in Yemen amounted to US$9 million, compared to US$230 million in the UAE. This discrepancy highlights the difference in types of software used in each country. Notably, Turkey had the highest commercial value of unlicensed software in the Middle East and Africa region, reaching US$504 million in 2013.
• A similar pattern was observed in Japan and Bangladesh, where Japan reported the lowest rate of unlicensed software installations at 19%, while Bangladesh had the highest at 87%. However, the commercial value of unlicensed software was US$1.3 billion in Japan, compared to US$197 million in Bangladesh. China had the highest commercial value of unlicensed software in the Asia Pacific region, reaching almost US$8.8 billion in 2013.

The complete BSA’s Global Software Survey is accessible here. Real-time data on threat attempts can be found here.

*Graphs from BSA.