Software Piracy and Their Sanctions

Software Piracy and Their Sanctions

Software piracy is a term that is frequently used to describe the copying or use of computer software in violation of its license (commonly referred to as an end user licensing agreement or EULA). Interestingly, not only the concept, but also the term itself, is highly controversial.1
The copying and selling of software in violation of its EULA is extremely common in many parts of the world, particularly in the so-called developing economies, such as China, Southeast Asia, Eastern Europe and Latin America. In fact, in such regions typically the vast majority of computers contain unofficial copies of commercial software. Moreover, this practice is far from unusual even in the higher income, industrialized countries.
Inability to Stop
Software developers have tried various techniques to eliminate so-called software piracy because of the loss in their revenue that can result from it. These techniques have included publicity about the harm that it supposedly causes, electronic copy protection, surprise audits of businesses, requiring users to contact the vendor to obtain an installation code, legal action, and the selling of less expensive versions with reduced functionality.
However, such measures have generally met with little success, as determined users soon discover ways to avoid or defeat them. Moreover, some of them have actually alienated users by making software more difficult to install or use, notably the tedious task of typing in long registration codes and the annoyance of having to call the vendor after installation or reinstallation to obtain an authorization code.
The main success of these techniques has been in the higher income, industrialized countries, particularly within large businesses and other organizations. This is largely because of the stronger enforcement of copyright laws in such countries and the fear of surprise audits and heavy fines by the Business Software Alliance (BSA)2, as permitted by the EULAs. The BSA is a not-uncontroversial, international organization that was set up by the largest software vendors to enforce compliance with their EULAs.

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