Is Your Software Stolen?

Pirates Everywhere

Counterfeiting is just one of many forms of software piracy. The most common is committed by people who "borrow" a friend's software and load it on their own PC, or by businesses that aren't careful to buy enough licenses for the software they use.

But more organized forms of piracy abound. Computer resellers and others often release what's known as gray market software--authentic software that's sold in violation of a distribution agreement. Small PC makers load supposedly free copies of software on the systems they sell. Scofflaws post software for illegal download on the Internet. And a few unscrupulous people seek to enrich themselves through counterfeiting.

You may not be overly concerned that software companies lose out when their products are pirated. But when you buy counterfeit or gray market software, you're getting ripped off, too. You won't be eligible for technical support, and you may be buying programs with viruses, or old, buggy versions. Buying counterfeit goods is also illegal. Though you're unlikely to be arrested, you're contributing to a criminal activity. If you're a small business, you could be liable for hefty fines--even if you thought you were buying legitimate software. So it pays to be informed.

Sandy Boulton, director of Autodesk's antitheft division, says, "We've been running an antipiracy program since 1989, and based on empirical data, it looks as if for every legal product we sell, there are seven illegal versions in the market."

The numbers for the software industry as a whole aren't quite as staggering. According to the Business Software Alliance, a coalition of software publishers, 27 percent of all software used in the United States is pirated. Worldwide, that number jumps to an astonishing 40 percent. The BSA estimates that all forms of software piracy cost the U.S. economy $1 billion in lost taxes and 130,000 lost jobs in 1996, and that the U.S. software industry lost $11.4 billion of revenue in 1997.