software theft

software theft

(legal)The unauthorised duplication and/or use of computersoftware. This usually means unauthorised copying, eitherby individuals for use by themselves or their friends or, lesscommonly, by companies who then sell the illegal copies tousers. Many kinds of software protection have been inventedto try to reduce software theft but, with sufficient effort itis always possible to bypass or "crack" the protection, andsoftware protection is often annoying for legitimate users.

Software theft was estimated for 1994 to have cost $15 billionin worldwide lost revenues to software publishers. It is aserious offence under the Copyright, Designs and Patents Act1988, which states that "The owner of the copyright has theexclusive right to copy the work.".

It is estimated that European software houses alone lose $6billion per year through the unlawful copying and distributionof software, with much of this loss being through businessusers rather than "basement hackers". One Italian piratingoperation employed over 100 staff and had a turnover of $10m.

It is illegal to: 1. Copy or distribute software or itsdocumentation without the permission or licence of thecopyright owner. 2. Run purchased software on two or morecomputers simultaneously unless the licence specificallyallows it. 3. Knowingly or unknowingly allow, encourage orpressure employees to make or use illegal copies sourceswithin the organisation. 4. Infringe laws againstunauthorised software copying because a superior, colleague orfriend compels or requests it. 5. Loan software in order thata copy be made of it.

When software is upgraded it is generally the case that thelicence accompanying the new version revokes the old version.This means that it is illegal to run both the old and newversions as only the new version is licensed.

Both individuals and companies may be convicted of piracyoffences. Officers of a company are also liable to convictionif the offences were carried out by the company with theirconsent. On conviction, the guilty party can faceimprisonment for up to two years (five in USA), an unlimitedfine 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 tomake illegal copies of software, that it is less wrong than,say, stealing it from a shop. In fact, both actions deprivesoftware producers of the income they need to continue theirbusiness 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.