software theft

legal The unauthorised duplication and/or use of computer

software. This usually means unauthorised copying, either

by individuals for use by themselves or their friends or, less

commonly, by companies who then sell the illegal copies to

users. Many kinds of software protection have been invented

to try to reduce software theft but, with sufficient effort it

is always possible to bypass or "crack" the protection, and

software protection is often annoying for legitimate users.

Software theft was estimated for 1994 to have cost $15 billion

in worldwide lost revenues to software publishers. It is a

serious offence under the Copyright, Designs and Patents Act

1988, which states that "The owner of the copyright has the

exclusive right to copy the work.".

It is estimated that European software houses alone lose $6

billion per year through the unlawful copying and distribution

of software, with much of this loss being through business

users rather than "basement hackers". One Italian pirating

operation employed over 100 staff and had a turnover of $10m.

It is illegal to: 1. Copy or distribute software or its

documentation without the permission or licence of the

copyright owner. 2. Run purchased software on two or more

computers simultaneously unless the licence specifically

allows it. 3. Knowingly or unknowingly allow, encourage or

pressure employees to make or use illegal copies sources

within the organisation. 4. Infringe laws against

unauthorised software copying because a superior, colleague or

friend compels or requests it. 5. Loan software in order that

a copy be made of it.

When software is upgraded it is generally the case that the

licence accompanying the new version revokes the old version.

This means that it is illegal to run both the old and new

versions as only the new version is licensed.

Both individuals and companies may be convicted of piracy

offences. Officers of a company are also liable to conviction

if the offences were carried out by the company with their

consent. On conviction, the guilty party can face

imprisonment for up to two years (five in USA), an unlimited

fine or both as well as being sued for copyright infringement

(with no limit) by the copyright owner.

Some people mistakenly think that, because it is so easy to

make illegal copies of software, that it is less wrong than,

say, stealing it from a shop. In fact, both actions deprive

software producers of the income they need to continue their

business and develop their products.

Software theft should be reported to the Federation AgainstSoftware Theft (FAST).

See also Business Software Alliance, software audit,

software law.

(2003-06-17)