software theft

The copyright infringement of software refers to several practices when done without the permission of the copyright holder:Creating a copy and/or selling it. This is the act that some people refer to as "software piracy". This is copyright infringement in most countries and is unlikely to be fair use or fair dealing if the work remains commercially available. In some countries the laws may allow the selling of a version modified for use by blind people, students (for non-educational product) or similar. Differences in legislation may also make the copyright void in some jurisdictions, but not the others.Creating a copy and giving it to someone else. This constitutes copyright infringement in most jurisdictions. It is not infringing under specific circumstances such as fair use and fair dealing.Creating a copy to serve as a backup. This is seen as a fundamental right of the software-buyer in some countries, e.g., Germany, Spain, Brazil and Philippines. It can be infringement, depending on the laws and the case law interpretations of those laws, currently undergoing changes in many countries. In the US, legal action was taken against companies which made backup copies while repairing computers (see MAI Systems Corp. v. Peak Computer, Inc. (1993)) and as a result, US law was changed so that making temporary backup copies of software while repairing computers is not copyright infringement.Renting the original software. Software licenses often try to restrict the usual right of a purchaser of a copyrighted work to let others borrow the work. In some jurisdictions the validity of such restrictions are disputed, but some require permission from the copyright holder to allow renting the software.Reselling the original software. Licenses often say that the buyer does not buy the software but instead pays for the right to use the software. In the US, the first-sale doctrine, Softman v. Adobe [1] and Novell, Inc. v. CPU Distrib., Inc. ruled that software sales are purchases, not licenses, and resale, including unbundling, is lawful regardless of a contractual prohibition. The reasoning in Softman v. Adobe suggests that resale of student licensed versions, provided they are accurately described as such, is also not infringing.Bulletin Board Sharing/Internet Piracy- Albacea et al (2005) states that this infringement occurs when System Operators share (by electronic transfer) copyrighted materials on bulletin boards or the internet for users to download.
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<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 Against Software Theft (FAST).
See also Business Software Alliance, software audit, software law.
(2003-06-17)