In an increasingly challenging economy, technology companies need clear visibility into where revenue leakage occurs. Software usage data and compliance intelligence can provide essential insights that identify losses and help businesses convert piracy into profit.
The second report in the Revenera Monetization Monitor 2025 Outlook series examines software piracy, misuse, and overuse. This report outlines how data-driven and usage-based monetization strategies can help prevent revenue leakage, and the headline results are significant:
- 1/3 of respondents now report piracy, overuse, and misuse as a “major problem”
- Losses of more than 30% of revenue are on the rise for all forms of unlicensed software usage
- The global use of unlicensed software presents an $18.7 billion revenue opportunity for technology companies, which is $2.5 billion higher than figures recorded last year
The general upward trend of piracy, overuse, and misuse being cited as “major” problems demonstrates the lack of visibility that many software suppliers currently encounter, highlighting the need for greater education on how to stop software piracy, with compliance monitoring, analysis, and actionable insights to reduce revenue losses.
Let’s dive further into the report.
The Landscape of Revenue Leakage
In addition to unlicensed usage, reports of inefficient monetization models and customers receiving updates they aren’t entitled to are also on the rise.
Inefficient monetization models are said to be a “major problem” for 37% of respondents, up from 32% last year and, notably, up from 17% in 2022.
Customers receiving updates they’re not entitled to has more than doubled since 2022, up from 14% to 31% – exposing a need for improved software delivery practices that are tied to entitlements.
Interestingly, the widely recognized challenge of customer churn as a “major problem” has dropped to 30%, which is lower than software piracy at 34%.
While the figures are high, the fact that there’s growing awareness of piracy is good news, as Revenera’s Software Piracy Stat Watch indicates an $18.7 billion revenue opportunity in countries with strong IP laws and a track record of successful license compliance programs.
The first step toward recovering revenue leakage is to clearly understand exactly where it is occurring. Yet, for many companies, visibility is an area they continually struggle with – especially when it comes to unlicensed use; 8% of suppliers don’t know how much revenue they lose to piracy, while 10% don’t know how much is lost to overuse and misuse.
A lack of visibility leads to companies losing sight of their customers, allowing unlicensed use to occur and revenue to leak.
Companies that implement usage-based pricing models, such as Elastic Access, can continually track usage, allowing them to pinpoint leakage, develop recovery strategies, and refine programs before significant losses occur.
Webinar: How to Build a Compliance Program to Generate Revenue
Methods of Tracking Software Piracy, Overuse, or Misuse
There are several leading strategies to identify revenue loss from unlicensed usage. For example, anecdotal reports from Sales, telemetry, and regular audits are used by 60%, 35%, and 54% of respondents, respectively.
Encouragingly, only 5% of surveyed businesses have no insight into piracy, overuse, or misuse at all, which is markedly down from 21% last year.
As 16% of respondents cite eliminating revenue leakage as the primary cause for changing their product monetization strategy over the next two years, embedded usage analytics can be incredibly beneficial, helping to demonstrate the value of product offerings and strengthen customer relationships.
Especially in times of economic uncertainty, showcasing the value of software can build loyalty and minimize losses, ultimately reducing revenue leakage. By turning to usage-based monetization and the insights it produces, software producers can pinpoint the reason for revenue leakage and formulate strategies to resolve issues.
The more product usage data your software can gather and the greater visualization it provides, the more prepared you will be to identify piracy and compliance issues and overcome them.
To learn more about the latest industry trends in software compliance and piracy, please download the full Monetization Monitor report.
