Microsoft Loses Tens of Millions of Dollars Annually in Armenia

As a result of pirated software used by individual users and organizations, Microsoft loses tens of millions of dollars annually in Armenia, said Grigor Barseghyan, the country manager for Microsoft Armenia. 

As reported earlier today, Microsoft’s office in Georgia loses $150 million annually as a result of software piracy. According to a 2009 report by the Business Software Alliance, at 95%, it is the country with the highest rate of software piracy.  

According to Barseghyan, such a survey (regarding Microsoft’s exact losses) hasn’t been conducted in Armenia; however, the numbers are comparable to Georgia’s figures, if the population proportion is taken into consideration. 

Barseghyan noted that the RA government should look into the issue, since about 35% of profits from sales of software programs is paid as taxes to the state.

According to the Microsoft Armenia manager, they are cooperating with the Armenian government on the issue and some progress has been noted. Particularly, according to statistics by the Business Software Alliance, the piracy rate in Armenia was 96% in 2006, whereas the latest figure from 2009 show the rate, at 90%, has declined.

Barseghyan noted that their “fight” is based on working with users. According to him, they attempt to explain to users that using licensed software is actually more profitable than using pirated software. 

Without resolving copyright issues, said Barseghyan, we can’t think about the economy.

“If the country wants to have an economy based on innovation, without solving the problem of protecting copyright, that’s impossible,” he said.