Software piracy is the failure of a licensed user to adhere to the condi tions of a software license or the unauthorized use

or reproduction of copyright ed software by a person or entity that has not been licensed to use the software . Software piracy has become a household word and a household crime and has had a great affect on the software industry. It is a problem that can only be solve d by the choices of each individual. The computer software industry is one of the great business success stor ies of recent history, with healthy increases in both hardware and software sale s around the world. However, software piracy threatens the industry's economic future. According to estimates by the U.S. Software Publisher's Association, as much as $7.5 billion of American software may be illegally copied and distribut ed annually worldwide. These copies work as well as the originals and sell for s ignificantly less money. Piracy is relatively easy, and only the largest rings o f distributors are usually caught. In addition, software pirates know that they are unlikely to serve hard jail time when prisons are overcrowded with people co nvicted of more serious crimes. The software industry loses more than $15.2 bill ion annually worldwide due to software piracy. Software piracy costs the industry: $482 every second $28,900 every minute $1.7 million every hour $41.6 million every day $291.5 million every week To understand software piracy, one must get inside the mind of the pirat e. People, who wouldn't think of sneaking merchandise out of a store or robbing a house, regularly obtain copies of computer programs which they haven't paid f or. The pirate has a set of excuses for his actions: prices are too high; the co mpany doesn't provide decent support; he's only going to use the program once in a while. Although, what really makes software piracy seem less bad than other k inds of theft is that nothing is physically taken. There is no immediate effect on the inventory or productive capacity of the creator of a piece of software if someone 500 miles away copies a disk and starts using it. People tend to think of property as a material thing, and thus have a ha rd time regarding a computer program as property. However, property is not a con cept pertaining to matter alone. Ownership is a concept which comes out of the f act that people live by creating things of value for their own use or for trade with others. Creation does not mean making matter, but rather changing the form of matter alongwith an idea and a purpose. Most often, the actual cost of creat ing goods is determined in the production of individual items. With software, th e reverse is true. The cost of producing copies is negligible compared with the cost of constructing the form of the product. In both cases, though, the only way a producer can benefit from offering his product in trade, is for others to respect his right to it and to obtain it only on his terms. If people are going to make the production of software a ful ltime occupation, they should expect a return for their efforts. If they do not receive any benefit, they will have to switch to a different sort of activity if they want to keep working. The thief, though, will seldom be caught and punished; his particular ac t of copying isn't likely to push a software publisher over the edge. In most cases, people can openly talk about their acts of piracy without suffering criticism. However, there is a more basic deterrent to theft than the risk of getting caugh t. A person can fake what he is to others, but not to himself. He knows that he is depending on other people's ignorance or willingness to pretend they haven't noticed. He may not feel guilty because of this, but he will always feel helples s and out of control. If he attempts to rationalize his actions, he becomes depe

ndent on his own self-ignorance as well. Thieves who abandon honesty often fall back on the idea of being smart. They think it's stupid to buy something when they can just take it. They know t hat their own cleverness works only because of the stupidity of others who pay f or what they buy. The thieves are counting on the failure of the very people who se successful efforts they use. The best defense against software piracy lies neither in physical barrie rs to copying nor in stiffer penalties. The main prevention to theft in stores i s not the presence of guards and magnetic detectors, but the fact that most peop le have no desire to steal. The best way to stop piracy is to instill a similar frame of mind among software users. This means breaking down the web of excuses by which pirates justify their actions, and leaving them to recognize what they are. Ultimately, this is the most important defense against any violation of peo ple's rights; without an honest majority, no amount of effort by the police will be effective. In almost all countries of the world, there are statutes, criminal and c ivil, which provides for enforcement of copyrighted software programs. The crimi nal penalties range from fines to jail terms or both. Civil penalties may reach as high as $100,000 per infringement. In many countries, companies as well as individuals may face c ivil and criminal sanctions. There are several different types of software piracy. Networking is majo r cause to software piracy. Most licenses to software is written so that the pro gram can only be installed on one machine and can only be used on one machine at a time, however, with some network methods, the program can be loaded on severa l machines at once, therefore a violation of the agreement. On some network appl ications, the speed of transporting the software back and forth is too slow, and therefore, copying the program onto each machine would be so much faster, and t his could be a violation of the license agreement. End-user Copying is a form of piracy when individuals within organisatio ns copy software programs from co-workers, friends and relatives. This is the mo st prevalent form of software theft. Some refer to end user copying as 'disk swa pping'. Hard disk loading happens when unlicensed software is downloaded onto co mputers that you buy. Generally you, as the customer will have an original progr am on your hard drive that you may or may not have paid for. However, you will n ot receive the accompanying disks or documentation and you will therefore not be en titled to technical support or upgrades. This practice is often used as a sales feature or an added incentive by the dealer to entice the sale. Software rental is a form of piracy that takes place when an individual rents a computer with software loaded on it or the software itself from a rental shop or computer retailer. The licence agreement clearly states that the purcha ser is prohibited from engaging in the rental of the software. This often occurs in the form of a rental, and then a re-stocking charge when the software is ret urned to the retailer. Counterfeit software involves both low quality disks and high quality fa kes that are extremely close in appearance to the original software. Stealing via bulletin boards is one of the fastest growing means of soft ware theft. It involves downloading programs onto computers via a modem. OEM unbundling can occur at either the Original Equipment Manufacturer ( OEM) level or at the retailer. Unbundling involves the separating of OEM softwar e from the hardware that it is licensed to be sold with. The product is clearly marked 'For Distribution With New PC Hardware Only' and is designed so that it c annot be sold on the retail shelf. The customer can run into support issues as i t is the OEM that is required to provide support for this type of software. When you buy unbundled software you take a bigger risk of purchasing a counterfeit p roduct. In conclusion, software piracy has had a major impact on the software in dustry. Economically it has cost the industry billions of dollars each year and

there is no sign that this will change in the near future. No amount of penalt ies or policing will stop the trend of software piracy. Each individual must de velop their own moral standards so that they do not add to the problem.