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FAQs: Intellectual Property

What is Software Piracy?

This information comes from the Business Software Alliance (BSA), an alliance of software companies dedicated to strict enforcement of copyright around the world.

As the number of computers and Internet use grow, the incidence of software piracy grows as well. Forty percent of the world's software is pirated. Software Piracy is not only a crime, but it can destroy computers and data. Perhaps the most visible type of software piracy is the sale of counterfeit CD-ROMS in retail outlets. However, there exist numerous forms of software piracy, each of which contributes to the billions lost in revenue to the software industry annually.

The five common types of software piracy are:

  • End-user piracy
    This is the most damaging form of software piracy to the BSA, and is also known as "corporate end-user piracy". This occurs when businesses, schools, non-profit organizations and government institutions make additional copies of software without authorization. End-user piracy can take the following forms:
    1. Using one licensed copy to install a program on multiple computers.
    2. Copying disks for installation and distribution.
    3. Taking advantage of upgrade offers without having a legal copy of the version to be upgraded.
    4. Acquiring academic or other restricted or non-retail software without a license for commercial use.
    5. Swapping disks in or outside the workplace.
  • Client-server Overuse
    This occurs when too many employees on a network use a central copy of a program at the same time.
  • Internet Piracy
    While there are many publishers who offer authorized versions of their software for sale online, there are numerous pirate operations on the Internet as well:
    1. Pirate websites that make software available for free download or in exchange for uploaded programs.
    2. Internet auction sites that offer counterfeit, out-of-channel, infringing copyright software.
    3. Peer-to-Peer networks that enable unauthorized transfer of copyrighted programs.
    Internet piracy represents perhaps the single greatest threat to e-commerce.
  • Hard Disk Loading
    This occurs when the business who sells you a new computer loads illegal copies of software onto its hard disk to make the purchase of the machine more attractive.
  • Software Counterfeiting
    This is the illegal duplication and sale of copyrighted material with the intent of directly imitating the copyrighted product. In the case of packaged software, it is common to find counterfeit copies of CDs or diskettes, incorporating the software program, as well as related packaging, manuals, license agreements, labels, registration cards, and security features.

(October 2007)

The above is intended to provide general information only. The contents do not constitute legal advice and should not be relied upon as such. If legal advice or other expert assistance is required, the services of competent professionals should be sought.


For further information, please contact Mr. Edward Kelly, Partner, Intellectual Property Department (edward.k@tillekeandgibbins.com).


 

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