Software Piracy

In: Business and Management

Submitted By moonside
Words 1911
Pages 8
With the vast expansion of technology in recent years, and the exponential growth of information due to the Internet, businesses have faced many changes and challenges. Not all change has been positive, however; with the increased anonymity and ease of sharing information, piracy has become a very real issue for companies, both in and out of the workplace.
Piracy can be segmented into two main industries; the multimedia industry which involves the copying of songs, videos and games, and the software industry which is the copying of software licences. For the purpose of this paper, we will be discussing the implications of software piracy, its effects on everyday businesses, and also briefly cover the effects on the industry itself. We will apply the theoretical framework and specify what this issue means to business managers in a practical setting.
History
Software Piracy originated in the 1960’s when the CD-RW drive was invented and floppy disks were traded. Since that time, the industry has grown significantly, especially in developing countries, resulting in billions of dollars of lost economic benefits and tax revenue.
Prior to the 1980’s, one could pirate software without any legal implications. However, in the late 1970’s, Bill Gates, founder of Microsoft, lobbied for legislation to protect the integrity of software. When an individual or organization purchases software, it is the license to use the software that is purchased, not the software itself. As a result, Software Piracy is now an illegal act in most countries.
One of the main advantages of Software Piracy is cost: the software is free or almost free to obtain. In addition, the software is easy to obtain, most often through the internet. However, pirating software brings with it many disadvantages; the main disadvantage being the activity is an illegal offense. Not only is pirating…...

Similar Documents

Software Piracy Research

...only through the hardware devices but also some great softwares. Nobody's PC and tablet can run well without the necessary software, but there' re a number of software users don't want to buy the full licensed softwares. In order to have a accurate percentage of software piracy rate, BSA (business software alliance) made a research about it. The result of the piracy rate research made the researchers shocked. On the BSA's piracy study on 2011, total worldwide software piracy rate is up to 42% (Business Software Alliance, 2011) . Software piracy has become an increasing global problem to businesses and software developers in the world during the past two decades (Shin, Gopal, Sanders, & Whinston, 2004). The software industry suffers billions dollar losses because of software piracy (Bass, 2011). There' s no denying that U.S. is generally considered as the world leader in the software industry, but America' s illegal software market is worth 9 billion dollars in 2011, which is the top 1 economy in commercial value of pirated PC software (BSA, 2011). The problem of piracy diminishes revenues and lessens investment in research and development, threatening the long term benefit of the software industry. According to the Software and Information Industry Association, the worldwide revenue of business-based PC applications was $21.6 billion in 1999, but global revenue losses due to piracy in the business application software market were calculated at $12 billion (Shin, Gopal,......

Words: 1039 - Pages: 5

Software Copyright Piracy & Laws

...Software Copyright Piracy & Laws | Business Law | | This paper contains both recent and past accounts of software piracy cases. Also within the contents are definitions of what software piracy is and what has and can be done to help stop copyright infringement. | | Brandon Sampsell | 4/19/2012 | | Software Copyright Piracy & Laws The definition of software piracy is the illegal copying of software for commercial or personal gain. Software companies have tried many methods to prevent piracy, with varying degrees of success. Several agencies like the Software Publishers Association and the Business Software Alliance have been formed to combat both worldwide and domestic piracy. Software piracy is an unresolved, worldwide problem, costing millions of dollars in lost revenue. In a more recent case, the case of Universal Music Australia Pty Ltd v Sharman License Holdings Ltd (2005) 220 ALR 1 was high-profile Australian litigation involving music labels suing the developers and distributors (collectively referred to as "the Sharman parties") of software that enabled access to the Kazaa a p2p network. The software, which was made available for free, enabled users to upload and download digital files like music files or data files. However, unlike earlier p2p networks the Kazaa network did not require operation through centralized servers, nor physical involvement in the transmission of the files. The essence of the litigation concerned the......

Words: 2318 - Pages: 10

Government, Private Companies Losing P14.6b to Software Piracy

...Case 3: Government, Private Companies losing P14.6B to Software Piracy 1. Executive Summary Seven out of 10 software programs installed in computers in the Philippines are unlicensed, resulting to losses of P14.6 billion in 2011, the Intellectual Property Office of the Philippines (IPOPHL) on August 16 said during the launch of its educational campaign geared at addressing high software piracy rate. Through the campaign dubbed “Be Aware of Your Software: Maximize the Benefits, Minimize the Risks,” aims to inform the public of the perks and perils of using pirated software. IPOPHL will be inviting companies to undergo a software usage survey to check if they are using licensed software. Those that don’t comply will be recommended by IPOPHL representatives for further sanction by enforcement agencies – Optical Media Board (OMB), Philippine National Police (PNP) and National Bureau of Investigation (NBI). These agencies are part of the Pilipinas Anti-Piracy Team (PAPT). POPHL, however, is limited to inspection and survey when it comes to intellectual property rights.   “Ironic… At present, we do not have enforcement powers… we still need the enforcement agencies to file the case,” Gepty said. This is why IPOPHL is pushing for the passage of Senate Bill 301 or the Copyright Bill, which empowers IPOPHL to inspect and survey private companies and government agencies on IP Code compliance. For now, IPOPHL can inspect or survey companies only if they consent to be placed......

Words: 623 - Pages: 3

Piracy

...girl unless she was forced. Pirates often turned to piracy in protest against oppressive conditions at home or on merchant ships. The life of a free unrestrained outlaw is what they sought. While there aren’t very many real pirates left in the world today we do still have a major problem with piracy. Pirates no longer require war ships, daggers or swords just computers and advanced technology. People who rebel against the common laws of our nations and who only care about filling their pockets and about their own well-being. Today’s pirates are pirates of technology, stealing information from cds’, dvds’, blue rays’ and computer software. Easy money with little work and a huge return. We can see movies not yet released, listen to music that hasn’t come available yet and get the latest computer software at half the cost. For some people, these pirates are awesome and saves them a bunch of money they either don’t have or don’t want to spend. Others just consider them thieves. They are stealing information from corporations and movie companies and costing them billions of dollars each year. These are people who cheat the system and should suffer the consequences. Piracy affects all of us. It starts with the movie companies and corporations losing money therefore the artist or creator of the information loses money and that loss is passed down to the average consumer who actually goes to the store to buy a movie or cd. Piracy is quite obviously an accepted method of receiving......

Words: 621 - Pages: 3

Piracy

...Klodd Moore Mr. Vauhn EN 1320 8/7/13 Piracy vs. Copyright Violation The ongoing dispute over illegal Internet-based file sharing between the entertainment and software industries and the vast, online pirating community has been one of the most debated topics. Gripping public attention for the past decades. Napster, a website created by a college dropout became an empire. Used by hundreds of millions of people, that robs billions in revenue each year. Although these rogue websites claimed to only be hosts for illegal file sharing, the United States government took action to eliminate Internet piracy and protect copyright by implementing digital encryption technologies and strict laws that prohibit tampering with these encryptions. The trafficking of copyrighted goods must be put to an end because it promotes illegal transactions of an owner’s intellectual property, causing sales in the entertainment and software industries to plummet and thereby restricts the growth of the economy. Internet piracy is the unlawful reproduction and/or distribution of any copyrighted digital file without the permission from the owner. It is driven by the consumers demand for a desirable product that would otherwise be unobtainable, either because of financial limitations or cultural factors, such as the Chinese culture’s emphasis that the free sharing of knowledge creates and preserves both civilization and traditional values across generations (Lu 310). Consequently, such a mindset that......

Words: 1422 - Pages: 6

Microsoft Corporation: Software Piracy and License Misuse

...in over 100 countries. *COMING FACE TO FACE WITH PIRAC*Y "Even though we focus on enterprise class software, we see a lot of piracy, and it is a big problem. Mostly it is compliance issues rather than outright piracy. And although we see more of this internationally than in the U.S., the U.S. is still a problem." -- Microsoft Certified Partner, USA Ecosystem members run into piracy and license misuse every day in at least two ways: They find it in their customer base when deploying new solutions or services. They find it in competition with companies that bundle or otherwise incorporate pirated software into their own solutions, sometimes without customer knowledge. The unlicensed software gets into customer environments a number of ways, from counterfeiting and {draw:rect} REPORT A survey commissioned by Microsoft and conducted by IDC, a global provider of market intelligence, in November 2007 reported that more than 80 percent of commercial enterprises across Russia continue to use unlicensed or pirated software. “Many company directors still think procuring software legally is not cost effective and inevitably involves extra expenses like training of IT managers or paying for software upgrades,” said Leonid Klyaiman, Microsoft’s product manager in Russia. “Such ignorance has encouraged a preference for unlicensed software in many companies.” The survey polled directors and IT managers in 500 companies across five federal......

Words: 1417 - Pages: 6

Software Piracy

...Copyright and Book Piracy in Pakistan Khalid Mahmood Department of Library & Information Science, University of the Punjab, Lahore Muhammad Ilyas Department of Library & Information Science, University of Balochistan, Quetta Copyright Defined Copyright is a legal term describing rights given to creators for their literary and artistic works. Kinds of works covered by copyright include: literary works such as novels, poems, plays, reference works, newspapers and computer programs; databases; films, musical compositions, and choreography; artistic works such as paintings, drawings, photographs and sculpture; architecture; and advertisements, maps and technical drawings. Legal Definition of Copyright According to The Copyright Ordinance, 1962 The exclusive right to reproduce the work in any material form to publish the work to perform the work in public to produce, reproduce, perform or publish any translation of the work to broadcast the work to make any adaptation of the work Book Piracy Deliberate infringement of copyright on intellectual property and an absolute disregard for ownership or authorship of literary works OR Using another person’s opinion, ideas or works as if they were one’s own and without making any attempt at acknowledging their true source The Berne Convention Adopted by an international conference held in 1886 at Berne, Switzerland 8th amendment in 1979 Salient features: National......

Words: 1254 - Pages: 6

Software Piracy Under Ipr Regime

...An Overview on SOFTWARE PIRACY under Intellectual Property Right Regime e1834 Abinash Chandra Nayak (SOFTWARE PIRACY IS "UNAUTHORIZED COPYING OR DISTRIBUTION OF COPYRIGHTED SOFTWARE .") SOFTWARE PIRACY IS A VIOLATION OF COPYRIGHT LAW AND A FORM OF THEFT . What Is Software Piracy? The definition of software piracy is the "unauthorized copying or distribution of copyrighted software." While this definition may sound simple, its impact and affect are anything but. In 2008, worldwide software piracy rates rose to 41 percent, with losses estimated at $50.2 billion, according to a study by the Business Software Alliance. Identification Whether you purchase software from a retail store or download installation files from an Internet site, a user license, not the CD or possession of installation files, is what gives you the right to install and use the software. The license you purchase defines specific terms and conditions regarding legal use of the software, such as how many computers you may install the software on, or whether you can transfer the software to another computer. Any actions you take outside the limits of the license constitute software piracy. 1 Methods Software piracy can take many forms, but one of the most common includes counterfeiting, or a licensed user making duplicate copies of the software to sell or give away, with or without providing codes to unlicensed users as a work-around to anti-piracy features. Other piracy methods include ...

Words: 2493 - Pages: 10

Piracy

...COMM 340 (03) Team #6 PIRACY: AVOIDING ATTACKS AND MINIMIZING THE IMPACTS Brock Josuttes 11094753 Nathan Keck 11123768 Josh MacGowan 11108277 Brittany Saunders 11099828 Brenley Schaan 11142699   PIRACY:  AVOIDING  ATTACKS  AND  MINIMIZING  THE  IMPACTS   2   TABLE OF CONTENTS Introduction .......................................................................................................................3 Anticipation .......................................................................................................................3 Location Risk ....................................................................................................................4 Northern and Western Indian Ocean.............................................................................4 Southeast Asia ..............................................................................................................4 Gulf of Guinea ...............................................................................................................4 Economic Risk ..................................................................................................................5 Prevention of Piracy (Currently Used Methods) ...............................................................5 Security .........................................................................................................................6 Strategic Route Selection ...............

Words: 3256 - Pages: 14

Digital Piracy

...Digital piracy is making up profit from illegal copying and reselling music, videos, software videogames and other digital media which requires genuine. In 2005, loses of legal media and software industry from digital piracy was $200 billion (DSTI/IND (2007). Also, Oberholzer-Gee (2010) indicates that 60% of World Wide Web broadband busy by consumers’ video, game and music sharing. To avoid this issue intellectual proprietors use various methods. In this paper is shown methods to dodge problem of digital piracy. There are two ways to protect legal digital content from piracy. Firstly, there is indirectly impact to society, where manufacturers are producing additional equipment like guitars for game “Guitar Hero” and forwarding special social services where people can play with each other via internet, so while people playing, system is checking license (Goel, 2010). In addition, companies perform free software with fewer options than paid software. Moreover, some organizations such as Free Software Association and Open Source agitation, which advert spreading software for free have helped to grapple with problem of expensive software and companies that gain from this, for example, Microsoft (Hill, 2007). Secondly, there is direct impact on users, where companies and internet providers use methods which impacts directly on users such as blocking peer-to-peer connections between users and web-sites where users can download pirated software. Furthermore, closing the sources......

Words: 1577 - Pages: 7

Why Is Software Piracy so Pervasive

...Why is software piracy so pervasive? I believe software piracy is so wide-spread because of the easy method for sharing this software world-wide through the internet. With peer-to-peer sharing through torrent sites a person can share software with the world. Without the ability to share software on the internet piracy would be much less pervasive. I have heard some people make the excuse for using pirated software on the exorbitant profits that companies like Microsoft are generating due to overpriced software. Years ago there was an outcry that Microsoft should give a discount when a person purchased multiple copies. In response, Microsoft did finally offer a discounted Family Pak for their OS and Office. I also believe the conversion to digital formats like eBooks and mp3’s has made it easier to pirate these types of products. What are your innovative ideas to reduce this problem? This is a battle that I feel the software industry is losing although they have put up a fight. We have seen torrent sites shut down, individuals jailed, and people fined and yet pirating only seems to grow. Popular sites like isohunt and Demonoid which were shut down by the MPAA have resurrected their torrent site in different countries. Over the years the software industry has tried numerous methods including serial numbers, activation, and more recently online activation and authentication as Microsoft started with the new Office 2013, but it seems hackers continue to find methods...

Words: 312 - Pages: 2

Software Piracy

...Software Piracy in Pakistan Piracy is considered to be illegally spreading of anyone’s work. Being an illegal act measures should be taken to ban it and violators should be punished. The history of piracy goes back to the ancient times when people started trading and they were robbed in their ways to the destination. In the 20th century the word piracy was expanded to redistributing, selling or copying of some ones work without one’s consent. With the advancement of technology and individual work, the piracy on individual or company level is also becoming a burning issue. For instance radio piracy consists of unofficial and part-time broadcasting of different channels. Similar is the case of electronic media where stealing and distribution of CDs, DVDs, softwares, soft copies of documents and other stuff has become common. Among these piracies of electronic media, illegal use of softwares is the utmost issue of today’s world of technology. Software piracy is the illegal copying, distribution, unauthorized resale, software counterfeiting and cracking for personal use. It is obviously an illegal act as it is considered as confiscating one’s intellectual property. In software piracy, software is purchased by one person for one single computer or organization & it is then duplicated as backup or given to other people for their personal use. The different types of software piracy include end user piracy, reseller piracy, trade name infringement and internet piracy. These all......

Words: 2501 - Pages: 11

Software Piracy

...Week 1 Assignment Software piracy is the illegal copying, distribution, or use of software. It is such a profitable "business" that it has caught the attention of organized crime groups in a number of countries. When you purchase a commercial software package, an end user license agreement ( EULA) is included to protect that software program from copyright infringement. Typically, the license states that you can install the original copy of software you bought on one computer and that you can make a backup copy in case the original is lost or damaged. You agree to the licensing agreement when you open the software package (this is called a shrink wrap license), when you open the envelope that contains the software disks, or when you install the software. 2 organizations that that work to prevent software piracy is SIIA and FAST. The Software & Information Industry Association (SIIA) is a trade organization for the software and digital content industry. SIIA offers global services in business development, government relations, corporate education, and intellectual property protection to companies. It also advocates a legal and regulatory environment that benefits the entire industry. The Federation Against Software Theft was set up in 1984 by the British Computer Society's Copyright Committee, and was the first software copyright organization in the U.K. Its first action was to raise the awareness of software piracy and to lobby the U.K. Parliament for changes in the......

Words: 490 - Pages: 2

Piracy

...known major market for “knock-off” products and counterfeiting production. Many US manufacturers are involved at various levels in efforts to stem losses emanating from the Pacific Rim Region. The paper looks at some of the implications of this economic issue and how Pfizer Incorporated, as part of the American research-based pharmaceutical industry approached it. The paper examines the history of counterfeiting and reasons why China had become a significant global source for fake products. The author discusses the degree to which illegal counterfeiting of western-made goods is undertaken in China. The paper examines the role of industry, governments and consumers in the trade of goods produced as a result of intellectual property piracy. The author concludes his paper by drawing a parallel between Chinese action in global political matters and its approach to global trade matters. - THIS PAGE INTENTIONALLY LEFT BLANK - TABLE OF CONTENTS ABSTRACT III PREFACE vii PRODUCT COUNTERFEITING IN CHINA AND ONE AMERICAN COMPANY’S RESPONSE 1 Historical synopsis of Chinese – U.S. relations 2 Chinese transition to world economy 3 Pfizer Incorporated 5 The counterfeiting problem 7 Pfizer’s Anti-Counterfeiting Efforts 10 Pfizer’s Road Ahead 14 Other Corporate responses 16 THE Chinese position 18 American governmental efforts 20 chinese intentions 21 ENDNOTES 23 BIBLIOGRAPHY 27 - This Page......

Words: 8985 - Pages: 36

Piracy

...Piracy- Now a major offense PHI 300 SEC 1 EMPL ID 773958 In America, the RIAA (Recording Industry Association of America) is the trade organization that works to protect intellectual property of artists and music labels. They attempt to prevent piracy of artists’ work by in some cases prosecuting offenders. According to the RIAA, global piracy causes $12.5 billion of economic losses every year, 71060 U.S. jobs lost, a loss of $2.7 billion in workers earnings (RIAA). How exactly then do prosecutors solve this issue? Their answer is to sue for excessive amounts, and even prosecuting to where it can lead up to 5 years in prison. One prime example of this unfair justice is the fairly new case involving Jammie Thomas-Rasset, who illegally downloaded over 1700 songs from a p2p network. It is unethical for such a corporation to incarcerate or even sue for such a misdemeanor offense (Barret, 2010). The evolution of how we obtain music has become easier to the public due to programs that allow people to download single songs or even albums, preventing them from having to leave their homes. Although it may seem effortless, downloading music has some stipulations that go along with how you are receiving the files. Basically what it boils down to is, if you did not pay for it, then it is illegal and considered piracy (RIAA). Illegal actions should be dealt with, but the question is, “Should the RIAA be rewarded such unruly amounts of cash, or better yet send people to jail......

Words: 1326 - Pages: 6

Obyczajowy | Bruce Denny | Scientific Method