One nation, one disk. That's what they used to say about Israel, and what they meant is that one Israeli would actually buy the software, then everybody else would copy it. A recent study by IDC reveals however, that the joke is obsolete.

The study found that 35% of the software installed in 2006 on personal computers worldwide was obtained illegally, amounting to nearly $40 billion in global losses to software companies. Put otherwise, for every $2 paid for software, one dollar worth of programs was bootlegged.

IDC said that progress was noted in many emerging markets, especially China, where the piracy rate tumbled 10% in three years, and in Russia, where piracy shrank 7% in that time.

Israel ranked 15th among the 20 countries with the lowest incidence of software piracy.

The U.S. ranks the highest, with the lowest incidence of bootleg software - 21%. Second is New Zealand. But the U.S. , being a giant market, suffered the worst losses due to piracy: $7.3 billion, IDC found.

Israel was in 15th place with a software piracy incidence of 32%. Losses to software firms rose however to $102 million in 2006, from $84 million the year before.

Below it is Canada, with 34%, then the Arab Emirates, with 35%.

Last on the list of the 20 is Singapore, with 39%.

"Over the next four years, businesses and consumers worldwide will spend $350 billion on PC software. If current trends continue, the study predicts more than $180 billion worth of PC software will be pirated during that period," IDC wrote in a statement.

Now to glance at the list of the 20 worst offenders - Armenia is on top, with a piracy rate of 95%. Azerbaijan and Moldova are next with rates of 94% each.

IDC conducted the review for the Business Software Alliance, which is fighting software piracy in the name of business.