Most people would never consider stealing something that did not belong to them. But those who copy software without authorization are, in fact, stealing someone else's property — their intellectual property. And they are breaking the law.
You may not realize it, but software development involves a team effort that blends the creative ideas and talents of programmers, writers and graphic artists. And like most creative works, such as books, music and films, computer software is protected by U.S. copyright laws.
What are the penalties for pirating software?
Software theft is a serious matter. If you or your company is caught copying software, you may be held liable under both civil and criminal law.
If the copyright owner brings a civil action against you, the owner can seek to stop you from using its software immediately and can also request monetary damages. The copyright owner may then choose between actual damages, which includes the amount it has lost because of your infringement as well as any profits attributable to the infringement, and statutory damages, which can be as much as $150,000 for each program copied. In addition, the government can criminally prosecute you for copyright infringement. If convicted, you can be fined up to $250,000, or sentenced to jail for up to five years, or both.
Apart from legal consequences, using copied or counterfeit software also means:
- Greater exposure to software viruses, corrupt disks, or otherwise defective software
- Inadequate or no documentation. No warranties.
- Lack of technical product support available to properly licensed users
- Ineligibility for software upgrades offered to properly licensed users
What are your responsibilities as a software user?
Your first responsibility as a software user is to purchase only legitimate software products. When buying software, make sure you get genuine disks, manuals, and license documentation. Avoid loose or hand–labeled disks or software that is offered at prices "too good to be true." Be wary of unscrupulous Internet vendors who advertise attractive deals on "genuine" software that was overstocked or otherwise discounted for inventory reasons. Keep in mind that a high percentage of software sold through online auctions is illegal.
If convicted in a federal criminal copyright infringement case, you can be fined up to $250,000, sentenced to jail for up to five years, or both.
Next, you have a responsibility to install and use your software in accordance with the license agreement. Since these agreements differ from publisher to publisher, you need to read them carefully. When someone else installs the purchased software, be sure that individual provides you with proof that the product is properly licensed. If you have outsourced your information technology needs to a consultant or application service provider, you are still responsible for software license compliance.
Software piracy is not a victimless crime. Piracy denies the software developer its rightful revenue and harms consumers and the industry as a whole. All software developers, both big and small, spend years creating software. A portion of every dollar spent in purchasing original software is funneled back into research and development, so that newer, more advanced software can be produced. When you purchase illegal or counterfeit copies, your money goes straight into the pockets of software pirates.
What is the economic impact of software piracy?
In the United States, 24 percent of all business software is unlicensed. The Business Software Alliance (BSA) estimates that in 2000 the industry lost more than $2.6 billion in revenue in the United States alone due to software theft. But software piracy's damaging economic impact is not just confined to the software industry. In fact, software piracy has an effect on the economic health of the nation as a whole. In 1999, the United States suffered a staggering 107,000 job losses, $5.3 billion in lost wages and $1.8 billion in lost tax revenue due to pirated software.
What is the government's commitment to legal software?
Not only is the U.S. government continually striving to uphold and enforce intellectual property rights, but it has also become a leader in software management and legalization practices. In 1998, the federal government reinforced its own commitment to the use of legal, licensed computer software by requiring that all government agencies and contractors use only legal software. Since then, numerous state governments have begun to follow suit.
What more can you do to prevent piracy?
For more information about software piracy, to obtain a free software management guide, or to report piracy, call the toll–free BSA Anti–Piracy Hotline at 1–888–NO–PIRACY or log on at www.bsa.org.
Download a free copy of Software Piracy and the Law (PDF).
© 2000–2003 The Business Software Alliance
