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Pirated Software - Essay Example

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The rapid technological development across continents gives rise to new problems and issues which were not previously encountered. As the use of computer necessitates the installation of costly software, some people resort to using counterfeit software in order to save money…
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Running Head: PIRATED SOFTWARE Pirated Software in APA Format by The rapid technological developmentacross continents gives rise to new problems and issues which were not previously encountered. As the use of computer necessitates the installation of costly software, some people resort to using counterfeit software in order to save money. Software piracy is now a major issue in this technologically advanced world because of the extensive usage of pirated software especially in developing countries where illegal practices are not closely monitored and users have low purchasing power making them incapable of buying software. In fact, it is estimated that 36% of all the software currently used is stolen (Journal of Business 2004). Instead of benefiting consumers, pirated software adds to consumer burden because the profit loss from the sales of this software is being passed on also to them by manufacturers in terms of higher prices (Piracy 2007).
Software piracy is defined by Microsoft as the "mislicensing, unauthorized reproduction and illegal distribution of software, whether for personal or business use" (Protect yourself from piracy 2007). It should be noted that once an individual purchase a software from the copyright holder, the package include an end user license agreement (EULA) which provides the software a protection against copyright infringement. It is understood that once a consumer open the software and install it in his/her computer, he will adhere to the EULA.
In the common knowledge, pirated software is often understood as counterfeit software which is bought from an illegal seller which reproduced it. This practice is very common in Mexico and China where software is reproduced and packaged in CD cases featuring the original design from the copyright holder. In countries where copyright infringement is often overlooked, pirated software are sold openly in markets. However, pirated software goes beyond purchasing from an illegal seller who reproduced it for a profit. Other types of software piracy include softlifting, client-server overuse, hard-disk loading, and online piracy.
Softlifting is the term used to denote the borrowing and installation of a software application from a colleague (Piracy 2007). In this case, the software is pirated because the copyright holder is not paid for the use of the license by another user aside from the intended end-user. This often occurs between friends who borrow software from one another and install in their computers.
Client-server overuse as the term implies is using and installing the software to more than the number it is licensed for (Piracy 2007). It often occurs in business organizations who are allowed to install the software for a certain number of computers.
Hard-disk loading is described as the installation and selling of counterfeit software on new computers or refurbished one (Piracy 2007). This crime is often committed by store owners who sell computers with readily installed software. In order to economize, they often sell and install counterfeit licenses together with the hardware.
Online piracy has become one of the debated forms of software piracy in this global village. It should be noted that the internet technology has allowed the sharing of files together with various software online without the permission from the original copyright holder. Typically, online piracy includes peer-to-peer network, internet auction, and even blog (Piracy 2007).
Journal of Business (2004), "Software Piracy: Market penetration in the Presence of Network Externalities" Volume 77, No. 2
Protect yourself from piracy (2007) Retrieved 19 January 2008, from
Piracy (2007) Retrieved 19 January 2008, from,,sid9_gci213592,00.html Read More
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