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Table 4: Software piracy rates <strong>and</strong> losses by country*<br />

Piracy rates** Losses ($M)<br />

2006 2005 2004 2006 2005 2004<br />

Albania 77% 76% 77% $11 $9 $7<br />

Bosnia <strong>and</strong><br />

Herzegovina<br />

Access, piracy <strong>and</strong> culture: the implications of digitalization in Southeastern Europe<br />

68% 69% 70% $14 $13 $12<br />

Bulgaria 69% 71% 71% $50 $41 $33<br />

Croatia 55% 57% 58% $62 $51 $50<br />

Greece 61% 64% 62% $165 $157 $106<br />

Macedonia 69% 70% 72% $10 $9 $8<br />

Moldova 94% 96% - $56 $44 -<br />

Montenegro 82% 83% 83% $6 $9 $8<br />

Romania 69% 72% 74% $114 $111 $62<br />

Serbia 78% 80% 80% $59 $95 $85<br />

EU 36% 36% 35% $11,003 $12,048 $9,786<br />

*Table is based on the 2006 Global Software Piracy Study (IDC).<br />

** “Piracy Rate is the total number of units of pirated software put into use in 2006 divided by the total<br />

units of software installed.<br />

Losses: The retail value of pirated software is calculated using the size of the legitimate software<br />

market <strong>and</strong> the piracy rate. The actual formula is: Value of Pirated Software=(Legitimate<br />

Market)/(1-Piracy Rate)-Legitimate Market” (BSA, 2006: 17-18).<br />

As can be seen from Table 4, the software piracy rates in the SEE region are rather<br />

high, ranging from 55% to 96%, which is far above the EU average of approximately<br />

35-36% in the 2004-2006 period. This indicates that a large amount of participants in<br />

the digital arena within the region are connected using pirated software platforms.<br />

Concerning the sector of cultural goods – the International Intellectual Property<br />

Alliance (IIPA) data on motion pictures, records <strong>and</strong> music business software <strong>and</strong><br />

entertainment software estimated trade losses due to copyright (Lange, 2004: 5). It<br />

showed that for the year 2004, Bulgaria was on the Priority Watch List <strong>and</strong> Romania<br />

on the Watch List, while Bosnia <strong>and</strong> Herzegovina, Moldova <strong>and</strong> Serbia <strong>and</strong><br />

Montenegro were on the Special Mention List. In the 2007 report only Bulgaria <strong>and</strong><br />

Romania appear on the Watch List. 12<br />

12 Countries on the Priority Watch List do not provide an adequate level of IPR protection or<br />

enforcement, or market access for persons relying on intellectual property protection.<br />

Countries on the Watch List merit bilateral attention to address the underlying IPR<br />

problems (bilateral meaning US <strong>and</strong> country in question), <strong>and</strong> the Special Mention List<br />

contains countries of specific interest for US intellectual property (see: IIPA data, accessed<br />

2008).<br />

79

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