Software Piracy - Types

Software Piracy - Types

Software piracy is the unauthorized copying, reproduction, use, or manufacture of software products. On average, for every authorized copy of computer software in use, at least one unauthorized or "pirated" copy is made. In some countries, up to 99 unauthorized copies are made for every authorized copy in use.

Software piracy harms everyone in the software community including you, the end user. How?

·         Piracy results in higher prices for duly licensed users,

·         Piracy reduces levels of support, and

·         delays in the funding and development of new products, causing the overall selection and quality of software to suffer.

Piracy harms all software publishers, regardless of their size. Software publishers spend years developing software for the public to use. A portion of every dollar spent in purchasing original software is channeled back into research and development so that better, more advanced software products can be produced. When you purchase pirated software, your money goes directly into the pockets of software pirates instead.

Software piracy also harms the local and national economies. Fewer legitimate software sales result in lost tax revenue and decreased employment. Software piracy greatly hinders the development of local software communities. If software publishers cannot sell their products in the legitimate market, they have no incentive to continue developing programs. Many software publishers simply won’t enter markets where the piracy rates are too high, because they will not be able to recover their development costs.

There are five basic forms of software piracy, and all are damaging both to the software publisher and to you, the end user. The five basic types of piracy are:

• Soft lifting. This form of piracy occurs when extra copies of a program are made within an organization for employees to use. It also includes "Disk swapping" among friends and associates.
•  Hard-Disk Loading. Some computer dealers load unauthorized copies of software onto the hard disks of the computers they offer for sale, as an incentive for an end user to purchase a computer from that particular dealer.

• Counterfeiting. This is the illegal duplication and sale of copyrighted software, often in a form designed to make the product appear legitimate. Software counterfeiting can be very sophisticated, including significant efforts to replicate packaging, logos, and anti-counterfeiting techniques such as holograms. It can also be unsophisticated, consisting of inferior or hand-written labels, with disks folded into a plastic bag and sold on street corners. A recent trend in counterfeiting is the emergence of compilation CD-ROMs, where numerous unauthorized software publisher’s programs appear on one CD-ROM. In any form, software counterfeiting is very damaging to both the software developer and legitimate end users.
• Online. This form of piracy occurs when copyrighted software is downloaded to users connected through a modem to an electronic bulletin board or the Internet without the express permission of the copyright owner. This should not be confused with sharing public domain software or providing “shareware.” Shareware is software that may or may not be copyrighted but is generally offered for little or no charge by the author for nearly unrestricted use, including copying or sharing with others. Microsoft distributes promotional products, free software, updates, or enhancements over bulletin boards or online services, which may or may not be licensed for use solely with licensed Microsoft products. You should check the EULA accompanying the product to determine how it can be used.
• License Misuse. This form of piracy occurs when copyrighted software is distributed outside the restricted legitimate channels it was designed for or the product is used in ways not allowed in the license agreement. Examples of license misuse include:

(1) Academic product misuse This form of license misuse occurs when a product that is manufactured, licensed, and specifically marked for distribution to educational institutions and students at reduced prices is diverted into normal commercial channels of distribution. Typically this product will contain a sticker indicating that it is academic product and for use only by educational institutions.

(2) Not for Resale (NFR) product misuse. Again, this form of license misuse occurs when a product that has been clearly marked "Not for Resale," and is typically distributed as a promotional or sample product and is not licensed for normal commercial distribution and use, is diverted into normal commercial channels of distribution.

(3) Original equipment manufacturer (OEM) stand-alone product. This form of license misuse occurs when OEM version software has been unbundled from its designated computer system and distributed as a separate, “stand-alone” product. Microsoft’s agreement with computer manufacturers prohibits them from distributing Microsoft products in this fashion, i.e. without accompanying computer hardware.

Microsoft products on the retail shelf should never include a line on the front cover of the User’s Guide that states, “For Distribution Only with New Computer Hardware.”

(4) “Microsoft Easy Fulfillment” (MEF) product misuse. This form of license misuse occurs when a “Microsoft Easy Fulfillment” (MEF) product is diverted into normal commercial channels of distribution. The MEF product may be distributed only to end users who have a Select or Open (MOLP) license and who order the product in accordance with their license terms. The MEF product has a sticker on the jewel case identifying the product as “Microsoft Easy Fulfillment.”

(5) Volume Licensing misuse. Volume Licensing enables organizations to acquire the rights to copy and use specific Microsoft software products with agreements tailored to the number of products needed at the particular organization. These volume programs offer a broad range of products and licensing options and reduce administrative overhead and software management costs. Microsoft offers two types of volume license:

a.   Select provides savings for medium and large organizations with significant volume requirements through forecasting software needs over a two-year period.

b.   Openprovides savings for small and medium organizations for licenses of as few as 20 units of a particular software product, with a simple ordering process.

Misuse under volume licensing occurs when an organization copies software purchased through the volume program on more computers than specified in their license agreement. Other violations occur when an organization allows concurrent use of software products (which currently is offered only as an option under the Select and Open programs) without the purchase of the option that allows for this concurrent use. User licenses show users rights to use pieces of software. The user license always shows the Product ID number for all authorized software and it must be entered at installation of the software.