Software Piracy

A Brief
Issues for Discussion
 Meaning of Software piracy
 Forms of Software Piracy
 Factors behind software piracy
 Risks of Pirated Software
 Addressing the Problem of Software Piracy
What is software piracy?
 A software product is normally associated with license terms and
conditions.
 Specifically to address how end user should interact with the software
product both for the interest of the producer and consumer
 When terms and conditions are violated, producers of software can
take legal action against the violators
 Violations can be in form of copying, downloading, sharing, selling, or
installing
 Software piracy can be defined as illegal copying, downloading,
sharing, selling or installing of copyrighted software.
What is software piracy?...
The Global Software Survey conducted by Business Soft-ware Alliance
(BSA)in partnership with International Data Corporation (IDC)shows
that 43 percent of the software installed on personal computers around
the world in 2013 were not properly licensed.

 What will be the statistics today?

 Think of the magnitude of the problem above? If you were a software
producer what would have been your reaction? What is your reaction as a
software user?
Forms of Software Piracy
• Software piracy occurs in different forms at both end user and
company point of view.
• Happens when individuals and businesses make copies of software
without a license to do so
• People may copy a program and give it to others knowingly or
unknowingly that they infringe the rights of the software producers
• Similarly an organization may install software on more computers
than its license permit
• Software and Information Industry Association (SIIA) and BSA have
listed the following common types of software
Forms of Software Piracy…
• Softlifting: Softlifting is the act of illegal copying of software and
distributing it to friends, organizations or duplication and resale in
violation of the terms of the license agreement. Many personal users
and enterprises are doing it knowingly or unknowingly and only few
of them care about it.
• Softlifting is sometimes referred to End User Piracy as in both cases
on copy of software is purchased for a particular machine and later
installed on several machines in violations of copyright terms.
Forms of Software Piracy…
• Internet Piracy: Refers to downloading or uploading of illegal copies
of software over the internet.
• Nowadays, Internet piracy is one of the fastest and easiest ways to
receive pirated software. There are several websites that make
software available for free download in a number of ways.
• Many computer users download software from the Internet, which
makes their lives easy as they do not even need to visit stores or
sending out copies of software on a CD-ROM or floppy disk.
Forms of Software Piracy…
• Hard-disk loading: Hard-disk loading occurs when an individual or
company sells computers preloaded with illegal copies of software
into the hard disks to encourage the consumer to buy their products.
• It is often committed by hardware dealers trying to lure customers.
• The dealer usually does not provide the buyer with manuals or the
original CDs of the software.
Forms of Software Piracy…
• Software counterfeiting: Software counterfeiting is illegal duplication
and sale of copyrighted software in such a way that it appears to be
authentic.
• Counterfeit software includes accompanying manuals that the
original legitimate software was sold and is usually sold at prices
well below that of the retail price of the legitimate software.
Forms of Software Piracy…
• Unauthorized use of academic software: Many software companies
sell academic versions of their software to public schools,
universities and other educational institutions.
• When the software is labelled to use for academic or educational
purposes only, it cannot be used for commercial or other for-profit
purposes.
• Using academic software for private use in violation of the software
license is a form of software piracy and it not only hurts the software
publisher, but also the institution that was the intended recipient of
the software.
Forms of Software Piracy…
• Renting: Renting involves someone renting out a copy of licensed
software for temporary purposes.
• In such type of piracy, software is rented to individual computers and
returned the original software to the renter.
• This method of piracy is not as common as other forms of piracy due
to its distribution nature but it still does exist. It has always been
illegal to rent unauthorized copies of software.
Forms of Software Piracy…
• OEM unbundling: Often just called "unbundling," this form of piracy
means selling stand-alone software originally meant to be included
with a specific accompanying product.
• An example of this form of piracy is someone providing drivers to a
specific printer without authorization.
Factors behind software piracy
Human beings naturally love free stuff and will not hesitate to have
one when opportunity arise.
The magnitude of software piracy varies in different countries. In
some countries, the legal protection for software does not exist while
in some other countries laws are rarely enforced.
In addition, many buyers believe they have the right to copy the
software for which they pay a huge amount of money.
Factors behind software piracy…
 Public awareness
 High price of software
 Legal enforcement
 Social and cultural factors
 Pirated software on the Internet (supply side)
 Growth in technology (high speed internet, diffusion of computers,
etc.)
Risks of Pirated Software
There are several risks of using pirated software to individuals and
enterprises. Apart from the legal consequences, the pirated software
does not have any warranty to protect itself as well as it increases the
chances of not functioning correctly. It increases the risk of exposure to
malware and data loss.
Risks of Pirated Software
Risks to Individuals:
• Putting devices and equipment at risk of security threats and possible
damages
• Risk of exposure to malware and data loss involved with theft of personal
data
• Legal Consequences: Civil and Criminal Penalties, Legal Actions by
Copyright Holders
• Lack of Support and Updates: No Technical Support, No Upgrade or Patches
• Copyright infringement
• Hidden Costs: initially seen as cost-saving measure, the risks associated
with legal consequences, security threats, and potential loss of productivity
can result in unforeseen financial burdens.
Risks of Pirated Software
Risks to enterprises:
• Cybersecurity breaches is significant, such as Vulnerabilities and Exploits,
Malware and Backdoors etc
• Operational Disruptions: Unreliable Software, Business Continuity etc
• Reputation Damage: Public Perception:
• Financial Impact: Cost of Compliance, Loss of Productivity etc
• Lack of CIA due to use of pirated software
• Legal Consequences: Fines and Penalties
• Loss of Competitive Advantage: Innovation and Competitiveness
• Intellectual Property Concerns: Ethical Considerations
• Supply Chain Risks: Third-party Risks
Addressing the Problem of Software Piracy
• Legal framework: Enforcement of Copyright Laws, International
Cooperation for both local and international (WIPO WCT 1996,
Copyright and Neighboring Rights, 1999 – Part II Sec 5(2)b)
• Public Awareness: Public Awareness Campaigns, Training and
Certification Programs etc
• Technological solutions: Enhanced Anti-Piracy Technologies and
Digital Rights Management (DRM) to track contractual violations
• Strategic Licensing Models: Affordable Licensing Options, Volume
Licensing for Businesses etc
Addressing the Problem of Software Piracy
• Collaboration with Internet Service Providers (ISPs): Block Pirated
Software Downloads, Educational Messages etc
• Support for Enforcement Agencies: Cooperation with Law
Enforcement, Whistleblower Programs etc
Copyright law and subsequent related international laws stipulates
what work needs to be protected, what rights needs to be protected,
duration of protection, and consequences to infringement of protected
rights)