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While the piracy rate has dropped in sixty-two countries, out of the 102 studied, it increased in thirteen countries. However, it was in these countries that the personal computer market grew fastest.

As a result of worldwide market growth the overall cost of piracy also rose. It increased by $5 billion, a 15 per cent increase over the previous year.

When it comes to countries with the highest rates of piracy, Armenia leads the way, with rates measured at 95 per cent, followed by Moldova (94 per cent), Azerbaijan (94 per cent), Zimbabwe (91 per cent) and

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Vietnam (88 per cent).

The countries with the lowest piracy rates were the United States (21 per cent), New Zealand (22 per cent), Japan (25 per cent), Denmark and Austria (26 per cent). The UK recorded a rate of 27 per cent, according to the study.

China, at least, is making progress. Its piracy rate dropped four percentage points, representing a ten per cent drop in the last three years, to a rate of 82 per cent. This is significant, as the IDC ranks China second only to the US for PC shipments.

According to the study, the net worth of the legitimate software market in China grew to almost $1.2 billion in 2006, an increase of 88 per cent from 2005. Worldwide, the total value of software installed on computers worldwide is $100 billion, with only $65 billion paid for.

Note that the study specifically covers PC software - operating systems, systems software, and business and consumer apps - and excludes software that runs on servers is sold as a service.

You can find a PDF of the key findings here.