Software piracy has long been the major illegal activity behind the scenes in the computer industry, and nevertheless is an issue that affects us very much in the personal and social levels. At the same time, it is an issue that is difficult to grasp and rectify, and it isn’t difficult to see why. The “conservative” estimates by the Business software Association and Software Industry Information Association, has established a figure of $12.2 billion as the revenue loss amongst the software companies world-wide. Clearly, this is an issue to be seriously considered and remedied.

Criterion B: IT Background on the Issue

Software piracy is tentatively defined as “the unlawful copying and distribution of software products). Software piracy is a unique form of counterfeiting. As opposed to the counterfeiting books or records in the “old days”, counterfeited software do not degrade in quality from one generation to another. Since there is no real difference

As the internet became readily available and as faster internet connections started to come into existence (such as ADSL or ISDN), internet provided a fast and efficient way to distribute pirated software. IRC Channels, newsgroups and mailing lists now allow a wide variety of users across the world to exchange and transfer pirated software freely without much restriction. Since clients usually live in different countries, announcements are made on IRC or Newsgroups. Clients contact the seller through email. Software selections are made through the list supplied by the seller. For example, such announcements are easily found on IRC Channels:

Software piracy has also been found to be linked to organized crimes. According to Tarry Anslow, the Chief Investigator of ELSPA, “It is directly connected with organized crime in United Kingdom especially. Criminals have been quick t realize the connection with counterfeit products and huge financial rewards. We have evidence that major drug importations, child pornography and paramilitary organizations…are being funded by this illegal activity. Last year the ELSPA conducted almost 1,000 raids and in 80% discovered evidence of other criminal matters being involved.”

The most important social impact of software piracy, however, is the loss of respect and value for Intellectual Property. The lack of perception of software value and more importantly, the value of works of the mind, is a concern in our society. Software is not bought. What is bought is a license to use. This is especially a concern for the current generation, for they fear that the younger generation might grow up no realizing the value of Intellectual Property. Such world, where intellectual properties are devalued and even dismissed as valueless, is a scary thought.

Software piracy has a wide range of social impact on the society itself. The most common excuse for people to condone software piracy is an argument such as, “Well, it doesn’t hurt anyone. And Mr. Bill Gates and his Gatescorp are making enough dollars off of us average consumers anyways.” However, the figures tell different stories. According to the figure of SIIA in the year 1999 for example, in the gaming industry alone, 109,000 jobs, $4.5 billion of wages and $1 billion of taxes were lost. Even if we contest that these numbers might have been inflated, cutting these numbers in half is still mind-boggling, in the gaming industry alone.

Although there are numerous solutions that may be proposed in order to affectively deal with this issue, there are two essential changes that must take place in order to stop software piracy.

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