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Software Piracy

Kartikye Kasera-112 Deepak Mehta-114 Nehal Khosla-117 Shivendra Singh-122 Neerav Sundriyal-124 Dishank Shah-318

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

Making more copies of the software than the license permits = Piracy




There are two main types of software piracy that

are recognized by the Business Software Alliance

Corporate Piracy. This form of piracy is caused by the

installation of software on multiple computers, overstepping the terms and limits of the licensing agreement.

Internet Piracy. With this form of piracy the internet is used as

a means to provide unlicensed, downloadable copies of software applications.

Types of Software Piracy

1. End User Piracy Company employee reproduces copies of software without authorization. 2. Client-Server Overuse: Too many employees on a network are using a central copy of a program at the same time. 3. Internet Piracy: Software is downloaded from the Internet.

4.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.

5.Software Counterfeiting:

The illegal duplication and sale of copyrighted material with the intent of directly imitating the copyrighted product.

Software companies deal with extremely high losses due to software piracy. Pirates gain a lot of money from their software piracy.

People are not aware that what they are doing is a crime.

Governments will have losses due to the reduced tax revenues. Foreign investors might be unwilling to invest in countries with a high level of intellectual property investment risk.


Applications that are unprotected or insufficiently protected are the easiest to duplicate Crackers are attracted because they believe they can crack the application and sell reduced cost copies for personal financial gain. Applications that have a high production cost per unit attract crackers if they can crack the application, they can and sell copies and make personal financial gain. Applications that are touted as highly secure are immediate targets for hackers. Applications that sell in large volumes at a low price attract crackers who see these applications as a gold mine.

Forms of software piracy

Auction Site Piracy

Forms of software piracy

FTP Sites

Forms of software piracy

P2P Sites

Forms of software piracy

Cracks, patches & key-gen sites

Full-fledged copyright law in the form of the Copyright Act of 1957. Software is treated as a Literary Work.

Indian software piracy & the law

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.

Literature Review

Global Survey of Software Users

The surveys were conducted, online or inperson, in 32 markets that make up a globally representative sample of geographies, levels of IT sophistication, and geographic and cultural diversity. Determine the software load for each country.

Calculating Software piracy Rates

The basic method for coming up with the piracy rate and commercial value of unlicensed software in a country is as follows: Determine how much PC software was deployed during the year. Determine how much was paid for or otherwise legally acquired during the year. Subtract one from the other to get the amount of unlicensed software.

Calculating the Commercial Value of Software piracy

Having calculated the total units of software installed, as well as the number of legitimate and unlicensed software units installed and the average price per software unit, IDC is able to calculate the commercial value of unlicensed software:

What Software Is Included

calculates piracy of all software that runs on personal computers. The study excludes software that runs on servers or mainframes and routine device drivers, as well as free downloadable utilities

Step 1
acquiring software and copying it from its original form


creating new software based upon the intellect behind the original product.

Step 2 distribution of the illegal product, most commonly using means of the Internet

copies of the program on a CD-Rom. Step 3 The receiving of known pirated software or using legally purchased software in a way that the license does not permit.

Characteristics that can take on different values, such as situational conditions, constraints, opportunities, identity markers, relationships eg. temperature of a place over a period of time

Variable Types
Dependent variable
Variable of primary interest to the researcher, also called criterion variable The one that is not manipulated

Independent variable
One that influences the dependent variable One manipulated by the researcher
1. 2. 3. 4. 5. Education Business Law enforcement Technology Lower the prices

Prospect of stopping software piracy

Schematic Diagram for the theoretical framework

Education Business

Law enforcement Prospect of stopping software piracy Technology

Lower the prices

Independent Variables

Dependent Variable

The goal of education is to instill in people the moral fibers that they are lacking when it comes to software piracy. Educating people that pirating software hurts the developing company by
lowering its profits, consumers by rising of the price of the product causing job losses and the loss of taxes that should go back to the government.

Public law enforcement

This directly relates to the attitude that the thief believes he or she has little chance of being caught. The individual user has very little to fear because law enforcement cannot nearly track each and every instance of software piracy. Law enforcement can merely tackle the larger distributors and makers or copiers of the software.

Businesses can help stop software piracy Businesses can file lawsuits for each case of software piracy that they can prove. Development companies generally stick with large lawsuits that they can win against other companies and receive restitution in a large sum of money. To track down Internet sites that are distributing the copyrighted product, and take steps to get those sites shut down.

The development of new technologies will bring a halt to software piracy by
securing the information forcing users to conform to using the software according to the licensing agreement. keep people from copying the CDs that products are distributed on

But, technologies introduced in the past which have been ineffective and have been bypassed by software pirates in order to once again distribute the information freely.

Lower the prices

If the software becomes less costly
the user will purchase

Try to convert people who are pirating software into buying legal copies of their software for the future Attract those people that decided to just do without the program.

When a proposition about an observable phenomena (concepts) is formulated for empirical testing, it is a hypothesis Thus the hypothesis here is:- Is one of the mentioned factors or the combination of factors useful for stopping software piracy?

Methodology and Data Sources

For any research to be successful the most important part is

1. The basic research plan 2. The data sources that will be used for analysis.

The main goal is to determine if anyone or combination of the social responses can stop the three steps in the process of software piracy.

Step 1
acquiring software and copying it from its original form


creating new software based upon the intellect behind the original product.

Step 2
distribution of the illegal product, most commonly using means of the Internet

copies of the program on a CD-Rom.

Step 3
a. The receiving of known pirated software or using legally purchased software in a way that the license does not permit. b. Its referred to as softlifting. c. Softlifting occurs when a person does legitimately purchase software but installs it onto multiple computers which is a violation of the licensing agreement. d. Softlifting may also be called softloading or end-user piracy.

The main purpose of the surveys 1. to collect the primary data 2. Its the data collected and assembled specifically for research project in hand.

Population & Sampling:

Sampling becomes a major issue since the value of survey research findings depends heavily on the quality of the research sample.
Sampling is basically used to measure attitudes from a large population and is thus expensive. The sample must accurately represent the population, or else the research findings are of questionable value.

Rating Scale
The rating scale technique has also being used as a part of the data analysis in our survey providing the participants with a questionnaire containing two questions with certain options as the possible answers.
They were asked to rank the options from most important to the least important which helped to understand the major driving factors for a person to buy software and the driving factors for copying software.

There are bound to be many errors in the sampling and surveying process. However, we have tries to eliminate as many errors as possible during selection of the samples.

BSC(Business Software Alliance)

Since 2003, BSA has worked with IDC, the leading provider of market statistics and forecasts to the IT industry, to determine PC software piracy rates and the commercial value of pirated software. The process involves collecting 182 discrete data inputs and evaluating PC and software trends in each of 116 markets.
The BSA Global Software Piracy Study calculates piracy of all software that runs on personal computers including desktops, laptops, and ultra-portables, including netbooks.

According to the BSA(Business Software Alliance) based in America who globally record the software piracy records. There have been more than $59 worth of Software piracy last year.
The driving force behind this is the fastestgrowing markets.



These are independent Programs that are automatically downloaded on the users PC whenever the user surfs the internet, or downloads free Software form the internet

Adware is an tool which is basically used by advertising companies to expand their business Comes in the form of popups, unexplained advertising programs on your computer desktop like Casino Night. Advertising companies hope to generate money from customers who receive the popups or unexplained programs on their computers. It is an legal program


1. Advertising companies uses spyware to mine data to further help them advertise better.

2. Uses your Internet connection and reports statistical data about you and your surfing habits to a 3rd party 3. Violating your privacy

4. Completely illegal program.

E.g.. Key loggers

Pop-ups: Appear on screen without user calling for them. Pop-Unders: Open underneath users active browser window and do not appear until user closes active window.


1. Continuous Pop-ups messages.

2. Slower Computer Processing.

3. Longer Start-up time of PC

4. Persistent change in the homepage

120 billion ad impressions per month 10% is created by Spywares

In Nov 2007, 257618 adware or malware sites were found Helped in identifying ISPs. Worst ISP iPowerWeb (hosts more than 10,000 such sites)

Data Analysis and Results



below 25 25-50 50 +


0 15

Whats your profession?

a) student b) IT professional C) other


Do you buy software?

10 25 Do you buy softwares



65 Cant say

Have you downloaded a software?

0 12


have you ever downloaded a software

yes no dont know


Are you using a pirated software?

0 10


are you using a pirated antivirus?

yes no dont know


Downloaded software may be a virus?

0 15

do you know downloaded softwares may be viruses? yes 45 no i have an antivirus cant say


Ready to purchase
Other (if any)

Prestige of having own copy

Stay informed of upgrades Don't have to worry about computer viruses It's school/company policy Can't find someone who has it It's the law Can use technical support in case of problems Availability of manual Use the software all the time Required for school work or workplace Percentage






Ready to copy
Other (if any) Can't afford the software Most people I know copy software Little chance of being caught Software license too restrictive

Want to try out the software

New version is coming up Software too expensive It is easy to copy software Only use it for a short time 0 5 10 15 20 25


The best way to prevent software piracy is not going to be found in any one of these social responses. Instead a possible solution could be found in a combination of responses each aimed at a different step in the process. Lowering the prices for the product is the first step and one of the most effective means of controlling software piracy. Targeting the distributors of software piracy using either law enforcement or through better technology, making it impossible to copy software, will provide the ability to slow down if not stop software piracy. The only other possibility to stop software piracy is to cause software pirates to fear what they are doing. If software pirates fear that what they are doing will get them into trouble the majority of them will stop pirating and start buying their software. With software piracy the ability to remain anonymous and yet quickly get free software is too appealing without any drawbacks. The only way to scare a software pirate is to take away all the programs they have, their computer, and their ability to get more.

Limitations and Recommendations

The limitation of our study was that the data obtained was less and confined to a small area. In order to extend the scope of the research wider demographics of citizens, belonging to various age groups, profession and gender can be analyzed. As the questions asked to the people were quite direct, some people may not have entered the correct reasons for software piracy i.e. inhibitions towards accepting the fact like software is too costly or unaffordable exists. In our research we found out that many people dont actually know whether the software they are using is pirated or not. Thus a research can be conducted on the awareness among people about software piracy and the people who may be selling fake software as the original ones. A study can also be made about the harms pirated software may have caused to a user in some form or the other. Such a result will be useful in creating awareness among the people regarding use of pirated software.

Say NO to Piracy

Issued in Public Interest

Thank You