Intellectual Property

Software Piracy

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 1990 - Software Rental Amendments

Act - must have permission of owner of copyright

Software Publisher

An owner of a software copyright

History of Copyright Law

1790 - first US copyright law to cover: books maps charts

Updated to include movies sound recordings photography

History continued

1909 - Copyright Actunauthorized copy had to be in a form

that could be seen and read visually 1960 - Software and Databases

can’t be visually seen or read (music) 1976, 1980 - law revised to cover

software - exhibit authorship

History continued...

1982 - High volume copying of records and movies became a felony

1992 - 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 - $2500 - 5 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 homeextra 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 purposescriticism, 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 e-mail 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