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Software piracy is measured in this study as the amount of business application software installed in 2001 without a license ( BSA

Global Software, 2001)

Since the study began in 1994, there had been steady decrease in the rate of software piracy. The 2001 piracy rate of 40 percent is a marked increase from 37 percent in 2000. both year were up from the low set in 1999 at 36 percent.

In 2001, the effects of aworldwide economic slowdown that hit technology spending particulary hard probably caused the increase in the piracy rate. The result of the study indicate that software piracy rose response to the pressure of the curtailed spending of the economic downturn.

Malaysia and India experienced rate increases of 70 percent for both countries in the above BSA Global Piracy Study for 2001.

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