Piracy is costing the UK business software industry nearly £1bn ($1.8bn) a year, according to research released today.

Some 27 per cent of all business IT software used in the UK is illegal, making British firm's the fifth worst offenders in the world, says the 2005 Global Piracy Study, commissioned by the Business Software Alliance (BSA).

Software piracy levels also increased globally costing computer firms $34bn last year, according the research conducted by analyst firm IDC.

The BSA says software theft and piracy is being fuelled by the growth of broadband, allowing firms and employees to download illegal business applications, IT security packages and operating systems faster.

'There are some businesses that think it is OK to copy software and believe they won't get caught. But there are consequences and stiff penalties if they do,' said Siobhan Carroll, Northern Europe regional manager at BSA.

The IDC report showed that software piracy was most rife in Asia and Africa, with Vietnam (90 per cent of all software), Zimbabwe (90 per cent) and Indonesia (87 per cent) the worst offenders. But financially the United States, China, France, Germany and UK cost the software industry the most money in terms of theft.

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