Global Software Piracy

Presented by Group A7:

2. Nikhil Sheth
3. Ganesh Kumar
4. Mradul Khandelwal
5. Pranav Kumar Tripathi
6. Amit Lapasia
 Software Piracy : Introduction
• Software Piracy is the unauthorized copying or
distribution of copyrighted software

• Can be done by copying, downloading, sharing,

selling, or installing multiple copies onto
personal or work computers

• Purchasing software = a license to use it, not the

actual software

• Making more copies of the software than the

license permits = Piracy
 What’s the case all about…
• Golden Shopping Arcade – Honk Kong
Original Pirated

OR

Pirated Original
$300 $800
 What’s the case all about…
• Golden Shopping Arcade – Honk Kong
• Software Piracy
• US Copyright Act
• Companies taking Anti Piracy measures
Microsoft has an anti-piracy team called
Keep It Real (CRN, 20 February 2006),
which travels around the UK educating
businesses in software piracy.

Watch this print ad…

Malaysia
India
 What’s the case all about…
• Golden Shopping Arcade – Honk Kong
• Software Piracy
• US Copyright Act
• Companies taking Anti Piracy measures
• International Bodies – BSA, SIIA, IACC, WTO
• China amending its patent law in 2000
• Data 1994 49% 2000 37%
• Finally, it ends on a negative note
Lets have a look at this video footage…
 Piracy Rates
• MP3 Rs. 30
• Windows Rs. 90
• Games Rs. 70
• VCD/DVD Rs. 50 – 100

• Resident Evil then, not yet

released

Finally, we also contributed to Piracy by buying

MP3 for Rs. 25
 Types of Software Piracy
 End User Piracy
Company employee reproduces copies of
software without authorization.

 Client-Server Overuse:
Too many employees on a network are using a
central copy of a program at the same time.

 Internet Piracy:
Software is downloaded from the Internet.
1. Hard-Disk Loading:
A business sells new computers by loading illegal
copies of software onto the hard disks to make
the purchase of the machines more attractive.

2. Software Counterfeiting:
The illegal duplication and sale of copyrighted
material with the intent of directly imitating the
copyrighted product.
Forms of software piracy
Auction Site Piracy
Forms of software piracy
FTP Sites
Forms of software piracy
Warez Sites
Forms of software piracy
P2P Sites
Forms of software piracy
Cracks, patches & key-gen sites
 Case Terminology
 Site Licenses
Name originally derived from the practice of
restricting the use of a particular piece of
software by physical site rather than by the
number of copies in use.

 Shrink Wrap Licenses

Mechanism whereby the purchaser agrees to the
terms of the license without actually signing on
the dotted line.
 Case Terminology
 Dongles

Small hardware devices that connect to

computers to authenticate a piece of software.

 Encryption
Refers to algorithmic schemes that encode plain
text into non-readable form or cyphertext,
providing privacy.
 Case Terminology
 The Digital Millennium Copyright Act
Designed to implement the treaties signed in Dec. 1996 at
the WIPO, Geneva conference.

Circumvention of anti-piracy measures built into most

commercial software.

Outlaws the manufacture, sale, or distribution of code-

cracking devices used to illegally copy software.

Limits liability of nonprofit institutions of higher education

-- when they serve as online service providers and under
certain circumstances, for copyright infringement by
faculty members or graduate students.
International Bodies
 Indian software piracy & the
law
→ Full-fledged copyright law in the form of the
Copyright Act of 1957.

→ Software is treated as a ‘Literary Work’.

→ 1999 amendment rights

1. Sell/offer to sell; or
2. Give/offer on commercial rental any copy of
software.

→ 1994 amendment  induction of Section 63B

= stringent punishment for knowingly violating
software copyrights.
 Indian software piracy & the
law
→ 1984 amendment  induction of Section 64
= extraordinary powers to officers investigating
copyright offences.
– Penalties
– Knowing software violation by copying (63B)
= Minimum mandatory sentence of 7 days’
imprisonment, extendable upto 3 years
+ fines ranging from a minimum of Rs. 50,000 to a
maximum of Rs. 200,000.

– All rights applicable w.r.t copyright infringement.

 Growing tentacles of global piracy:
1 in every 3 software
programs sold world
wide is pirated - IDC

For every $2 spent on

legitimate software, $1
goes to pirates. – IDC

Funds global drug

syndicates + organized
crime & terror

‘Matt Damon in the Bourne Ultimatum, a pirated movie showing

on Google Video. This page showing the film notes it has been
viewed 2,00,000 times. Projected losses : $ 1.5 billion’ - Motion
 Growing tentacles of Indian piracy:
‘Indian Pak ‘1st Indian state to start an
software organized IPR court : Karnataka’
piracy rate terror
= 72 %’ - funded by Ravi Venkatesan, MD-
NASSCOM piracy Microsoft India

‘Bollywood piracy market 1st state to have a specific

> Rs. 1000 cr. with losses piracy law : Tamil Nadu
of Rs. 1500 cr.’ – TOI Sanjay Mohite, DCP
report 14/10/07 (Enforcement), Mumbai
3 % drop in Indian piracy = 1,15,000 jobs, $5.9 billion
to India’s GDP, $386 million in taxes & $8.2 billion in
revenues to local vendors.”
Updates…
Piracy rates by region
Dollar Losses by region
9th Position
2006 – Worldwide Software Piracy Figures

• Total Software installed on computers: more

than $100 billion

• Total Software paid for: $64 billion

• Global Piracy rate: 35%

• Total losses up 15% from last year

• China piracy rate drop by 4%, 10% in last 3

years
2006 – Worldwide Software Piracy Figures

• Acc. to survey conducted by BSA, half of the

102 countries studied, the piracy rate exceeded
60%. In less than 1/3 of the countries, the
piracy rate exceeded 75%.

• Emerging markets in Asia Pacific, Latin America,

Eastern Europe, and the Middle East/Africa
account for 1/3 of PC shipments today, but only
10% of spending on PC software.

• In next 3-4 years consumer will spend $300

billions on PC s/w and $200 billions s/w will be
pirated
 BSA Predictions

• 10% decrease in piracy rate over 4 years

will add:
 2.4 Millions Job
 $ 70 Billions Tax revenue
 $ 400 Billions GDP world wide
 Priority watch list by IIPA
• Argentina • IIPA recommends
• Brazil that 15 countries
• Bulgaria be placed on the
• Chile top Priority Watch
• Colombia
•
List
The Dominican Republic
• Egypt
• India
• Indonesia
• Kuwait
• Lebanon
• China
• Philippines
• South Korea
• Thailand.
 Consequences of Piracy

• Local software industry crippled by Compt.

• Competition with pirated s/w from aboard
• Loss in tax revenue
• Loss of Job
• Lack of legitimate market
• Decreased business productivity from
using unsupported s/w
 Steps to reduce Piracy
1. Increase Public Education and Awareness

3. Implement the WIPO Copyright Treaty

5. Create Strong and Workable Enforcement

Mechanisms as required by TRIPS

7. Step Up Enforcement with Dedicated Resources

9. Lead by Example
Commitment of BSA & NASSCOM
• Software Asset Management Seminars in
Bangalore, Chennai, Delhi and Mumbai

• Piracy Raids in Bangalore, Delhi etc

• Rewards Campaign

• Direct Mailer Campaign to educate users on the

advantages of using legal software

• Training of police, judiciary and corporates

Commitment of BSA & NASSCOM
• Organizing seminars in conjunction with trade
associations, newsletters, print advertisements
in local dailies and radio ‘infomercials’

• Focus on the youth segment, specifically

students

• 1800 11 0033 (toll free) for reporting

• Concern parties can report corporate end-user

Piracy via the BSA website at
www.bsa.org/india
 Q&A
• In this Piracy inhabited market, are the
companies also getting benefited or
involved?

• Open Source – an unrivalled solution or

a potent trigger to Piracy?
• Free Redistribution
• Source Code
• No Discrimination Against Persons or Groups
• No Discrimination Against Fields of Endeavor
• Distribution of License
• License Must Not Restrict Other Software
• License Must Not Be Specific to a Product
Lets have a look at this video by Microsoft…
Say NO to Piracy

Issued in Public Interest

Thank You