Global Software Piracy

Presented by Group A7:1. Nikhil Sheth2. Ganesh Kumar3. Mradul Khandelwal4. Pranav Kumar Tripathi5. 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

OriginalPirated

Pirated

OR

$300 $800

What’s the case all about…

• Golden Shopping Arcade – Honk Kong

• Software Piracy• US Copyright Act

• Companies taking Anti Piracy measures

Watch this print ad…

Microsoft has an anti-piracy team called Keep It Real (CRN, 20 February 2006), which travels around the UK educating businesses in software piracy.

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 yetreleased

Finally, we also contributed to Piracy by buying MP3 for Rs. 25

Types of Software Piracy

1. End User PiracyCompany 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.

Forms of software piracy Auction Site Piracy

Forms of software piracyFTP Sites

Forms of software piracyWarez Sites

Forms of software piracyP2P 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 Picture Association of America, Inc. (MPAA)

Growing tentacles of Indian piracy:‘Indian

software piracy rate = 72 %’ -

NASSCOM

‘1st Indian state to start an IPR court : Karnataka’

Ravi Venkatesan, MD- Microsoft India

1st state to have a specific piracy law : Tamil Nadu

Sanjay Mohite, DCP (Enforcement), Mumbai

‘Bollywood piracy market > Rs. 1000 cr. with losses

of Rs. 1500 cr.’ – TOI report 14/10/07

Pak organized

terror funded by piracy

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• IIPA recommends

that 15 countries be placed on the top Priority Watch List

• Argentina• Brazil • Bulgaria• Chile• Colombia• 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

2. Implement the WIPO Copyright Treaty

3. Create Strong and Workable Enforcement Mechanisms as required by TRIPS

4. Step Up Enforcement with Dedicated Resources

5. 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

1. In this Piracy inhabited market, are the companies also getting benefited or involved?

2. 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