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The Jerusalem Post, Internet Business Article, May 26th, 2000:

Software-piracy rate drops

By Buzzy Gordon

- The Business Software Alliance (BSA), a US-based watchdog organization, issued its 1999 Global Software Piracy Report this month, analyzing practices of computer-software copyright infringement worldwide.

Israel succeeded in lowering the rate of piracy from 48 percent in 1998 to 44% last year, the fifth consecutive year that such a decline has been registered - and down significantly from 78% back in 1994.

Moreover, Israel has the lowest piracy rate in the Middle East and North Africa, including the vastly wealthy oil-rich Arab nations of Saudi Arabia, Qatar, Bahrain, and all the Gulf States. Oman, for example, has double the the piracy rate of Israel, reaching 88%, the same as Lebanon.

This progress notwithstanding, earlier this month the United States reiterated in its US Trade Representative (USTR) Special 301 Decision that Israel would remain on the US government's priority watch list targeting privacy offenders.

"Israel [is] among the countries that have very serious intellectual property problems... requiring the focus of increased bilateral attention," said USTR Charlene Barshevsky in an official statement.

Barshevsky noted that Israel had indeed passed tougher legislation against piracy and beefed-up enforcement, but insisted that "Israel remains a key distribution hub in a multi-country network (including Western Europe and Russia) for pirated optical media product, much of which is still manufactured in Israel."

Attorney Ami Fleisher, the BSA representative in Israel, said that Israel should not be compared to other countries in the Middle East, but to other westernized and computer-oriented countries like Germany, the UK, and the US, whose piracy rates are in the 25% to 27% range. And Attorney Eran Soroker, whose law firm of Soroker Agmon pursues violators of software copyrights, stressed that the dollar losses caused by piracy in Israel have been on the increase year after year, accounting for a record $72.5 million in losses to software developers in 1999.

However, Western European nations like the Netherlands and Italy have similar or worse piracy rates than Israel, and accounted last year for dollar losses to intellectual property owners of $264m. and $421m. respectively.

Even the vaunted examples of Germany and the UK cost the software industry $680m. and $652m. respectively, while losses from this type of theft in the US amounted to a whopping $3 billion, the worst single-country offender on the BSA list. Israel did not come close to making the top 25 list of offenders.

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