Licensed software and

pirated software

Prepared by - tanisha modi, dishank

pramal and soumy tiwari
 OUTLINES
 Software piracy
 Software licensing
 Classification of software licenses
 Benefits of using licensed software
 Impact of proprietary license on a user
 Why software piracy
 Effects of piracy software on users
 Effect of piracy software on business
 How to prevent piracy
 Punishment
 Organization for protecting piracy
 References
Software piracy
Software piracy is the illegally using, copying
and reselling of software without the consent of
the software creator.
Unauthorized copying may be done for personal
use or business use.
Software licensing
A software license is a document that provides
legally binding guidelines for the use and
distribution of software.
Software licenses typically provide end users with
the right to one or more copies of the software
without violating copyrights
 Benefits of using licensed software
By using licensed software, you are able to contribute
to the further development of the program you
are using. It also helps the economy generate not
just computer related jobs, but opportunities for
other people/business who’s work is much
dependent on “written” technology.
 Impact of proprietary license on a user
The EULA (End User License Agreement ) may itself be quite
complex and long. It is important for one to understand the
scope of the use which is permitted through the license- any
use should be permitted by the license . Reverse
engineering is nearly always prohibited
Violating any of the condition result in copyright violation
Why software piracy
 Insufficient Buying Power- Some people or businesses or
government agencies do not purchase software legally
because they cannot afford it
 Expanded Global Internet Access- Nowadays, there are
more and more people can access the Internet around the
world. On the other word means they can more easily find
pirated software to purchase or download through internet.
 Availability- This is a major rationale why many people
head to torrent websites with an intention to pirate
software or other things
Effects of piracy software on users
 Security Risks- Pirated software can carry viruses and other types of
malware that infect computers. According to the Harrison Group, 24 percent
of pirated copies of Windows were either infected or they automatically
downloaded malware as soon as they connected to the Internet. Even if a
piece of pirated software isn't infected itself, it can pose a security risk
through a lack of updates: Some copies of pirated software can't update
properly, leading users to continue using old versions with security holes.
 Productivity Risks- Aside from security holes, using outdated pirated
software can cause users to encounter bugs and glitches, leading to lost work,
lost time and frustration. The hacks used to run pirated software can also
interfere with software operation, such as preventing a program from
accessing online features in order to avoid detection. In addition to problems
with the software itself, pirated programs lack a warranty and access to
customer support, making it more difficult to get help when problems occur
 Legal Risks- Using pirated software carries high penalties under copyright law
for users caught in the act. In the United States, copyright infringement can lead to
up to five years in jail and a $250,000 fine. The owner of the software's copyright
can also sue for damages, which can run as high as $150,000 per copy. Although
the idea of software piracy might evoke an image of an a home computer user,
piracy often occurs in businesses, putting entire companies at legal risk. Even the
U.S. Army was caught in 2013 for using over $180 million in pirated software,
costing it a $50 million settlement. If you know a company is using pirated
software, you can report the crime anonymously to an industry association, such as
BSA or The Software & Information Industry Association
Effect on business
 Distribution Methods- Pirated material is distributed
in two ways. Unknowing consumers buy pirated items.
Others buy pirated items knowing they are pirated.
According to the Business Software Alliance, software
theft costs Industry $51 billion in 2009.
 Revenue Diversion- Piracy diverts money away
from producers and distributors of items such as
audio recordings, making those companies who make
an investment in production and distribution less
profitable.
 Tax Revenues- Except in the case where pirated
items are sold through retail channels and taxed,
tax revenue is not generated from pirated items.
For example, when music is downloaded with no
tax charged when it is supposed to be, as
dictated by tax laws, that revenue is lost as well.
Lost tax revenue reduces funds available by the
taxing government to spend.
Economic Impact

Source: Business
Software Alliance and
IDC 2004, First annual
BSA and IDC global
software piracy study.
 How to prevent piracy
1. Read the End User License Agreement (EULA) for each
software product you purchase. The EULA's terms and
conditions define how you can legally use the software,
how many computers you can install the software on.
2. Purchase CD software only from reputable resellers.
Check the manufacturer's website to see what kind of
authentication markings they include to guarantee that the
software is genuine. Microsoft affixes a "Certificate of
Authority" label to the outside packaging of their
products, and Adobe includes silk-screened artwork along
with trademarks, patent information and part numbers on
their CDs.
1. Purchase software downloads directly from the
manufacturer's website. Never download software from a
peer-to-peer file-sharing site such as Limewire, Kazaa or
BearShare, and do not make your software available on
these sites.
2. Register your software to prevent others from attempting
to install your software on their computers. Software
companies call this "soft lifting" and it is a major source of
software piracy.
3. Report piracy if you discover that software you purchased
is not authentic or if you suspect that an online reseller or
retail establishment is selling counterfeit software. This is the
biggest single action anyone can take to stop software
piracy.
Punishment for piracy
In India, the copyright of computer software is protected under
the Indian Copyright Act of 1957.
Under the Indian Copyright Act, a software pirate can be
tried under both civil and criminal law. The minimum jail term
for software copyright infringement is seven days, and the
maximum jail term is three years. Statutory fines range from
a minimum of 50,000 to a maximum of 200,000 rupees.
 Organization for protecting piracy
 BSA (business software alliance) – established in
1998 and representing a number of world’s largest
software makers.
 Its principal activity is trying to stop
copyright infringement of software
produced by its member.
 FAST (Federation Against Software Theft) - it was
set up in 1984 by the British computer society’s
copyright committee, and was the first software
copyright organization in U.K.
 Its first action was to raise the awareness of software
piracy.
 SIIA (Software & Information Industry Association) –
it offers global services in business development,
government relations, corporate education and
intellectual property protection to companies
 It also advocates a legal and regulatory environment
that benefits the entire industry
References
 https://searchcio.techtarget.com/definition/software-license
 https://whatis.techtarget.com/definition/piracy
 https://dotherights.wordpress.com/what-is-software-
piracy/why-software-piracy-happen/
 https://fossbytes.com/10-reasons-why-people-do-piracy-
and-download-movies-shows-albums-software/
 https://www.techwalla.com/articles/the-effects-of-software-
piracy/
 https://www.techwalla.com/articles/how-to-stop-software-
piracy/
 www.ehow.com
ashutcool069@gmail.com