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As video games become a bigger business around the world, topping cinema box office sales in the US, piracy has become an increasingly larger problem.
The Interactive Digital Software Association (IDSA), the trade association representing US computer and video game publishers, said that although entertainment software sales totaled USD6.35 billion last year, billions of dollars were lost to software piracy.
The organisation revealed that over USD1.9 billion was lost due to global software piracy with Korea and China accounting for more than half the total alone.
The group is due to report its findings to the US government on Friday and along with other associations that make up the International Intellectual Property Alliance (IIPA) is to recommend that the government single out more than 50 countries for their failure to stop unauthorised software piracy and protect intellectual property rights.
The IDSA will stress that total global losses for the entertainment software industry are significantly higher than USD1.9 billion, as the current study does not reflect losses incurred in the US, Canada and Western Europe, losses resulting from Internet downloads or losses in markets where there is not reliable data.
"There are at least 100 other countries around the globe where there is virtually no legitimate market for our products due to rampant piracy," said IDSA president Doug Lowenstein. "It is no exaggeration to say that the growth of the US video game business is limitless if we can reduce piracy in these untapped markets to incidental levels."
The IDSA's piracy loss estimates are included in the Special 301 report of the Washington-based International Intellectual Property Alliance (IIPA) to be filed with the United States Trade Representative on Friday morning. Under the Special 301 trade law, the US Trade Representative can impose trade sanctions following an investigation and consultation period.
The IIPA represents America's leading content associations on piracy issues worldwide, while the IDSA is dedicated to serving the business and public affairs needs of the companies publishing interactive games for video game consoles, handheld devices, personal computers and the Internet.
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