Software Piracy
Software Publishers Association
June 28, 2010
Shaniel Brown
CS 110
Professor Russell
Software piracy is an illegal act defined as the unauthorized use
and distribution of software. It has been a major issue for many companies
and individuals all over the world. This type of activity has been increasing
over the years and has caused companies millions of dollars in revenue
losses. In recent years, statistics have shown that the use of illegal
software has increased despite improvements in procedures used to
enforce restrictions on access. Recognizing this growing concern, many
organizations have been formed in order to challenge this particular
problem. Organizations such as the (SIIA) Software & Information Industry
Association and the Math Works are highly dedicated to reducing the use
of illegal software around the world in an effort to protect businesses and
individual talents. Due to the numerous risks exposed to end-users and
businesses alike, serious action must be taken to reduce and eliminate the
distribution and use of pirated software.
Unlawful software piracy comes in several different forms. The
most commonly used and popular sources of illegal software are software
counterfeiting, hard disk loading and soft lifting. The first is software
counterfeiting, which is the illegal distribution and sale of unlicensed
copyrighted software which is made to appear genuine during its sale to
the end-user. This leads the buyer into believing that the software they
purchased is legitimately licensed and supported when in fact the seller
was only providing an unauthorized copy made to look genuine. Another
common form of piracy is hard disk loading, which is when unlicensed
software is unlawfully pre-installing onto the hard drives of new personal
computers. This is often down to entice customers into purchasing
hardware from that particular seller. An example might be a local
computer shop that includes an unauthorized copy of Microsoft Office
Suite to make the computer seem like a better value to the customer.
Finally, soft lifting is defined as distributing illegal copies of purchased
software to peers while ignoring the software license policy. This is
generally the most common transaction method of sharing software and it
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increases the software piracy scale tremendously. Some examples of
online soft lifting piracy take place with operating systems such as,
versions of Microsoft Windows and Office along with most other modern
computer games and applications. Whenever a popular new game or
operating system is released, multiple types of peer to peer distribution
channels such as the Bittorrent network or online newsgroups make the
programs available for individuals to download usually as soon as they
become available for sale.
These methods of piracy expose enormous amounts of
individuals to several serious risks. First of all, since these users are
obtaining the software illegitimately, there is no guarantee that their
download won’t contain malicious software such as viruses, worms or
Trojans. Some nefarious internet predators will even actively post fake
versions of popular software to lure people into downloading malicious
code. This allows them to gain access to unsuspecting users’
computers, and even view their personal data such as banking
information or credit card numbers.
A second risk involved with this issue is that since the software
was obtained illegally, those downloading would not be able to receive
future updates. Their un-patched software could be potentially
dangerous for several reasons. Software bugs that are unfixed could
lead to countless problems for example: performance issues,
incompatibility, incorrect calculations, corrupt data, and security
breaches where sensitive data could be stolen. Un-patched software
containing bugs like these cannot be fixed easily.
Another downside for unauthorized software is the since the
software is not registered individuals cannot contact the development
company for support because that company would know the product
was not licensed. An example of this problem would be, if the software
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did not install properly or suddenly stopped working. Users could not
contact the software maker for assistance because they would not be
able to provide a valid registration key to enable expert assistance.
A more serious risk to software pirates are the various copyright
infringement laws. Violators can face fines and possible jail time if
convicted. For example, if convicted of software copyright infringement,
penalties include jail time from 5 to 10 years depending on the type of
violation. Also, there are fines that range from $1,000 to $2,500 or more
based on the violation.
The people downloading the software are not the only ones at
risk. Software companies also feel the effects of piracy, because it
results in a direct loss of revenue. This reduction in sales has caused a
significant amount of problems to companies who produce and
distribute software as their general business. Depending on the
popularity of the software application, users distributing the program
could result in millions of lost revenue for companies. Depending on the
complexity of the software, companies may hire thousands of
programmers and spend millions on research and development. By
losing potential profits, developers may not be able to fund all the
requirements planned for when initially crafting a new software
package. Increased sales and revenues provide an extra incentive for
companies to create the best software possible and include future
updates with new enhancements and features.
Due to the problems software piracy has caused developers,
several steps have been taken to curb unauthorized distribution and
use. Digital Rights Management is a field designed to prevent
unauthorized use. Several companies have developed copy protection
to prevent piracy. Some methods include mechanisms simply for
preventing users from making copies of discs. Registration and
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activation systems are used to keep track of legitimate customers and
lockout unauthorized users. Also, many new computer games require
online activation and account creation to enable multiplayer
functionality.
New laws and penalties are also aimed at reducing copyright
infringement. The (DCMA) Digital Millennium Copyright Act was passed in
October 1998 and signed by former president Bill Clinton. This law limits
the production of technology to a user that is in position of copyrighted
material that was illegally obtained. This law directly prohibits the act of
overriding copy protection software. It also increases the penalties for
copyright infringement over the internet. This law was a huge step in
providing assurance to companies in protecting their copyrighted works.
Software piracy has been a major issue for users and businesses
for quite some time. Users downloading unlawfully must deal with the
uncertainty of unauthorized software. Risks like malicious viruses and
worms, bugs caused from un-patched software, lack of support and
documentation, and possible legal penalties are always a concern.
Businesses struggle with reduced income levels and lower research and
development funds which result in lower quality and decreased incentive
to create superior products. Steps have been taken with acts such as the
DCMA and forms of digital rights management, but additional resources
must be devoted to reduce the spread of piracy and eventually eliminate it
completely.
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Excel charts from survey
Question 1
Have you ever downloaded a unauthorize software off the internet?
Yes
17
No
3
Question 1
Yes
No
1
These charts contain answers about software Piracy.
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Question 2
Do you think it is ok to download software if it is too expensive?
Yes
8
No
12
Question 2
Yes
No
Question 3
Do you think the safeguards provided to avoid Piracy is any good?
Yes
14
No
6
Question 3
Yes
No
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Work Cited Page
Parson, Jamrich June, and Dan Oja. New Perspective on Introductory Computer
Concepts 2011. Jan, 2010. Print
http://www.mathworks.com/company/aboutus/policies_statements/piracy.html
http://www.siia.net/
http://www.aladdin.com/hasp/software-piracy.aspx
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