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.