ASSIGNMENT NO 02

Subject: Introduction to Computer

Topic: Software Piracy

Submitted To: Sir Amjad Choudhary

Submitted By: Name Roll No

Alia Javed 03

Class: MBA 1st

Session: 2019-23

Dated: 13-09-2020

Department of Business
Faculty of Management Sciences
University of Kotli Azad Jammu & Kashmir
 ACKNOWLEDGEMENT

Being Muslim no acknowledgement goes without phrasing Allah Almighty and His Prophet

Muhammad (SAW). First and foremost, I would like to thank all the time sympathetic and

incomparable, The Allah Almighty who empowered me to complete this work. Second, I am

indebted to Prophet Muhammad (SAW) who is everlasting source of knowledge and guidance

for all mankind. I owe my deepest gratitude to my Sir Amjad Choudhary who is the source of

motivation for me. Thank you for your keen interest and encouragement.
Contents
ACKNOWLEDGEMENT .............................................................................................................. 2

1 Introduction .................................................................................................................................. 4

1.1 Brief Description about Software Piracy: ................................................................................. 4

2. Types of Software Piracy ............................................................................................................ 5

2.1 Soft lifting ............................................................................................................................. 5

2.2 Hard disk loading .................................................................................................................. 5

2.3 Renting .................................................................................................................................. 5

2.4 OEM un-bundling ................................................................................................................. 6

2.5 Counterfeiting........................................................................................................................ 6

2.6 Online Piracy ......................................................................................................................... 6

3 Prevention .................................................................................................................................... 6

3.1 Legal protection..................................................................................................................... 7

3.2 Product key............................................................................................................................ 7

3.3 Tamper-proofing ................................................................................................................... 7

3.4 Watermarking ........................................................................................................................ 7

4 Solution ........................................................................................................................................ 7

5 Index ............................................................................................................................................ 8
1 Introduction

Software piracy is the illegal copying, distribution, or use of software. It is such a profitable

“business” that it has caught the attention of organized crime groups in a number of countries.

According to the Business Software Alliance (BSA), about 36% of all software in current use is

stolen.

1.1 Brief Description about Software Piracy:

Software piracy has become a worldwide issue with China, the United States and India being

the top three offenders. The commercial value of pirated software is $19 billion in North America

and Western Europe and has reached $27.3 billion in the rest of the world. According to the 2018

Global Software Survey, 37% of software installed on personal computers is unlicensed software.

Software piracy doesn’t require a hacker or skilled coder. Any normal person with a computer can

become a software pirate if they don’t know about the software laws. With such a widespread

impact, it’s important to understand what software piracy is and the dangers it presents.

When you purchase a commercial software package, an end user license agreement ( EULA )

is included to protect that software program from copyright infringement. Typically, the license

states that you can install the original copy of software you bought on one computer and that you

can make a backup copy in case the original is lost or damaged. You agree to the licensing

agreement when you open the software package (this is called a shrink wrap license), when you

open the envelope that contains the software disks, or when you install the software.

Software piracy applies mainly to full-function commercial software. The time-limited or

function-restricted versions of commercial software called shareware are less likely to be pirated

since they are freely available. Similarly, freeware , a type of software that is copyrighted but

freely distributed at no charge, also offers little incentive for piracy.

2. Types of Software Piracy

It seems that illegal software is available anywhere, to anyone, at any time. The following are

some of the methods by which illegal copies of software circulate among computer users.

2.1 Soft lifting

The most common type of piracy, soft lifting, (also called soft loading), means sharing a

program with someone who is not authorized by the license agreement to use it. A common form

of soft lifting involves purchasing a single licensed copy of software and then loading the software

onto several computers, in violation of licensing terms. On college campuses, it is rare to find a

software program that has not been soft loaded. People regularly lend programs to their roommates

and friends, either not realizing it’s wrong, or not thinking that it’s a big deal. Soft lifting is

common in both businesses and homes.

2.2 Hard disk loading

Often committed by hardware dealers, this form of piracy involves loading an unauthorized

copy of software onto a computer being sold to the end user. This makes the deal more attractive

to the buyer, at virtually no cost to the dealer. The dealer usually does not provide the buyer with

manuals or the original CDs of the software. This is how operating systems, like Windows 95, are

often pirated.

2.3 Renting

Renting involves someone renting out a copy of software for temporary use, without the

permission of the copyright holder. The practice, similar to that of renting a video from

Blockbuster, violates the license agreement of software.

2.4 OEM un-bundling

Often just called “un-bundling,” this form of piracy means selling stand-alone software

originally meant to be included with a specific accompanying product. An example of this form of

piracy is someone providing drivers to a specific printer without authorization.

2.5 Counterfeiting

Counterfeiting means producing fake copies of a software, making it look authentic. This

involves providing the box, CDs, and manuals, all designed to look as much like the original

product as possible. Microsoft products are the ones most commonly counterfeited, because of

their widespread use. Most commonly, a copy of a CD is made with a CD-burner, and a photocopy

of the manual is made. Counterfeit software is sold on street corners, and sometimes unknowingly

sold even in retail stores. Counterfeit software is sold at prices far below the actual retail price.

2.6 Online Piracy

The fastest-growing form of piracy is Internet piracy. With the growing number of users

online, and with the rapidly increasing connection speeds, the exchange of software on the Internet

has attracted an extensive following. In the past, bulletin board systems (BBS) were the only place

where one could download pirated software. Currently, there are hundreds of thousands of “warez”

sites providing unlimited downloads to any user. Often, the software provided through these

“warez” sites is cracked to eliminate any copy protection schemes.

3 Prevention

Software piracy is a major issue affecting organizations and developers alike. Consequently,

companies need to implement anti-piracy protection systems on their software-based products.

3.1 Legal protection

Most companies make sure their software is protected legally by a user agreement. Letting

consumers know that making unauthorized copies is against the law will help prevent people from

unknowingly breaking piracy laws.

3.2 Product key

The most popular anti-piracy system is a product key, a unique combination of letters and

numbers used to differentiate copies of the software. A product key ensures that only one user can

use the software per purchase.

3.3 Tamper-proofing

Some software programs have built-in protocols that cause the program to shut down and stop

working if the source code is tampered with or modified. Tamper-proofing prevents people from

pirating the software through the manipulation of the program’s code.

3.4 Watermarking

Watermarks, company logos, or names are often placed on software interfaces to indicate that

products are legitimately obtained and are not illegal copies.

4 Solution

Even though the argument is there that software piracy isn't necessarily a bad thing, it still causes

more harm than good, especially for smaller software companies. Looking at the solutions,

however, most solutions only help mitigate the problem, not necessarily stop it. Some solutions

include:

1. Stop producing software altogether (Nuclear option, not even remotely close to a plausible

solution)
 2. Create more sophisticated ways of antipiracy protection (such as a WGA for other

software, better software locks, etc.)

3. Move to a open-source model (revenue based on volunteers)

5 Index

B
P
Business Software Alliance, 4
Product key, 7

C
R
Counterfeiting, 6
Renting, 5

H
S
Hard disk loading, 5
Soft lifting, 5
Software piracy, 4
O
OEM un-bundling, 6 W
Online Piracy, 6 Watermarking, 7
open-source model, 8 Western Europe, 4