Have you ever stopped to wonder whether the software you download from the Net is copyrighted or not? Did you ever think twice about borrowing computer software from a friend, for your PC? Did you know that it's illegal to do so, and that you could be fined?

The answer to these questions is probably in the negative, since most of us aren't even aware of basic copyright rules.

So, what exactly constitutes software piracy? It's the illegal distribution, reproduction or use of a software product without a license. This is generally done in the following ways: By a consumer (you and me) copying software programs from the office or friends, via dealers through counterfeit and hard disc loading in the case of assembled computers, misusing education software sold at concessional rates, and by copying from the Internet or CD-ROMs.

The Internet has been an easy medium of distributing software. Many pirates have sites for software products, and consumer can rarely distinguish these from the genuine. Software programs are also distributed and duplicated illegally via mailing groups and email.

According to Business Software Alliance, the worldwide organisation representing software developers from around 65 countries, the annual estimated loss due to piracy is $12.8 billion (US). The loss in the United States itself is $2.2 billion. A graphical representation of country wise loss, worldwide is depicted here.

Not only does piracy increase the price of genuine computer software, it also results in a loss of jobs, revenues and growth in the industry. The crunch is ultimately felt by the consumer, who ends up with inflated prices. A shocking fact: 109,000 jobs were lost in the US in 1998 due to software piracy.

There are other reasons why you shouldn't use pirated software, according to Microsoft's Anti Piracy initiative, which warns that such software might contain harmful viruses, is not eligible for technical support or product upgrades, and involves high legal costs and fines.

In India, software piracy rates were as high as 89 per cent seven years ago, and dropped to 61 per cent in 1999. According to this report, two in three software programs in India are stolen, and the annual losses are more than Rs 9 billion.

In this interview, the President of NASSCOM, Dewang Mehta, who passed away earlier this year, estimated that piracy is more prevalent in SOHO and training institutes. Initiatives taken by the organisation, including 54 anti-piracy raids in 1999-2000, resulted in over 100 arrests all over the country.

NASSCOM has also established a hotline, removed import duties on software, and launched a media campaign against piracy and increasing awareness at all levels of users - home, corporate, business and law enforcers.

You can also use an online form to report cases of piracy. For users of computer software, 'Ten Tips for Software Shopping' and the '2000 Global Piracy Study' throws light on the latest research on the subject.

So, the next time you borrow a CD, or copy software from the Internet, give these facts and figures a thought. While you will probably not 'suffer present death' like pirates of the high seas, your ignorance could lead you into a lot of trouble and also cost someone else a job.

Additional Resources:

Microsoft Anti-Piracy Centre
- How can you as a consumer ensure that you are buying legal software?
- What is Internet Piracy?
- FAQ's: Is it legal to copy software from your PC to your laptop?

Business Software Alliance
- Asia site of BSA highlights developments in this region
- Types of Internet Piracy

Laws in the US
- Anti-Piracy laws

NASSCOM
- Anti-piracy activities in India
- Statistics related to piracy