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Piracy dents taxman’s demand on Microsoft

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New Delhi, May 19 Microsoft enjoys a dominant position in the computer software market in India, with its operating system accounting for over 95 per cent share of India’s desktop market in 2006-07.

This included Windows XP Pro, Windows 2000, Windows ’95/98, Windows XP Home, Windows Vista and Windows NT, amongst others, according to a MAIT-IMRB survey which tracked operating systems on desktops across top 22 cities.

The Redmond, Washington-based software giant sold close to two million licences of the Vista version of Windows in India since 2007 when it announced the launch of the product.

However, software piracy remains a major problem for Microsoft in most emerging markets including India. Witness that India’s desktop PC sales are estimated at 5.75 million units in 2007-08 against 5.5 million units in the previous year; 4.61 million units in 2005-06; and 3.63 million units in 2004-05. The overall installed base of Personal Computer (PCs) in India is close to 25 million units today.

According to the latest PC software piracy study released by Business Software Alliance last week, the overall piracy of software in India dropped to 69 per cent in 2007 from 71 per cent in 2006.

Painful as the phenomenon of piracy is to Microsoft, they can take some comfort from the fact that they would have been slapped with a far larger tax claim but for that.

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