Types of Piracy

There are five common types of software piracy. Understanding each will help users avoid problems associated with illegal software.

End User Piracy

This occurs when a company employee reproduces copies of software without authorization. End user piracy can take the following forms:

• Using one licensed copy to install a program on multiple computers;
• Copying disks for installation and distribution;
• Taking advantage of upgrade offers without having a legal copy of the version to be upgraded;
• Acquiring academic or other restricted or non-retail software without a license for commercial use;
• Swapping disks in or outside the workplace.

Client-Server Overuse

This type of piracy occurs when too many employees on a network are using a central copy of a program at the same time. If you have a local-area network and install programs on the server for several people to use, you have to be sure your license entitles you to do so. If you have more users than allowed by the license, that’s “overuse”.

Internet Piracy

This occurs when software is downloaded from the Internet The same purchasing rules should apply to online software purchase as for those bought in traditional ways. Internet piracy can take the following forms:

• Pirate websites that make software available for free download or in exchange for uploaded programs;
• Internet auction sites that offer counterfeit, out-of-channel, infringing copyright software;
• Peer-to-Peer networks that enable unauthorized transfer of copyrighted programs.

Hard-Disk Loading

This occurs when a business who sells new computers loads illegal copies of software onto the hard disks to make the purchase of the machines more attractive. The same concerns and issues apply to Value Added Resellers (VAR) that sell or install new software onto computers in the workplace.

Software Counterfeiting

This type of piracy is the illegal duplication and sale of copyrighted material with the intent of directly imitating the copyrighted product. In the case of packaged software, it is common to find counterfeit copies of the CDs or diskettes incorporating the software programs, as well as related packaging, manuals, license agreements, labels, registration cards and security features.

Download BSA’s Software Management Guide, available in English and Spanish, to learn more about software piracy and how to protect yourself and your business.