By McCall H.C.R. No. 124 77R5975 ELG-D HOUSE CONCURRENT RESOLUTION 1-1 WHEREAS, In recent years the high technology industry has 1-2 helped redefine the Texas economy and has become a powerful engine 1-3 for economic stability and growth, with more than 16,000 software 1-4 companies employing approximately 169,000 Texans and generating $27 1-5 billion in annual wages; overall, high technology service and 1-6 manufacturing businesses employ more than a half-million Texans; 1-7 and 1-8 WHEREAS, The positive impact of the high technology industry 1-9 in Texas extends beyond the salaries of highly skilled workers, 1-10 affecting businesses that provide goods and services to these 1-11 companies as well as the construction and real estate industries; 1-12 in 1997 this ripple effect generated 621,000 Texas jobs, wages 1-13 totaling more than $20 billion, and $3.6 billion in combined tax 1-14 revenues; and 1-15 WHEREAS, Software piracy and theft represent a significant 1-16 drain on Texas' high technology industry and the state economy as a 1-17 whole; approximately 25.7 percent of the computer software used in 1-18 Texas--more than one out of every four copies--is illegal, and, 1-19 according to recent data, software piracy costs Texas an estimated 1-20 7,000 jobs, $329 million in wages, $570 million in retail sales, 1-21 and $105 million in state tax revenue every year; and 1-22 WHEREAS, In addition to its economic costs, software piracy 1-23 exposes consumers to the threat of fraud, a threat that has 1-24 increased with the distribution of thousands of copies of 2-1 counterfeit software through Internet auction sites and software 2-2 websites; as the technology used by software pirates advances, even 2-3 sophisticated consumers are unable to distinguish between 2-4 legitimate and counterfeit software; and 2-5 WHEREAS, Software piracy also exposes consumers to the risk 2-6 of computer viruses, reduces or eliminates their access to vital 2-7 technical support, and can prevent the efficient operation of 2-8 information resources in both the private and public sectors; and 2-9 WHEREAS, Government agencies have been among the most 2-10 susceptible to this growing trend, as they are frequently required 2-11 to follow guidelines requiring that they purchase software from the 2-12 lowest bidder; Microsoft recently identified more than 40 federal, 2-13 state, and local government agencies that have inadvertently 2-14 purchased counterfeit software licenses; now, therefore, be it 2-15 RESOLVED, That the 77th Legislature of the State of Texas 2-16 hereby condemn the practice of software piracy in all its forms, 2-17 including the unauthorized acquisition, reproduction, distribution, 2-18 transmission, and use of computer software by Texas state agencies 2-19 and recipients of state financial assistance, and further express 2-20 its support for public and private efforts to eradicate software 2-21 piracy in all its forms.