1-1     By:  McCall (Senate Sponsor - Nelson)                H.C.R. No. 174
 1-2           (In the Senate - Received from the House April 30, 2001;
 1-3     April 30, 2001, read first time and referred to Committee on
 1-4     Business and Commerce; May 10, 2001, reported favorably by the
 1-5     following vote:  Yeas 6, Nays 0; May 10, 2001, sent to printer.)
 1-6                         HOUSE CONCURRENT RESOLUTION
 1-7           WHEREAS, In recent years the high technology industry has
 1-8     helped redefine the Texas economy and has become a powerful engine
 1-9     for economic stability and growth, with more than 16,000 software
1-10     companies employing approximately 169,000 Texans and generating $27
1-11     billion in annual wages; overall, high technology service and
1-12     manufacturing businesses employ more than a half-million Texans;
1-13     and
1-14           WHEREAS, The positive impact of the high technology industry
1-15     in Texas extends beyond the salaries of highly skilled workers,
1-16     affecting businesses that provide goods and services to these
1-17     companies as well as the construction and real estate industries;
1-18     in 1997 this ripple effect generated 621,000 Texas jobs, wages
1-19     totaling more than $20 billion, and $3.6 billion in combined tax
1-20     revenues; and
1-21           WHEREAS, Software piracy and theft represent a significant
1-22     drain on Texas' high technology industry and the state economy as a
1-23     whole; approximately 25.7 percent of the computer software used in
1-24     Texas--more than one out of every four copies--is illegal, and,
1-25     according to recent data, software piracy costs Texas an estimated
1-26     7,000 jobs, $329 million in wages, $570 million in retail sales,
1-27     and $105 million in state tax revenue every year; and
1-28           WHEREAS, In addition to its economic costs, software piracy
1-29     exposes consumers to the threat of fraud, a threat that has
1-30     increased with the distribution of thousands of copies of
1-31     counterfeit software through Internet auction sites and software
1-32     websites; as the technology used by software pirates advances, even
1-33     sophisticated consumers are unable to distinguish between
1-34     legitimate and counterfeit software; and
1-35           WHEREAS, Software piracy also exposes consumers to the risk
1-36     of computer viruses, reduces or eliminates their access to vital
1-37     technical support, and can prevent the efficient operation of
1-38     information resources in both the private and public sectors; and
1-39           WHEREAS, Government agencies have been among the most
1-40     susceptible to this growing trend, as they are frequently required
1-41     to follow guidelines requiring that they purchase software from the
1-42     lowest bidder; the software industry recently identified more than
1-43     40 federal, state, and local government agencies that have
1-44     inadvertently purchased counterfeit software licenses; now,
1-45     therefore, be it
1-46           RESOLVED, That the 77th Legislature of the State of Texas
1-47     hereby condemn the practice of software piracy in all its forms,
1-48     including the unauthorized acquisition, reproduction, distribution,
1-49     transmission, and use of computer software by Texas state agencies
1-50     and recipients of state financial assistance, and further express
1-51     its support for public and private efforts to eradicate software
1-52     piracy in all its forms.
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