Software Piracy
According to Wiki.Answers.com, copyright infringement of software refers to several practices when done without the permission of the copyright holder:
Creating a copy and or selling it. This is the act most people refer to as software piracy. This is copyright infringement in most countries and is unlikely to be fair use or fair dealing if the work remains commercially available. In some countries the laws may allow the selling of a version modified for use by blind people, students (for non-educational product) or similar. Differences in legislation may also make the copyright void in some jurisdictions, but not the others.
Creating a copy and giving it to someone else. This constitutes copyright infringement in most jurisdictions. It is not infringing under specific circumstances such as fair use and fair dealing. In some countries, such as Israel, creating a copy is completely legal, as long as it was done from non-profit intentions.
Creating a copy to serve as a backup. This is seen as a fundamental right of the software-buyer in some countries, e.g., Germany, Spain, Brazil and Philippines. It can be infringement, depending on the laws and the case law interpretations of those laws, currently undergoing changes in many countries. In the US, legal action was taken against companies which made backup copies while repairing computers (see MAI Systems Corp. v. Peak Computer, Inc. (1993)) and as a result, US law was changed to make it clear that this is not copyright infringement.
Renting the original software. Software licenses often try to restrict the usual right of a purchaser of a copyrighted work to let others borrow the work. In some jurisdictions the validity of such restrictions are disputed, but some require permission from the copyright holder to allow renting the software.
Reselling the original software. Licenses often say that the buyer does not buy the software but instead pays for the right to use the software. In the US, the first-sale doctrine, Softman v. Adobe [1] and Novell, Inc. v. CPU Distrib., Inc. ruled that software sales are purchases, not licenses, and resale, including unbundling, is lawful regardless of a contractual prohibition. The reasoning in Softman v. Adobe suggests that resale of student licensed versions, provided they are accurately described as such, is also not infringing.
Bulletin Board Sharing/Internet Piracy- Albacea et al (2005) states that this infringement occurs when System Operators shares (electronic transfer) copyrighted materials on bulletin boards or the internet for users to download.
In short, unauthorized duplication, renting, sharing, selling and reselling of an original software is Software Piracy.
There are many forms of Software piracy, but according to BSA.Org the most common types of Piracy in our country are the following :
End-user piracy
This is the most damaging form of software piracy to the BSA, and is also known as “corporate end-user piracy.” This occurs when businesses, schools, nonprofit organizations and government institutions make additional copies of
software without authorization.
Client-server Overuse
This occurs when too many employees on a network use a central copy of a program at the same time.
Internet Piracy
While there are many publishers who offer authorized versions of their software for sale online, there are also numerous pirate operations on the Internet as well:
o Pirate websites that make software available for free download or in
exchange for uploaded programs.
o Internet auction sites that offer counterfeit, out-of-channel, infringing copyright software.
o Peer-to-Peer networks that enable unauthorised transfer of copyrighted programs.
Internet piracy represents perhaps the single greatest threat to electronic commerce.
Hard Disk Loading
This occurs when the business who sells you a new computer loads illegal copies of software onto its hard disk to make the purchase of the machine more attractive.
Software Counterfeiting
This 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 program, as well as related packaging, manuals, license agreements, labels, registration cards, and security features.
Laws Against Software Piracy
The Law against Piracy is known as the IP Code of the Philippines(R.A. No. 8293).
This law protects the original works of individuals like programs, music, film, etc...
According to BSA.Org's website, some notable points about the new law are:
It expressly protects databases and tables.
It grants an exclusive rental right to the copyright owner.
It recognizes and expands the protection of an author’s “moral rights”. That is,
The right of an author to preserve the integrity of their works and their name.
It penalizes the possession of infringing software for the purposes of sale.
Prosecution
Section 217 of R.A. No. 8293 or the Intellectual Property Code of the Philippines states that :
217.1. Any person infringing any right secured by provisions of Part IV of this Act or aiding or abetting such infringement shall be guilty of a crime punishable by:
a. Imprisonment of one (1) year to three (3) years plus a fine ranging from Fifty thousand pesos (P50,000) to One hundred fifty thousand pesos (P150,000) for the first offense.
b. Imprisonment of three (3) years and one (1) day to six (6) years plus a fine ranging from One hundred fifty thousand pesos (P150,000) to Five hundred thousand pesos (P500,000) for the second offense.
c. Imprisonment of six (6) years and one (1) day to nine (9) years plus a fine ranging from Five hundred thousand pesos (P500,000) to One million five hundred thousand pesos (P1,500,000) for the third and subsequent offenses.
d. In all cases, subsidiary imprisonment in cases of insolvency.217.2. In determining the number of years of imprisonment and the amount of fine, the court shall consider the value of the infringing materials that the defendant has produced or manufactured and the damage that the copyright owner has suffered by reason of the infringement.
217.3. Any person who at the time when copyright subsists in a work has in his possession an article which he knows, or ought to know, to be an infringing copy of the work for the purpose of:
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a. Selling, letting for hire, or by way of trade offering or exposing for sale, or hire, the article; cdasia
b. Distributing the article for purpose of trade, or for any other purpose to an extent that will prejudice the rights of the copyright owner in the work; or
c. Trade exhibit of the article in public, shall be guilty of an offense and shall be liable on conviction to imprisonment and fine as above mentioned. (Sec. 29, P.D. No. 49a)
Prosecuted Suspects and companies
Prosecuted suspects and companies according to PAPT.Org
Geo Engineering Corporation - Unlicensed Microsoft and Autodesk Software
Effects of Software Piracy to the IT Industry
Growth of the IT industry is at halt
Unemployment
Lower tax revenues
Lower profit from IT products
“Software piracy rate in the Philippines remained at 71% in 2005. However, losses to the industry went up from US$69 million to US$76 million (Php 3.9 billion) last year. These are among the findings of an annual global personal computers (PC) software piracy study released today by the Business Software Alliance (BSA), the international association of the world’s leading software developers.” (http://w3.bsa.org/philippines/press/newsreleases/2006-Global-Piracy-Study.cfm)
According to Janet Anderson MP, Chair of the All Party Parliamentary Group on Intellectual Property Protection. "Piracy stifles innovation and creativity and clearly has a significant impact on employment, economic growth and public spending."
Known Groups/Organizations against Software Piracy
BSA – Business Software Alliance
An organization that aims to promote the use of legal software.
PAPT – Pilipinas Anti Piracy Team
A unified force of PNP, OMB, NBI and BSA to reduce software piracy in the philippines and effectively implement the Anti-Piracy Law
OMB – Optical Media Board
Previously known as the Videogram Regulatory Board, the Optical Media Board is a Government group that watches over the production of Optical Media.
Sources :
http://wiki.answers.com/Q/What_is_software_piracy
http://www.papt.org.ph/uploads/file/RA8293%20IP%20Code.pdf
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