- Software piracy is big in China, Russia and India – and growing in Germany
- Many track telemetry but do nothing with it, reducing observability
- Clear functional pricing is the key to stamping out piracy
Despite increasingly stringent measures and the growing popularity of subscription-based packages, one-third (31%) of software makers now say piracy is a major source of revenue leakage.
New research from Revenera claims unlicensed usage is a major problem in China, Russia and India, with Germany rising from 11th to sixth place and appearing particularly fond of engineering simulation and CAD software.
Despite the challenges, many software companies lack sufficient visibility over their software usage – 30% collect telemetry but don’t analyze it, creating what Revenera says is a major blind spot.
Unlicensed software is still an issue globally
“Beyond compliance, usage insights can also help with product roadmap decisions and churn prevention, yet nearly one-third of companies admit to ignoring the usage data they collect – exposing a significant blind spot that can sabotage revenue growth,” SVP and GM Nicole Segerer explained.
Although only 31% see piracy as a major issue and 25% see license misuse as a major issue, 43% and 41% respectively see it as a moderate issue, highlighting the broad extent of improperly licensed software.
Revenera says software makers should use AI to improve reporting, having already established that around one-third let telemetry data go to waste. The need is clear, with 8% not even sure how they’re losing revenue to unlicensed software (up from 5% last year).
The report also revealed that converting unlicensed users into paying customers is “highly achievable” in markets with strong IP laws – with the right tools and data.
“The most successful companies integrate compliance into Sales teams, treating infringement data as a pipeline of qualified leads to target,” Segerer added.
Looking ahead, Revenera says predictability is crucial for reducing unlicensed use, noting that many companies plan significant changes to their usage-based pricing by 2027. Around two-fifths each plan to adopt prepaid models (38%) and post-paid models (43%).
“Companies that approach compliance as a sales function rather than legal enforcement channel see the greatest success,” the report concludes.
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