Software piracy & overuse blamed for rising revenue losses
Nearly one in three software producers identify piracy as a major cause of revenue loss, according to new industry findings examining software monetization trends and challenges for 2026. The assessment draws on data from over 500 product leaders at technology firms internationally and points to persistent unlicensed software use, particularly in markets with strong intellectual property laws.
Piracy concerns
The issue of software piracy remains widespread, with 31 percent of companies stating it is a major contributor to revenue leakage. An additional 43 percent regard it as a moderate issue. Overuse-whether intentional or not-was classified as a serious concern by 23 percent and a moderate concern by 47 percent. A further 25 percent of software suppliers said deliberate license misuse, such as configuring applications to exceed legal limits, is a major problem, while 41 percent noted it as a moderate one.
Larger enterprises reporting annual revenue above USD $250 million are most likely to cite unlicensed use as causing losses exceeding 30 percent.
Geographical hotspots
Unlicensed software use continues to occur most frequently in China and Russia, according to aggregated telemetry data. India now ranks third on the list, overtaking the United States. Germany has also seen a notable increase, rising from eleventh to sixth in global piracy activity, particularly in the engineering simulation and computer-aided design sectors. The findings suggest that even in markets with robust intellectual property protections, unlicensed use remains prevalent, but also create opportunities to convert infringers into legitimate customers using appropriate tools and data.
Telemetry shortfall
Software producers now typically capture large volumes of telemetry data to monitor usage patterns. However, 30 percent of respondents admitted to recording such data without analysing it, missing potential insights into compliance, product development opportunities, and customer churn. This underscores a significant gap between data collection and effective data-driven decision making in software licensing and revenue protection efforts.
"Most software producers struggle with the profitability of their SaaS and AI solutions, yet many overlook the opportunity to recover revenue lost to piracy and overuse. The most successful companies integrate compliance into Sales teams, treating infringement data as a pipeline of qualified leads to target," said Nicole Segerer, SVP and General Manager, Revenera.
Of suppliers, 27 percent indicated plans to enhance or introduce automated enforcement tools in their licensing and monetization strategies. The proportion of respondents unsure about how much revenue is being lost to unlicensed software has risen, from 5 percent last year to 8 percent currently. Among those without entitlement and rights management in place, that figure jumps to 50 percent, highlighting a critical area for improvement.
Revenue implications
Unlicensed software use represents a substantial and persistent revenue risk for software suppliers across regions and company sizes. While piracy is a leading cause of revenue leakage, overuse and license misuse also contribute significantly. Insights show that converting unlicensed users to paying customers is most viable in jurisdictions with successful compliance programmes and legal frameworks protecting intellectual property.
Segerer commented on the wider opportunities for usage data: "Beyond compliance, usage insights can also help with product roadmap decisions and churn prevention, yet nearly one-third of companies admit to ignoring the usage data they collect - exposing a significant blind spot that can sabotage revenue growth."
