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2008 BSA YEAR IN REVIEW Global Scale, Global Voice, Global Influence: YEAR ONE OF BSA’S FIVE-YEAR STRATEGIC PLAN

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2008 BSA YeAr in review

Global Scale, Global Voice, Global Influence: YeAr One Of BSA’S five-YeAr StrAtegic PlAn

B U S i n e S S S O f t w A r e A l l i A n c e

MeMBerS

worldwide and Policy council

Adobe

Apple

Autodesk

Avid

Bentley Systems

Borland

CA

Cadence Design Systems

Cisco Systems

CNC Software / Mastercam

Corel

CyberLink

Dassault Systèmes Solidworks

Dell

EMC

HP

IBM

Intel

Intuit

McAfee

Microsoft

Monotype Imaging

PTC

Quark

Quest Software

SAP

Siemens

Sybase

Symantec

Synopsys

The MathWorks

(through December 31, 2008)

regional and local

ACCA Software

Agilent Tech

Altium

Andal Software

Ansoft

Aquafold

Arm

Attachmate

Babylon

Bamboomedia

Bitdefender

Check Point Software

ECOSA

Enteo Software GmbH

Esteem Innovation

Famatech

GECAD Software

Graphisoft

HiT Internet Tech

INAZ

Intergraph

Kepler-Rominfo

LINKService S.p.A.

LMS International

Logo

Mamut

Managesoft Gmbh

Materialise Software

Microstar BV

Mindjet

Minitab

National Instruments

O & O Software

Orbotech (Frontline PCB)

Panda Software

Ringler-Informatik

Romsym Data

Rosetta Stone

SAS Institute

Scalable Software

SGS

Softline

SIIC

Softwin

SPSS

SSP Grupo Sage

Staff & Line

Synplicity International

Syscom

Tekla

Thai Software Enterprise

Trend Micro

UBS Corporation

Zahir

tA B l e O f

cOntentSCEO Letter 02

Executive Summary 03

Global Initiatives 06

Asia-Pacific 08

Europe, Middle East, and Africa 12

Latin America 16

North America 20

Internet 24

02 2008 BSA yeAr in review

CEO LETTERBSA Continues To Deliver Value To Its Members And Progress To The World

In today’s fast-paced, globally connected society, computers and software are not just for office workers and students — they are indispensable tools of everyday life, woven deeply into the fabric of modern society. Information technology drives innovation and productivity across the entire economy, helps us be more efficient at work, and makes our lives easier and more fun at home.

IT also offers solutions to almost every economic and social challenge, from knitting together our diverse population to saving energy, fighting disease, enhancing health care, educating our youth, and ensuring public safety.

At the same time, there are numerous obstacles that prevent society from making greater use of IT to solve our various challenges. For example, the current global economic downturn is lowering demand for software and computers in many markets. Software piracy cost the IT industry an estimated $48 billion in 2007, draining resources that could have been invested in jobs and innovative

products. Cyber criminals are more potent and organized than ever. Rising barriers to international trade are raising prices for consumers and limiting their options.

These are just a few of the issues being addressed every day by the Business Software Alliance (BSA). BSA serves as the voice of the world’s leading software companies and their hardware partners in dialogue with governments and other stakeholders. BSA works to promote a long-term legislative and legal environment in which the software industry can prosper, so that software can contribute to the prosperity and security of all people.

BSA is the largest and most international IT industry group, with policy, legal and/or educational programs in 80 countries. While several of BSA’s initiatives are global in scope, most of its efforts are led and conducted at the national level, with a growing emphasis on emerging economies.

BSA’s member companies are some of the most innovative companies in the world (see inside front cover), investing billions of dollars a year in local economies and delivering software solutions trusted by billions of customers worldwide.

All of us in the IT industry are committed to helping lawmakers and the public understand the key issues facing our sector, as well as intelligent strategies for dealing with them, so that we in turn can help make the world more productive, connected, and secure.

The following report recaps the many ways that BSA pursued and accomplished its Strategic Plan goals in 2008. We would welcome your comments and questions.

robert Holleyman President and CEO

BSA promotes conditions in

which the software industry can

prosper, so that software can

contribute to the prosperity

and security of all people.

The BSA’s efforts are guided by a five-year Strategic Plan, of which 2008 was Year One. The Strategic Plan has three primary objectives:

• global Scale: BSA will continue to support the growth of legal software markets and fight software piracy on a global scale, with special attention to the world’s top and emerging PC software markets.

• global influence: BSA will continue to build its global influence, working with many partners to foster pro-innovation public policies; and

• global voice: BSA will continue to serve as the global voice of the leading companies in the software industry.

The following is a summary of BSA’s activities in these three areas in 2008.

global Scale • record anti-piracy efforts:

BSA fights software piracy and seeks to expand legal software markets through a combination of

investigations and legal actions, public awareness-raising, and promotion of software asset management (SAM). Almost 15,900 end-user enforcement actions were initiated by BSA worldwide, an increase of 14 percent over 2007. In the Internet anti-piracy program, BSA sent more than 1.9 million takedown notices to Internet service providers targeting peer-to-peer software distribution, and we shut down 39,146 online auctions that were offering more than 216,000 unlicensed member software products.

• total worldwide enforcement actions: Almost 15,900 end-user enforcement actions were initiated by BSA worldwide, an increase of 14 percent over 2007.

• world-class SAM initiative: Software asset management (SAM) is the business practice of optimizing the purchase, installation, utilization, maintenance, and replacement of all software assets within an organization. Organizations adopt SAM for several reasons, including avoiding legal problems, saving

money and time, and reducing security risks. In 2008, BSA developed BSA SAM Advantage, a long-term effort to help companies move more easily toward lasting adoption of the SAM standards published by the International Organization for Standardization (ISO).

global influence • legislative victories in the

US: In the United States, BSA helped secure passage of the identity theft enforcement and restitution Act, which gives law enforcement agencies new tools and authorities to prosecute cyber criminals. BSA also helped win US House passage of balanced patent reform legislation, forging consensus and moving the bill closer to final passage.

• greater influence in eU, russia, Poland: BSA played a key role in European security, privacy, and interoperability debates and hosted the second European Security Awareness Day. To the East, BSA made significant forays in policy advocacy in Russia

2008 BSA yeAr in review 03

ExECUTIVE SUMMARY

and Poland and cosponsored a series of successful seminars for Russian judges and prosecutors.

• fostering innovation in Asia: In addition to national-level policy advocacy in more than a dozen Asian countries, BSA organized a regional innovation forum in Singapore that was attended by more than 100 high-level officials from 10 countries. BSA President and CEO Robert Holleyman represented the industry in several visits to India, South Korea, and China, where BSA forged stronger relationships with senior leaders and, in China, opened the door to a Memorandum of Understanding to help state-owned enterprises adopt software asset management practices.

• new partnerships in latin America: In Brazil, BSA began active discussions with the local software association ABES to

establish a joint Policy Task Force; and laid the groundwork for the 2009 Technology and Innovation Summit in Sao Paulo. In Mexico, BSA forged a closer partnership with the Mexican IP enforcement office; began talks toward a collaboration agreement with the Mexican National Autonomous University (UNAM); and cosponsored the First Global Summit on IP and the Judiciary, which drew 10 delegations of judges and executive branch officials from around the world.

global voice • Membership growth: In 2008,

BSA continued a five-year trend of growing its overall membership. Corel, CyberLink, Quark, and Quest Software joined as Worldwide Members, and Intuit joined as a Policy Council

Member. BSA also grew its membership in top and emerging markets, adding new members in Mexico, Thailand, Indonesia, Turkey, and Russia. At year’s end, BSA’s members included 30 of the Global Top 100 software companies, with 64 percent of the total revenue of that group.

• Preparing for change: 2008 also was a year of laying the groundwork for influence in the new US presidential administration and Congress. BSA discussed its “Principles of Economic Leadership” with advisers to the leading presidential candidates and subsequently saw its messaging echoed in the tech policy statements of candidates John McCain and Barack Obama.

04 2008 BSA yeAr in review

B S A’ S t O P A n d e M e r g i n g

MArketSemerging markets:

•Indonesia•Mexico•Poland•Thailand•Turkey

top markets:

•Brazil•China•India•Russia

The BSA 2008-2012 Strategic

Plan identifies nine “top”

and “emerging” markets

for special attention.

BSA welcomed corel, cyberlink, intuit, Quark, and Quest Software as members in 2008, bringing total membership to 85.

2008 BSA yeAr in review 05

BSA is at work in 79 markets worldwide — more than any other it industry group.

PAnAMA 74% | $22

PArAgUAY 82% | $13

PerU 71% | $75

PUertO ricO 44% | $33

trinidAd & tOBAgO Unk | Unk

UrUgUAY 69% | $23

venezUelA 87% | $464

kAzAkHStAn 79% | $110

lAtviA 56% | $29

litHUAniA 56% | $37

MAcedOniA 68% | $11

MAltA 46% | $7

MOldOvA 92% | $43

MOntenegrO 83% | $7

netHerlAndS 28% | $502

nOrwAY 29% | $195

POlAnd 57% | $580

rOMAniA 68% | $151

rUSSiA 73% | $4,123

SerBiA 76% | $72

SlOvAkiA 45% | $54

SlOveniA 48% | $39

SOUtH AfricA 34% | $284

SPAin 43% | $903

Sweden 25% | $324

tUrkeY 65% | $365

UAe 35% | $94

UkrAine 83% | $403

United kingdOM 26% | $1,837

SOUrce: fiftH AnnUAl BSA-idc glOBAl SOftwAre PirAcY StUdY, MAY 2008, www.BSA.Org/glOBAlStUdY

LATIN AMERICA ArgentinA 74% | $370

BrAzil 59% | $1,617

cHile 66% | $187

cOlOMBiA 58% | $127

cOStA ricA 61% | $22

dOMinicAn rePUBlic 79% | $39

ecUAdOr 66% | $33

el SAlvAdOr 81% | $28

gUAteMAlA 80% | $41

HOndUrAS 74% | $8

JAMAicA Unk | Unk

MexicO 61% | $836

nicArAgUA 80% | $4

APAC AUStrAliA 28% | $492

BAnglAdeSH 92% | $92

cHinA 82% | $6,664

HOng kOng 51% | $224

indiA 69% | $2,025

indOneSiA 84% | $411

JAPAn 23% | $1,791

MAcAU Unk | Unk

MAlAYSiA 59% | $311

PHiliPPineS 69% | $147

SingAPOre 37% | $159

SOUtH kOreA 43% | $549

Sri lAnkA 90% | $93

tAiwAn 40% | $215

tHAilAnd 78% | $468

vietnAM 85% | $200

NORTH AMERICA cAnAdA 33% | $1,071

United StAteS 20% | $8,040

EMEA ArMeniA 93% | $8

AUStriA 25% | $157

AzerBAiJAn 92% | $50

BelgiUM 25% | $223

BOSniA 68% | $13

BUlgAriA 68% | $63

crOAtiA 54% | $68

cYPrUS 50% | $14

czecH rePUBlic 39% | $161

denMArk 25% | $193

eStOniA 51% | $20

finlAnd 25% | $160

frAnce 42% | $2,601

gerMAnY 27% | $1,937

greece 58% | $198

HUngArY 42% | $125

irelAnd 34% | $106

iSrAel 32% | $121

itAlY 49% | $1,779

country | 2007 Pc Software Piracy rate | 2007 Piracy losses $M

06 2008 BSA yeAr in review

global Piracy StudyAnti-Piracy Battleground Shifting To Emerging Markets

Although piracy of software on personal computers declined in many countries in 2007, fast-growing PC markets in some of the world’s highest piracy nations caused overall numbers to worsen — a trend that is expected to continue. Moreover, global dollar losses from piracy rose by $8 billion to nearly $48 billion.

These were among the findings of the “Fifth Annual BSA-IDC Global Software Piracy Study” released in May. Of the 108 countries included in the report, the use of pirated

software dropped in 67, and rose in only eight. However, because the worldwide PC market grew fastest in high-piracy countries, the worldwide PC software piracy rate increased by three percentage points to 38 percent in 2007.

The report documented that the software industry is making progress in the battle against PC software piracy. But it also shows the battleground is now shifting to emerging markets, where many of the most serious challenges remain.

global it competitiveness StudyReport Shows Intense Competition Among Nations

In September, BSA and the Economist Intelligence Unit, the business information arm of The Economist Group, released “How Technology Sectors Grow: Benchmarking iT industry Competitiveness 2008,” the second annual report of its kind. This report assessed and compared the IT industry environments of 66 economies to determine how well each supports IT sector success. According to the study, the United States continues to rank

GLOBAL INITIATIVESMost of BSA’s activities are conducted at the national level in almost 80 countries around the world. However, several of BSA’s signature initiatives are global in scope.

first in the world, but its overall score drifted downward slightly, while three economies — Taiwan, Sweden, and Denmark — moved into the top five for the first time, and other economies narrowed the gap with the United States.

The study is based on a country-by-country analysis of six factors that combine to create a sound environment for the IT sector, including an ample supply of highly skilled workers; an innovation friendly culture; world-class technology infrastructure; a robust legal regime that protects intellectual property; an open, competitive economy; and government leadership that strikes the right balance between promoting technology and allowing market forces to work. Those economies that perform well in these six “competitiveness enablers” generally are home to high-performance IT industries.

BSA uses this annual study as a key vehicle in communications with policymakers on what they need to

do to make their IT sectors an engine of growth and development. The study also helped educate wider audiences on IT policy issues though 892 media mentions worldwide.

BSA SAM Advantage Groundbreaking Effort Will Deliver Multiple Benefits

Software asset management (SAM) is the business practice of optimizing the purchase, installation, utilization, maintenance, and replacement of all software assets within an organization. In November, BSA unveiled BSA SAM Advantage. BSA developed the intellectual property underpinning this program, which is designed to help companies move more easily and efficiently toward lasting adoption of globally recognized SAM standards. Once fully launched and implemented, the benefits of BSA SAM Advantage will include improved license compliance, better IT performance, and lower overall IT costs. BSA SAM Advantage is unique among all SAM programs in that it is the only

initiative built on the basis of global standards issued by the International Organization for Standardization (ISO), including official cooperation with the responsible ISO/IEC working group. In addition, it will be the only SAM program sponsored by a not-for-profit association; recognized and supported by many of the world’s leading software companies; and delivered in a consistent fashion by a variety of professional partners, resellers, and practitioners. BSA SAM Advantage is a “train-the-trainer” online course that will be taught to enrolled partners and practitioners. After receiving a certificate of completion, graduates will have the information and resources to instruct their own clients and end users, and promote their alignment to the ISO standard supported by BSA’s members. BSA will pilot the course in several locations in 2009 and will fully launch the program in 2010.

2008 BSA yeAr in review 07

BSA SAM Advantage is the only SAM initiative based on

the ISO global standards; sponsored by a not-for-profit

association; supported by many of the world’s leading

software companies; and delivered consistently to many

professional partners.

ASIA-PACIFICSafe and legal Software‘B4USurf’ Educates Students; SAM Promoted In Region

In the first half of 2008, BSA launched the “B4USurf” campaign in Singapore, Taiwan, China, Malaysia, and Philippines, targeting youth aged 13-18 years. The campaign’s objectives were to raise young people’s awareness of the potential dangers of the Internet and how to surf safely and responsibly. A campaign Web site was launched that included a teaching module for teachers and information for parents. BSA hopes to convince governments to integrate cyber-wellness and cyber-ethics into school curricula.

Software Asset Management (SAM) outreach remains a priority in the Asia-Pacific (APAC) region. BSA SAM programs in China, Hong Kong, Japan, Philippines, Singapore, Taiwan, and Thailand communicate the message that proactive SAM can reduce piracy, risks, and IT costs.

In China, BSA launched a microsite on the homepage of zol.com.cn, a site popular with Chinese IT professionals, featuring SAM resources targeted at the enterprise sector. The goal of the microsite was to assist enterprises with software audits and implementations of SAM. This was the first online platform to provide consolidated information, training materials, and other resources to support enterprise legalization.

BSA launched an Enterprise Legalization Campaign in six cities in China with local Copyright Administration offices and the China Software Association. The campaign activities included an electronic direct mailer campaign, six legalization training sessions and post follow-up activities.

In Hong Kong, BSA continued its successful partnership with the Genuine Business Software Campaign with SAM contractors, having been commissioned by the Hong Kong

government to provide free on-site professional consultancy services to participating companies.

Japan had a remarkable year for SAM engagement. The Abridged BSA Assessment Program was designed to increase awareness of SAM among private universities, which had not participated in the previous university campaign. A direct mailer was sent to the presidents, managers, and IT centers of more than 3,000 private universities.

enforcementEnd-User Enforcement Actions Up Sharply

To help combat software piracy and promote an environment that encourages innovation and competition, the BSA has programs in 15 APAC countries, with offices in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, Taiwan, and Thailand. BSA

08 2008 BSA yeAr in review

also has representatives in Bangladesh and Sri Lanka. BSA’s staff works closely with BSA member committees in each country to implement enforcement and marketing campaigns with support from outside PR agencies and local counsels.

BSA conducts anti-piracy programs in Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam. By the end of 2008, end-user leads regarding suspected software piracy were up 11 percent over 2007. Enforcement actions included cease and desist (C&D) letters, self-audit letters, administrative actions, mediations, civil actions, and criminal actions primarily targeting end-user piracy.

Notable Progress In Vietnam, and Sri Lanka

There was notable progress in Vietnam, where BSA was involved in the establishment of the Partnership in Protection of Software Copyright with the Vietnam Software Association, the Inspectorate of the Ministry of Culture, Sports and Tourism, and the Copyright Office of Vietnam.With raids planned for the first time in Sri Lanka, BSA is well

positioned to continue to expand its enforcement program in APAC.

PolicyBSA Hosts Regional Forum; Nations Act On IP Issues

In September, BSA organized a regional innovation forum in Singapore, hosted by BSA President and CEO Robert Holleyman and supported by the Singapore government through the Infocomm Development Authority. The event featured 20 distinguished speakers and attracted more than 80 participants from 10 countries, including ministerial and director-general level officials. BSA Board Member Brad Smith of Microsoft gave the keynote presentation. In advance of the forum, BSA commissioned the Economist Intelligence Unit (EIU) to conduct a study on technology parks and commissioned the French business school INSEAD to conduct a study on Asia policy issues. Another study conducted by the EIU with BSA support, “How Technology Sectors Grow: Benchmarking IT Competitiveness 2008” (see “Global Initiatives,” above), was launched worldwide at the Singapore forum. In addition, BSA conducted government and media roundtables

in China, India, Japan, Philippines, Singapore, South Korea, Taiwan, and Thailand to discuss the EIU global IT competitiveness study and relevant policy issues. In conjunction with this study, BSA prepared country-specific reports recommending specific steps government should take to enact or improve existing legislation. These papers were utilized in BSA’s meetings with top government officials.

HOng kOngThe Hong Kong government issued its preliminary proposals for strengthening copyright protection in the digital environment. BSA filed official comments on these proposals, focusing on the right of communication; caching by online service providers (OSPs); voluntary code of practice for OSPs; revised additional damages provision; criminal liability pertaining to unauthorized downloading and peer-to-peer (P2P) file sharing activities; and media-shifting activities.

2008 BSA yeAr in review 09

Piracy Snapshot: ASiA-PAcific regiOnAl PirAcY rAte (2007): 59%

lOweSt: new zeAlAnd, 22%

HigHeSt: BAnglAdeSH, 92%

MOSt iMPrOved: vietnAM, dOwn 7 POintS Since 2003 tO 85%

www.bsa.org/globalstudy

JAPAnIn Japan, the government issued an interim report examining whether to expand exceptions to copyright for decompilation for interoperability and security purposes; BSA filed comments on the relevant issues. BSA also commented on a government report concerning Japan’s potential introduction of fair use provisions and countermeasures against illegal content distribution in its copyright law.

PHiliPPineSThe Philippines ratified the World Intellectual Property Organization (WIPO) treaties several years ago, and legislation to implement the treaties is pending in the Philippine House and Senate. BSA took a leading role in urging the government to consider this priority legislation. BSA was very active and sent letters to the sponsors of the bills, the chairs of the committees with jurisdiction, and the president urging action. In addition, BSA fought equally hard against legislation that would establish

a preferential policy for government procurement of open source software.

SingAPOreBSA used the US-Singapore Free Trade Agreement (FTA) reviews to drive discussions on our long-standing requests to strengthen criminal end-user penalties and introduce whistleblower protection. In 2008, BSA recommended that an alternative to strengthening penalties could be changing the way charges are filed to the Singapore government. BSA also suggested possible alternatives to a

10 2008 BSA yeAr in review

cHinAIn May, BSA hosted an interagency Chinese delegation visit to the United States to examine software asset management (SAM) and best practices relevant to China’s government and enterprise legalization programs. BSA leveraged this visit to strengthen ties with the State-Owned Assets Supervision and Administration Commission (SASAC), which oversees state-owned enterprises (SOEs) and their subsidiaries. In a visit to China in October, Robert Holleyman proposed that BSA and SASAC establish a Memorandum of Understanding (MOU) to assist SOEs in implementing SAM and strengthening their use of IT. The vice minister of SASAC was receptive to this idea, and BSA will seek to utilize BSA SAM Advantage when the MOU is finalized.

During the October trip to Beijing, Robert Holleyman also spoke at the 2008 International Copyright Forum, sponsored by WIPO and the National Copyright Administration of China (NCAC), and met with senior Chinese and US government officials to discuss a range of policy issues.

Back in Washington, Robert Holleyman hosted a dinner for BSA member company executives and China’s Ambassador to the US, Zhou Wenzhong. The dinner was the first in a planned series with key members of the diplomatic community, with the goal of

discussing issues of mutual concern and strengthening ties between members and foreign officials.

Also in 2008, BSA conducted 12 SAM training seminars in eight cities in partnership with the NCAC, including one organized with SASAC specifically for SOEs.

Meanwhile, BSA filed a series of submissions on proposed amendments to the Chinese patent law and registered concerns with the US government about the potential direction of China’s indigenous innovation strategy. BSA’s concerns were discussed in meetings of the US-China Joint Commission on Commerce and Trade (JCCT), the Strategic Economic Dialogue (SED), and the US Ambassador’s Seventh Annual IPR Roundtable in Beijing.

indiARobert Holleyman visited India in early 2008 to speak at a major international forum on innovation, creativity, and IP, and to meet with government officials to discuss important policy issues, including India’s need to amend its copyright law to implement the World Intellectual Property Organization (WIPO) Copyright Treaty and the introduction of special IP courts to provide greater efficiency in criminal IP cases. Dialogue with key government officials continued throughout the year in various meetings and forums, including a WIPO IP forum in Goa, which was supported by BSA.

Top & Emerging Markets: APAC PrOgreSS MAde in fOUr PriOritY MArketS

stand-alone whistleblower law, such as providing administrative protection.

SOUtH kOreABSA worked actively in South Korea to preserve the effectiveness of the enforcement program in the face of pending legislation to drop the complaint requirement, a move linked to that country’s efforts to implement the non-ratified US-South Korea FTA. BSA met regularly with key South Korean and US government officials, both in Washington, DC, and Seoul. In October, Robert

Holleyman traveled to South Korea to meet with several vice ministers and US Ambassador Kathleen Stephens on a range of issues.

tAiwAnTaiwan made great progress in 2008, particularly with the formation of an Intellectual Property (IP) Court. The formation of an IP Court shows Taiwan’s commitment to intellectual property rights and bringing violators to justice. Also, after three years of discussion between the government, Internet service providers (ISPs), and

copyright associations, the Executive Yuan approved a bill to introduce ISP liability in the copyright law. The Legislative Yuan completed the first reading of the bill toward the end of the year, and the law may be finally adopted in 2009.

2008 BSA yeAr in review 11

BSA is also leading an effort to constitute a Copyright Working Group with the Indian Federation of Chambers of Commerce and Industries (FICCI) to lobby for stronger copyright legislation. A notable development this year was the successful launch of a joint campaign between BSA and the State of Karnataka for software legalization. This marked the first time the government had joined with BSA in a campaign. Also this year, BSA joined the US-India Business Council and is participating in the US-India Joint Working Group on ICT.

indOneSiAThe Indonesian government has been active in encouraging the use of licensed software in its various agencies, including the National Police. The Ministry of Education has procured thousands of PCs with licensed software to be distributed to rural areas throughout the country.

In May, BSA co-hosted a seminar with the US Commercial Service for about 50 public prosecutors on software piracy. In June and July, BSA and the National Police hosted two seminars in Bandung, West Java, on corporate end-user piracy. These seminars were attended by more than 125 police officials, prosecutors, judges, and civil investigators. Later in the year, BSA partnered with the National Police to launch a campaign to respect copyrights in Bandung and Medan. The campaign called on businesses to invite BSA to undertake a software

audit and, in return for a successful audit, BSA would provide one-year immunity against BSA-initiated raids. Significant numbers of businesses participated.

It is also worth noting that the US government is assisting the National Police to establish a Cyber Crime Unit under the directorate in charge of economic and related crimes.

tHAilAndWorking with the government, BSA launched a national software IP awareness campaign in April with a direct-mail campaign reaching 30,000 businesses nationwide. Four SAM seminars were held in different cities between May and June, attracting more than 1,500 participants.

In September, the Royal Thai Police, in association with BSA, announced a crackdown campaign giving businesses 30 days to legalize their software before the commencement of nationwide raids.

BSA engaged with the Department of Intellectual Property on proposed copyright amendments and a study it commissioned on the nexus between IP and competition laws.

12 2008 BSA yeAr in review

EUROPE, MIDDLE EAST, AND AFRICA Safe and legal SoftwareEducation Efforts Continue On Risks Of Unlicensed Software

Educating businesses on the risks they face through the use of unlicensed software continued to be a key focus in Europe, the Middle East, and Africa (EMEA). With more than 6,400 articles recorded, BSA increased its media exposure from the prior year, with 74 percent of articles appearing in “premium” or “tier-1” media. The proportion of coverage related to BSA enforcement actions stands at 32 percent, up 4 percent from 2007. The increase in coverage is due to issuing annual and six-month “wrap-up” releases, as well as releases on individual actions. “The Fifth Annual BSA-IDC Global Software Piracy Study” and the Global IT Competitiveness Study by the Economist Intelligence Unit (EUI) were also keys to generating high coverage levels across EMEA.Beyond media coverage, BSA develops and implements marketing

campaigns aimed at encouraging compliance with software licenses. For example, the new ”Three Monkeys” campaign is currently being employed in markets as diverse as the Czech Republic, South Africa, Sweden, and Turkey. The flexibility of the creative concept has meant that each country is able to tweak the message to suit its own particular needs.

The BSA also has created two guides — the Risk Management Guide and the Font Guide — which have been widely distributed to help companies concerned with software compliance issues.

BSA has worked hard to gain greater support from local and national governments. In addition to BSA’s ongoing collaboration with the tax authorities in Greece and Hungary, the Ministry of Industry in Spain, and the Guardia di Finanza (GdF) in Italy, BSA has successfully engaged with governments in the Czech Republic, Poland, Sweden, and United Kingdom.

enforcementLead-Generation Activities Expanded

Lead-generation activities expanded across EMEA in 2008. Overall, BSA received thousands of leads across EMEA in 2008. The importance of lead generation cannot be understated. BSA needs the help of others in order to protect the safety and security of the digital world.

Within EMEA, BSA continues to focus efforts on the key markets of Belgium, France, Germany, Italy, the Netherlands, Spain, and the United Kingdom.

PolicyBSA Engages In Copyright, Telecom Debates

eUrOPeAn UniOn (eU)The EU’s Telecommunications Framework Review involved several proposals related to intellectual property rights (IPR) protection, security, and privacy. BSA

concentrated its advocacy on security and privacy issues and also led the way in opposing technology mandates in connection with content filtering. In November, the EU Telecom Council adopted proposals to modify the EU Directives comprising the Framework, including several amendments to the e-privacy directive that are largely consistent with BSA objectives. Following the success of the first European Security Awareness Day in Brussels in 2007, BSA hosted a second European Security Awareness Day attended by more than 220 participants, exceeding expectations. Regarding the European Interoperability Framework (EIF), a revised draft of EIF Version 2.0 was presented in the summer that recommended procurement

preferences for narrowly defined open standards. BSA expressed concerns in the media, provided input to the public consultations, and was heavily involved in the preparations for the White Paper on ICT standardization policy announced for February 2009. In November, BSA also hosted a roundtable on the EIF revision and enlisted the participation of key directorates-general, including DG Competition and DG Trade.

frAnceIn France, BSA assessed and responded to various drafts of a French law that aims to implement the November 2007 “Elysée arrangement” among members of the content industry, Internet service providers (ISPs) and French authorities. Commonly referred to as the “Olivennes” or “HADOPI” law,

the legislation focuses on the role of a High Authority in monitoring online copyright infringements and proposes to modify various existing laws, including the Intellectual Property Code. Separately, BSA’s challenge to an existing French law that forces the interoperability of technological protection measures and the disclosure of source code has made progress in the European Commission.

Piracy Snapshot: eMeA regiOnAl PirAcY rAte (2007): 44%

lOweSt: lUxeMBOUrg, 21%

HigHeSt: ArMeniA, 93%

MOSt iMPrOved: rUSSiA, dOwn 14 POintS Since 2003 tO 73%

www.bsa.org/globalstudy

2008 BSA yeAr in review 13

the “three Monkeys” anti-piracy

campaign is being employed in markets

asdiverseastheCzechRepublic,

South Africa, Sweden, and turkey.

14 2008 BSA yeAr in review

POlAndTo raise awareness of corporate end-user piracy, Robert Holleyman and senior BSA staff visited Poland in June for a series of meetings with Polish officials, member representatives, third-party influencers, US government officials, and media. BSA also cosponsored and participated in the Know Right conference in Krakow in September. This event, organized by the EU Commission and the Austrian Computer Society, offered BSA members an opportunity to interact with Polish and EU officials in discussions of patent reform, IP protection, and the European Interoperability Framework. BSA’s funding and active participation were welcomed by the organizers and participants, in particular by the EU directorate responsible for IP, which had been concerned about the potential influence of anti-IPR activists at the conference.Although the Polish Copyright Act contains important enforcement provisions and is expected to be amended further in 2009 to include new protections (including DRM-related measures), the level of piracy in Poland remains relatively high at 57 percent. To help address the undue length of time it takes to prosecute copyright cases, BSA has been involved in a joint initiative with the Ministry of Justice addressing the methodology of criminal proceedings in intellectual property crimes.

rUSSiABSA’s enforcement program in Russia had another strong year. BSA made several lobbying efforts in 2008 to amend Russian criminal law to include liability for legal entities, bring Russia more in line with its trading partners, and enable law enforcement agencies to bring criminal charges against entities involved in piracy and counterfeiting. These efforts have been complemented by ad hoc outreach and collaboration with Russian law enforcement officials and attempts to encourage prosecutors to pursue criminal actions.

A significant highlight was a series of regional law enforcement and training seminars for judges and prosecutors, coordinated by BSA in cooperation with Russian authorities. Government officials from the US and EU also participated.

The first EU-funded judges seminar took place in October in Moscow and attracted more than 120 judges from various Russian provinces; 15 representatives of the Ministry of Culture; the General Prosecutor’s office and Investigational Committees of the Ministry of Interior and Prosecution; representatives of BSA member companies and BSA; and leaders of NP PPP (a Russian software group).

Top & Emerging Markets: EMEA StrOng legAl PerfOrMAnce And PUBlic OUtreAcH in keY nAtiOnS

2008 BSA yeAr in review 15

A second judges training, supported by the EU Technical Assistance and Information Exchange (TAIEx) program, took place in December in Moscow. In addition, and at the request of the Ministry of Interior, TAIEx funded and BSA helped organize another training session for prosecutors and investigators, this one focused on copyright and investigation procedures. More than 150 prosecutors and investigators from various regions of Russia attended. After the seminars, the Ministry of Interior sent two official letters to the EU Ambassador in Russia expressing thanks and asking that this collaboration be continued in 2009.

In addition, BSA sponsored a number of dinners and smaller BSA-only seminars with Russian officials, member companies, and foreign government representatives. For example, BSA participated in the US Embassy’s Roundtable on IPR and Software Protection and is hopeful the success of the training seminars will encourage the EU and US governments to consider supporting further events in Russia, as well as in key markets such as Turkey and Ukraine.

tUrkeYThe BSA program in Turkey contained a combination of government outreach, education, and risk awareness elements. In spring 2008 BSA supported the Turkish Ministry of Culture in a nationwide education program. In this initiative, BSA supported the ministry in the production of a one-hour documentary on the impact of piracy on Turkish society. This project was jointly conducted with other rights holder associations and the film was distributed to universities and schools throughout Turkey. In addition, BSA continued its successful “Men in Black” campaign. Between January and June 2008, more than 2,700 Turkish businesses were visited by BSA teams and educated on the risks of illegal software and provided with materials to promote the implementation of software management practices. In October, BSA conducted a risk awareness campaign in the greater area of Istanbul. This campaign was supported by the magistrate of the city of Istanbul who provided BSA with free advertisement space on official public LCD displays. BSA Turkey operated with a dedicated telesales and call center operation throughout 2008, which assisted callers in answering their licensing questions.

In June, LOGO, Turkey’s leading local software vendor, became a member of BSA. The official announcement at a press conference in June 2008 received high awareness by the media.

“ The BSA is unique in Russia

and is the best example of

cooperation with Russian

law enforcement and

the government.”— MINISTRY OF THE INTERIOR OFFICIAL

16 2008 BSA yeAr in review

Safe and legal SoftwareBSA Creates, Sustains Lead Generation In Latin America

BSA’s Latin America Compliance Marketing activities have been structured around five key strategic pillars: announcing BSA initiatives, leveraging enforcement actions, strengthening media relations, organizing educational initiatives, and increasing influencer relations. Marketing activities in Latin America’s top and emerging markets — Brazil and Mexico — focus on building social awareness for the overall value of intellectual property (IP) by leveraging piracy-related studies on a local level and implementing strategic public awareness initiatives.

BSA improved the effectiveness of its enforcement communications by intensifying media outreach, and publicizing cease and desist (C&D) campaigns. Media coverage

in the top and emerging markets of Mexico and Brazil was 44 percent of the press coverage in the region.

Meanwhile, BSA launched new lead-generation efforts. The first-ever regional lead-generation Web sites, www.bastadepirateria.com in Spanish and www.bastadepirataria.com in Portuguese, were launched in the spring and will be incorporated into all Latin American materials, as well as promoted through online marketing. Lead generation is important because BSA needs the help of citizens around the globe in protecting the safety and security of the digital world.

BSA launched an educational Web site, www.piensaantesdecopiar.com in Spanish, and www.penseantesdecopiar.com in Portuguese, to introduce students to the concepts of copyright and intellectual property, and to help them understand why the use of unlicensed products is unfair and illegal.

Educators and the press have warmly received this initiative and found it helpful in educating young people on the importance of respecting IP.

In addition to the educational Web site for students, BSA continued its Digital Animation Contest, a grassroots initiative designed to teach students the importance of IP protection. In 2008, this contest was held in Mexico, Colombia, and Peru and was successful in driving media coverage and engaging contestants and government sponsors. The contest has been endorsed and sponsored by third-party organizations including the Instituto Mexicano de la Propiedad Industrial (IMPI); the Ministry of the Economy of Mexico; the Direccion Nacional de Derecho de Autor (DNDA) in Colombia; and the Instituto Nacional de Defensa de la Competencia y la Propiedad Intelectual (Indecopi) in Peru.

LATIN AMERICA

enforcementTo combat software piracy and promote the protection of intellectual property rights throughout Latin America, BSA had active enforcement programs in 15 countries: Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Mexico, Panama, Paraguay, Peru, and Uruguay.

Brazil, Mexico, Argentina, Chile, and Peru were the most successful enforcement programs in Latin America in 2008.

Piracy Snapshot: lAtin AMericA regiOnAl PirAcY rAte (2007): 65%

lOweSt: cOlOMBiA, 58%

HigHeSt: venezUelA, 87%

MOSt iMPrOved: cOStA ricA, dOwn 7 POintS Since 2003 tO 61%

www.bsa.org/globalstudy

2008 BSA yeAr in review 17

BSA launched educational Web sites in

Spanish and Portuguese to introduce

students to the concepts of copyright

and intellectual property.

winners of BSA’s digital Animation

ContestinMexicoshowtheir

pride.Thiscontest,heldinMexico,

colombia, and Peru is a grassroots

initiative designed to teach students

the importance of iP protection.

18 2008 BSA yeAr in review

The majority of BSA’s enforcement and policy advocacy efforts in Latin America are focused in the top and emerging markets of Brazil and Mexico.

BrAzilIn 2008, BSA began active discussions with the Brazilian Association of Software Companies (ABES) regarding establishing a joint BSA-ABES Policy Task Force.

In June, BSA participated in a forum sponsored by the Forum Nacional de Combate à Pirataria to discuss legislative issues. BSA also met with leaders of Brazil’s National Council Against Piracy and Intellectual Property Crimes (CNCP) and continued to build its presence in this key forum. In August, BSA participated in the Ministry of Justice’s launch of the “Icatu” study on perceptions of piracy by the Brazilian population. The study is being conducted with support from Microsoft. In October, BSA sponsored and took part in a panel at the School of Magistrates of the State of Rio de Janeiro, which also included leaders of the Brazilian Association of Intellectual Property (ABPI) and the International Anti-Counterfeiting Coalition (IACC). Participants discussed the possibility of IP training for judges in collaboration with the School of Magistrates.

BSA’s country manager was featured as a panelist at the International Conference on Anti-Piracy and IP Protection in Rio de Janeiro from October 1 to October 3. The event was coordinated by the Brazilian Institute of Law and Criminology (IBDC), the ABPI, and the Rio de Janeiro State School for Magistrates (EMERJ), with the support of the US Consulate General in Rio, Globo television, Mural Newspaper, the CNCP, and the Government of the State of Rio de Janeiro. BSA also participated in a panel on “Software and Internet: Protection, Legislation, Technological Development and

Anti-Piracy” along with Nils Montan and Karine Moreno-Taxman, an assistant US Attorney (federal prosecutor).

BSA also took part in an American Chamber of Commerce project called “Projeto Escola Legal,” which aims to raise awareness of copyright and piracy in schools.

In November, Robert Holleyman and other BSA senior executives visited Brasília and São Paulo to announce plans for BSA’s 2009 Technology and Innovation Forum and Distinguished Innovators Awards; and to emphasize BSA’s anti-piracy priorities in the region. Meetings were held with Congressman Julio Semeghini; officials in the Ministries of Justice, Foreign Affairs, Culture, Development, Industry and Foreign Trade, and Science and Technology; the US Consul General in São Paulo; and the head of the Brazilian Patent Office.

In December, BSA participated in the National Day of Combating Piracy ceremony at the Ministry of Justice in Brasília.

MexicO BSA Mexico had a great year, with highlights including a new partnership with IMPI, the Mexican agency responsible for IP enforcement; efforts to amend the law to boost IP enforcement actions; and an in-house cease and desist (C&D) letter campaign with strong results. BSA also has expanded the use of government-sponsored mediations through INDAUTOR, the Mexican copyright office.

In February, BSA executives met with Senator Eloy Cantú Segovia to analyze possible avenues for amending the Law of Industrial Property. BSA is looking to have this law

Top & Emerging Markets: Latin AmericaBSA exPAndS ActivitieS On SeverAl frOntS

2008 BSA yeAr in review 19

amended as it would offer more effective enforcement through increased penalties and enhanced legal powers.

In March, BSA cosponsored and co-chaired the First Global Summit on IP and the Judiciary in Cancún, drawing the participation of 10 delegations of judges and executive branch representatives from around the world. Approximately 250 Mexican judges and magistrates attended, including the Chief Justice of the Supreme Court and two other Supreme Court justices. The event was an unprecedented effort to improve IP enforcement by bringing together judges from all over the world to discuss best practices. BSA has already seen an improvement in the legal quality of court decisions as a result of this summit.

BSA also continued working with the Ministry of the Economy through the Mexican Software Consortium.

BSA, together with the American Chamber of Commerce and the Writers’ Association (CEMPRO) launched the “Escuela Legal” campaign to recognize universities that use legal software and regulate the photocopying of books.

On April 26, BSA Mexico celebrated the World IP Day together with IMPI, INDAUTOR, and the Ministry of the Economy by co-hosting an event with children and young Mexicans to award the winners of the Digital Animation Contest. BSA was the only industry association to be part of the official national celebration of World IP Day.

In April, BSA, the Ministry of Economy, and INDAUTOR launched the third annual Digital Animation Contest. For the first time, the main actors of the IP policy and enforcement arena came together to launch an initiative regarding IP policy and enforcement, including representatives of IMPI, INDAUTOR, the Attorney General’s Office, the Federal Judiciary, the Mexican National Autonomous University (UNAM), the Ministry of the Economy, and another 20 sponsors from the public and private sectors.

Meanwhile, BSA began negotiations toward a collaboration agreement with the Mexican National Autonomous University (UNAM). The UNAM academic community in the Mexico City region has more than 300,000 members, and UNAM is an important political entity in its own right. The university has proposed collaborating with BSA on policy for academia regarding ICT, software, and piracy matters.

The First Global Summit on IP and the Judiciary in Cancun

brought together senior judges and officials from Mexico and

other nations to discuss best practices in IP law.

20 2008 BSA yeAr in review

Safe and legal SoftwareBSA Partners With US Small Business Administration

In 2008, BSA continued its partnership with the US Small Business Administration (SBA) to educate more than 100,000 small businesses on the risks of software piracy. BSA and SBA cosponsored an online Webinar on how to manage software licenses as part of a comprehensive business plan. The Webinar was publicized extensively through the media and direct e-mail outreach, and it was recorded and posted on the Web sites of BSA, SBA, SBA resource partners across the country, and an SBA-BSA cosponsored Web site (www.smartaboutsoftware.org). BSA also developed a DVD of the Webinar along with tools for users to implement SAM. The DVD was distributed at SBA’s National Minority Enterprise Development Week conference in Washington, DC; at the annual conference of

SCORE Counselors to America’s Small Business; and via SBA’s various affiliates and resource partners.

In an effort to highlight the negative impacts of piracy in local communities, BSA released a study in July on the

effects of piracy losses in eight key states: Arizona, California, Florida, Illinois, Nevada, New York, Ohio, and Texas. For example, the study noted that piracy in these eight states cost software vendors an estimated $4.2 billion, but it also cost software

NORTH AMERICAA BSA state piracy study found that

piracy in eight key states cost software

vendors an estimated $4.2 billion, but

it also cost software distributors and

service providers an additional $11.4

billion, which would have been enough to

hire 54,000 high-tech industry workers.

distributors and service providers an additional $11.4 billion, which would have been enough to hire 54,000 high-tech industry workers. The lost state and local tax revenues ($1.7 billion) would have been enough to build 100 middle schools or hire nearly 25,000 experienced police officers.

BSA’s Holiday Survey, released in mid-November, focused on the piracy implications of technology gifts and purchases by college students. Nearly three-quarters of the 400 college students surveyed said they expected to purchase or receive computer hardware or software over the next year or to be involved in such a purchase during the holidays. Sixty percent of the students told pollsters they “know where to go on the Internet to download software for free

or at a discount.” However, when the students were exposed to the list of potential risks from using unauthorized software, 43 percent said they would be more cautious and 31 percent said they would “never” again obtain software from an unauthorized source.

enforcementBSA Brings Software Pirates To Justice

In 2008, BSA expanded its end-user anti-piracy program in North America. The majority of cases are handled through a high-volume self-audit program, augmented by civil litigation as circumstances warrant.

In 2008, BSA received several thousand leads as a result of reports to BSA’s online reporting form,

calls to the BSA toll-free piracy hotline, and member company referrals. Leads from around the world help BSA protect the safety and security of the digital world.

PolicyProgress Made On Patent Reform, Cyber Crime, ‘Solutions’ Campaign

In September, President Bush signed into law the Identity Theft Enforcement and Restitution Act of 2008, one of BSA’s signature priorities. The act includes a number of provisions sought by BSA, making it easier for law enforcement to fight cyber crime by closing legal loopholes and strengthening criminal penalties. This achievement came about after BSA staff at all levels worked for several years with the relevant players in Congress as well as the US Department of Justice. Several BSA members contributed greatly through their own direct outreach.

Piracy Snapshot: nOrtH AMericA regiOnAl PirAcY rAte (2007): 21%

lOweSt: United StAteS, 20%

MOSt iMPrOved: n.A.

www.bsa.org/globalstudy

2008 BSA yeAr in review 21

In 2008, BSA continued its partnership with the US Small

Business Administration (SBA) to educate more than 100,000

small businesses on the risks of software piracy.

Effective and comprehensive reform of the US patent system has been a BSA priority for several years. In 2007, the House of Representatives passed HR 1908, a balanced package that addressed all major substantive issues identified by BSA members. However, the effort hit a major roadblock in the Senate in 2008.

Despite this setback, BSA has advanced the policy dialogue on patent reform. Our principal concerns have been with jurisprudence, not the letter of the law. In recent years, the courts have corrected several of the key problems: injunctions are no longer automatic (eBay v. MercExchange); the law’s obviousness standard has been adjusted to improve quality (KSR v. Teleflex); the standard for triple punitive damages has been adjusted (Convolve v. Seagate); and counting copies of software made abroad for US damages has been eliminated (Microsoft v. AT&T). Each of these decisions cured a major problem, and BSA’s amicus arguments filed in each case were central to the reasoning adopted by the Supreme Court.

In March, BSA continued its Executive Forum series with the fourth annual Chief Technology Officer (CTO) Forum in Washington, DC, where member company CTOs met with

officials from the White House Office of Management and Budget, Department of Homeland Security, Office of the Director of National Intelligence, Air Force Cyber Command, and National Security Agency. Key policymakers had the opportunity to hear from the chief innovators of some of the nation’s leading tech companies on issues including cyber security, technology neutrality, patent reform, tax policy, and modernizing the immigration process for high-tech workers. In February, the International Intellectual Property Alliance (IIPA) filed its Special 301 report and recommendations with the US Trade Representative (USTR) on behalf of BSA and other member associations. The purpose of the report is to identify countries that are lagging in their obligations to provide effective intellectual property protection for creative works, including software. The 2008 submission covered 43

countries. The USTR released the results of its 2007 Special 301 review in April, and in most of BSA’s top and emerging markets, the USTR’s rankings conformed to BSA’s recommendations.

During the year, BSA also began the development of a new framework for its policy advocacy efforts called the Solutions campaign. The objective is to communicate BSA’s policy agenda in a fresh way that resonates well with non-experts and new political allies beyond the “usual suspects.” New messaging is being developed that highlights the many ways that software and innovation are crucial to the economy and society, such as in health care, energy efficiency, the food supply, and education. Campaign elements will include a series of highly visual, magazine-style publications; educational events in Washington and key markets around the country; earned media coverage; outreach to new allies in industries that rely heavily

22 2008 BSA yeAr in review

In September, Congress enacted and

President Bush signed the Identity Theft

Enforcement and Restitution Act, one of

BSA’s signature priorities.

on IT; and the annual BSA Executive Forum events. In an early test of the new approach, BSA convened a roundtable of local experts on health IT during the BSA Policy Council retreat in Miami in November. BSA is also developing ways to apply the Solutions approach in key markets outside the United States.2008 also was a year of laying the groundwork for influence in the new presidential administration and new Congress that took office in January 2009. In July, BSA developed a high-level statement of “Principles of Economic Leadership” and used the principles as the basis for meetings with key advisers to the leading presidential candidates. Some of BSA’s messaging was subsequently echoed in tech policy statements by candidates John McCain and Barack Obama, and in media coverage of the tech policy issues at stake in Campaign ‘08. In December, BSA fleshed out the principles by releasing a number of specific policy proposals in BSA’s 2009 Technology Policy Agenda.

2008 BSA yeAr in review 23

the Solutions campaign aims to communicates BSA’s policy agenda in a fresh way

that highlights how software and innovation are crucial to the economy and society.

BSA PrinciPleS Of ecOnOMic leAderSHiP

Far-sighted public policies are critical to the success of today’s knowledge-based economy. In 2008, BSA put forward a series of Principles for Economic Leadership, calling on policymakers to:

• Inspire creativity and innovation through comprehensive and enforceable intellectual property policies, including copyright, patent and trademark laws.

• Foster an online marketplace where citizens and businesses use information tools with confidence, by making certain that laws effectively prohibit and punish cyber crimes.

• Ensure that our nation produces and attracts the best and brightest workforce through forward-looking education and immigration policies.

• Improveexportopportunities for technology companies by eliminating trade barriers and discouraging the adoption of discriminatory public procurement practices.

• Promote research,developmentandinvestmentinnext-generationtechnologies to spur economic growth and innovation across the economy.

For further details, visit www.bsa.org/techpolicy.

24 2008 BSA yeAr in review

Safe and legal SoftwareBSA Releases ‘Online Software Scams’ Report

The core of Compliance Marketing efforts within the Internet Program has been educating consumers about the risks of software acquired from dubious sources such as auction sites, peer-to-peer (P2P) and BitTorrent networks, and other Web sites such as iOffer and craigslist.

In this regard, BSA issued a comprehensive report for the general public entitled “Online Software Scams: A Threat to Your Security,” describing the growing scope of the Internet piracy problem, the links to identity theft and other forms of cyber crime, and the steps that are needed to reduce Internet-based piracy.

enforcementBSA Utilizes In-House Tool For BitTorrent Notices

The focus of BSA’s global Internet enforcement program is identifying and taking down infringing copies of its members’ software, either for sale to Internet customers via online auctions and other Web sites, or for free through peer-to-peer (P2P) networks. During 2008, BSA sent more than 1.9 million takedown notices to Internet service providers targeting P2P software distribution, and shut down 39,146 auctions that were offering more than 216,000 member software products. BSA continues to monitor software auctions closely. Last year also marked the first full year of BSA’s in-house automated tool for BitTorrent notices. This tool permits BSA to strike further up the supply chain, rather than merely sending notices at the demand level. BSA began daily scans of the nine

most popular BitTorrent hosting sites worldwide, and as a result sent 122,251 takedown notices. These Torrent files were being used by more than 1.4 million people to download software worth more than $1 billion. The operators of the Torrent sites have been largely cooperative in removing files upon request.

Meanwhile, BSA’s Internet Enforcement program also continued to work with government agencies to bring software pirates to justice. In 2008, BSA referred new cases to the US Department of Justice (DOJ) and provided support in existing cases.A case referred to DOJ by BSA reached completion in 2008. Tommy Rushing was sentenced to three years in federal prison, three years of supervised release following jail time, and a $10,000 fine. Rushing’s 2006 Porsche Cayenne Turbo, a high definition TV, and computer equipment were also seized as part of the sentencing mandate. Prior to

INTERNET

his arrest, Rushing and his partners sold an estimated retail value of $2.5 million in illegal software. Other highlights included the case of the Robberson brothers, who were sentenced in March to a collective 66 months in federal prison for managing several for-profit Web sites and selling more than $6 million in pirated computer software. A civil judgment was entered against an Atlanta, Ga., woman, in the amount of $250,000 for the sale of unauthorized Corel software on eBay. And civil lawsuits were filed in the northern district of California and in the United Kingdom against nine individuals who were allegedly selling illegal software on iOffer.com.

Meanwhile, BSA’s continued support of Operation Copycat, a DOJ investigation targeting online “warez” groups, led to another conviction and sentencing this year. Three additional defendants were convicted this year and sentenced in December.

2008 BSA yeAr in review 25

this BSA report described the internet

piracy problem, the links to identity

theft and cyber crime, and the steps

needed to reduce it.

BSA shut down 39,146 auctions offering more than 216,000

member software products with a total suggested retail price

value of nearly $108 million.

04 2008 yeAr in review

WWW.BSA.ORG

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