Intellectual Property Software Piracy

Copying of software in large quantities for resale Illegal copying by businesses and individuals for their own use

Why Pirate Software? It’s easy Good quality Fast and convenient Everyone else is doing it

What is Permissible? Copy to hard drive One backup License specified copies Copy on second machine - but cannot use both machines at the same time

Piracy - Who does it hurt? Businesses lose $$$ Impedes development of new software Development uses lots of people they only get reimbursed if it is sold Users no documentation no updates no customer support

Businesses and Piracy Some businesses produce and sell unauthorized copies of popular packages Businesses buy few - install many Download illegal software from Internet

Mass Reproduction Mainly in Foreign countries Intellectual property not recognized Small computer industry Few legitimate dealers Poorer population

In-House Copying Reproduce on large number of machines Share on networks Keep down costs - rarely caught Difficult to comply with requirements Licensing agreements are unclear and confusing

Individuals Share copies with friends Make copies at work for home use Post illegal copies on the Internet

Rentals Illegal Leads to piracy Software Rental Amendments Act - must have permission of owner of copyright

Software Publisher An owner of a software copyright

History of Copyright Law first US copyright law to cover: books maps charts Updated to include movies sound recordings photography

History continued Copyright Act unauthorized copy had to be in a form that could be seen and read visually Software and Databases can’t be visually seen or read (music) 1976, law revised to cover software - exhibit authorship

History continued High volume copying of records and movies became a felony making multiple copies of copyrighted work willfully and for purposes of commercial advantage or private gain is a felony

Liabilities Damages plus any profits up to $100,000 for each “work” 10+ copies - $ years in jail -10 copies - <1 year in jail fines as high as $250,000 Companies fined if 10+ employees have illegal copies on computers

Educational Facilities More moral obligation to abide by laws Discounts Site license agreements

Businesses “Shoplifting” - take home extra use for office One software package per customer Lots of copies OK if limited use at one time

Fair Use Test Purpose and character of use Nature of copyrighted work Relative amount to the whole Effect on the market

Purpose and Character of Use Commercial nature or non-profit educational purposes Preamble purposes criticism, comment, news reporting, teaching, scholarship, research Degree of transformation

Nature of the Copyrighted Work Some works are more deserving of protection than others

Relative Amount Quantity Quality and importance “no more was taken than was necessary” to achieve purpose for which the copying was done

Effect on Market Harm to the original Harm to derivative works

Importance of Fair Use Helps figure out under what circumstances we can legally copy s/w Software developers often must copy some or all of another company’s program as a part of the development process

Freebies for Friends Illegal Hard to catch Saves money Everyone does it Not a large market

Prevention Technical devices to prevent or deter copying enforcement and revision of law education for protection education of social costs marketing and contractual changes to reduce incentive

Technical Solutions Copy protection on disks Serial numbers Secret to publishers

Enforcement and Education Software Publishers Association responds to tips - sends warning letters Conducts voluntary audits Surprise raids with court orders Monitor of Internet - inform FBI

Markets and Management Prices reflect usage Metering academic discounts Management policies Free demos

Abandon software copyright More people benefit from programs Users can improve programs Create better programs Will work for free ‘cause luv it

Copyright in Cyberspace High volume inexpensive storage media scanners easy to copy and distribute

Bulletin Board Systems (BBS) Freeware and Shareware Illegal copies Upload and Download No charge No financial gain

Literacy & Artistic Material Photos, Modified pictures Digital music Digital libraries

BBS owner responsibilities Police their sites Contracts Legally responsible for sites?

Proposed Legislation No free browsing Extend owners’ control to all digital copies Include all digital transmissions Make on-line providers responsible

Technology Bans If it makes copying easy - ban it Government controls on technology that can be used for illegal purposes - sound familiar?

Software Developers Reverse Engineering Copy and decompile Ruled Fair Use in Courts