What is the act of copying and using commercial software purchased by someone else?

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. According to the Business Software Alliance (BSA), about 36% of all software in current use is stolen. Software piracy causes significant lost revenue for publishers, which in turn results in higher prices for the consumer.

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.

Software piracy applies mainly to full-function commercial software. The time-limited or function-restricted versions of commercial software called shareware are less likely to be pirated since they are freely available. Similarly, freeware , a type of software that is copyrighted but freely distributed at no charge, also offers little incentive for piracy.

Types of software piracy include:

  • Softlifting: Borrowing and installing a copy of a software application from a colleague.
  • Client-server overuse: Installing more copies of the software than you have licenses for.
  • Hard-disk loading: Installing and selling unauthorized copies of software on refurbished or new computers.
  • Counterfeiting: Duplicating and selling copyrighted programs.
  • Online piracy: Typically involves downloading illegal software from peer-to-peer network, Internet auction or blog. (In the past, the only place to download software was from a bulletin board system and these were limited to local areas because of long distance charges while online.)

This was last updated in September 2005

Software piracy has become a worldwide issue with China, the United States, and India being the top three offenders. The commercial value of pirated software is $19 billion in North America and Western Europe and has reached $27.3 billion in the rest of the world. According to the 2018 Global Software Survey, 37% of software installed on personal computers is unlicensed software.

Software piracy doesn’t require a hacker or skilled coder. Any normal person with a computer can become a software pirate if they don’t know about the software laws. With such a widespread impact, it’s important to understand what software piracy is and the dangers it presents.

What is the act of copying and using commercial software purchased by someone else?

Software Piracy – Definition

Software piracy is the act of stealing software that is legally protected. This stealing includes copying, distributing, modifying or selling the software.

Copyright laws were originally put into place so that the people who develop software (programmers, writers, graphic artists, etc.) would get the proper credit and compensation for their work. When software piracy occurs, compensation is stolen from these copyright holders.

Software Piracy Regulation

Computer piracy is illegal and constitutes a federal crime. The monetary penalties for those who break this law can reach up to $150,000 per instance of copyright violation.

End-User License Agreement

The End-User License Agreement (EULA) is a license used for most software. It is a contract between the manufacturer and/or author and the end user. This agreement defines rules for software use and not every agreement is the same. One common rule in most EULAs prohibits users from sharing the software with others.

What is the act of copying and using commercial software purchased by someone else?

Types of Software Piracy

There are five main types of software piracy. This variety of pirating techniques explains how some individuals purposely pirate software while others may unknowingly be an accomplice.

Softlifting

Softlifting is when someone purchases one version of the software and downloads it onto multiple computers, even though the software license states it should only be downloaded once. This often occurs in business or school environments and is usually done to save money. Softlifting is the most common type of software piracy.

Client-server overuse

Client-server overuse is when too many people on a network use one main copy of the program at the same time. This often happens when businesses are on a local area network and download the software for all employees to use. This becomes a type of software piracy if the license doesn’t entitle you to use it multiple times.

Hard disk loading

Hard disk loading is a type of commercial software piracy in which someone buys a legal version of the software and then reproduces, copies or installs it onto computer hard disks. The person then sells the product. This often happens at PC resale shops and buyers aren’t always aware that the additional software they are buying is illegal.

Counterfeiting

Counterfeiting occurs when software programs are illegally duplicated and sold with the appearance of authenticity. Counterfeit software is usually sold at a discounted price in comparison to the legitimate software.

Online Piracy

Online piracy, also known as Internet piracy, is when illegal software is sold, shared or acquired by means of the Internet. This is usually done through a peer-to-peer (P2P) file-sharing system, which is usually found in the form of online auction sites and blogs.

What is the act of copying and using commercial software purchased by someone else?

The Dangers of Software Piracy

Software piracy may have a cheaper price point, but there are many dangers that software pirates should be aware of.

Consequences of software piracy are:

  • Increased chances that the software will malfunction or fail
  • Forfeited access to support for the program such as training, upgrades, customer support and bug fixes
  • No warranty and the software can’t be updated
  • Increased risk of infecting your PC with malware, viruses or adware
  • Slowed down PC
  • Legal repercussions due to copyright infringement

Keep your PC secure by only purchasing software from authorized dealers. Be aware of any software’s terms and conditions — make sure you agree and adhere to their guidelines. Protect your device from any further threats with Panda Security’s Free Antivirus for your Mac or Windows devices.

Sources:

Revulytics I TechTarget I Techopedia I It Still Works I Webopedia

Panda Security specializes in the development of endpoint security products and is part of the WatchGuard portfolio of IT security solutions. Initially focused on the development of antivirus software, the company has since expanded its line of business to advanced cyber-security services with technology for preventing cyber-crime.

What is known as right to use the software in the computer?

A software license is a document that provides legally binding guidelines for the use and distribution of software. Software licenses typically provide end users with the right to one or more copies of the software without violating copyrights.

What are the 5 computer ethics?

1) Thou shalt not use a computer to harm other people: 2) Thou shalt not interfere with other people's computer work: 3) Thou shalt not snoop around in other people's files: 4) Thou shalt not use a computer to steal: 5) Thou shalt not use a computer to bear false witness: 6) Thou shalt not use or copy software for ...

What is an example for commandment number 2 in computer ethics?

2) Thou shalt not interfere with other people's computer work: Computer viruses are small programs that disrupt other people's computer work by destroying their files, taking huge amounts of computer time or memory, or by simply displaying annoying messages.

What is the ethical use of computers?

Do not in any way examine or change files or passwords belonging to others. Do not violate the privacy of individuals or organizations. Respect the integrity of the computing systems. Do not develop or use programs that invade, damage, or alter computing systems or software.