New Zealand has the fourth lowest rate of software piracy in the world after the United States, Japan and Luxembourg, according to the Business Software Alliance (BSA), but is not being rewarded with correspondingly lower prices for popular software.

The BSA is an anti-piracy group funded by Microsoft and other large software makers.

The study, by research firm IDC, estimated that 43 per cent of software used on the world's personal computers last year was pirated, up from 41 per cent in 2008, costing the global software industry US$51.4 billion (NZ$65.1b).

Thirty-five per cent to 45 per cent was "legitimately paid for" and the rest was free or open source.

IDC estimated that in New Zealand 22 per cent of software was pirated, unchanged over each of the previous three years.

Despite the low piracy rate, customers are being charged 40 per cent more for some popular Microsoft software. Office productivity suite mainstay Microsoft Office Professional 2007 was selling for $1149 at Noel Leeming and Bond and Bond last week.

The same software was on sale at Amazon.com for US$406 (NZ$568) and at British electronic goods chain Dixons for 321 (NZ$669).

Office 2007 Home and Student edition was last week priced at $249 by Noel Leeming, US$99 (NZ$139) at Amazon and 69.99 (NZ$146) at Dixons.

Microsoft spokeswoman Lucy Powell denied it was overcharging. "You will probably find throughout the year there are deals available. We have to look at everything, like market conditions, freighting, GST and margins for the retailer."

Prices for many items, not just software, are higher because of New Zealand's geographical remoteness and small population, she says. "There are many forces at play."

Microsoft meanwhile said it had successfully sued a person who had been selling counterfeit Microsoft Office 2007 software on Trade Me.

Trade Me welcomed the outcome of the case at Manukau District Court.

Given the global recession and that more than half of new PCs were sold to consumers rather than businesses, 2009 was a surprisingly good year in the fight against software piracy, IDC said.

It said it was possible the rate of piracy had peaked.

The BSA said piracy could have taken a "dramatic turn for the worse" because of the downturn.

2009 Piracy Rates

China 79pc

Brazil 56pc

Italy 49pc

Spain 42pc

South Africa 35pc

Britain 27pc

Australia 25pc

New Zealand 22pc

United States 20pc