The Consumer Pitfalls of Software Piracy

Product piracy involves the unauthorized imitation, reproduction and sale of products - ranging from watches and clothing to software and computer components. It is more widespread in countries where anti-piracy laws or their enforcement are not strong enough to sufficiently protect intellectual property rights.

When it comes to curbing software piracy, however, the global record, as a whole, is shaky although there is still a great deal of variation in the success rates of different countries in tackling the problem. According to the Business Software Alliance, up to 40 percent of installed business software worldwide is pirated. The online nature of transactions involving counterfeit or unlicensed software products makes them harder to police. Access is usually just one download away for the consumer, easing both the logistical challenge and ethical dilemma of acquisition in one quick step.

A widespread form of software piracy involves the use and distribution of products beyond what the license covers. So, for instance, a person may loan a disk to a friend for copying, or a small business may buy an application licensed for a single user and install it on multiple systems in its office. Since an authentic version of the product is first purchased at the prevailing market price, users find this form of piracy easier to justify. However, what they ignore is that such actions still violate software licensing agreements and the copyright laws of most countries. Lack of awareness among consumers on what really constitutes piracy and what could be the hazardous impact associated with it, is the most critical issue in the present scenario.

On the face of it, pirated software may appear to benefit the consumer by giving him easy access to low cost products. However, there are several hidden costs involved in the process that are ultimately borne by the end user. Depending on the source, the pirated software in question may be incomplete or damaged. This translates into lower productivity and greater end user frustration as a result of missing features or insufficient functionality.

A piece of pirated software is, in essence, a standalone product that has none of the protection and support (including warranties, money back guarantees, technical support, regular updates, maintenance releases, etc) that properly licensed software is bundled with. Hence, in the long run, the usage and maintenance costs of operating such unprotected software are likely to be high for the consumer.

Another cause for concern for pirated software users is their greater exposure to security issues. Using unverified sources for software downloads may also cause viruses to infiltrate a user's system. The damaging effects of such infiltration vary but, at the very minimum, it is likely to introduce bugs that slow the user's system or hamper its performance in other ways.

The risk associated with providing personal and credit card information to counterfeiters online is another aspect that consumers don't always take seriously. In the wrong hands, this information could be used for identity theft and the perpetration of fraud. Going through an authorized vendor ensure the safety and security of the software purchase transaction.

Liability and penalty due to piracy are also risks that consumers should not ignore. Often, individuals feel that the low profile and seemingly minor nature of their violations will keep them safe from the law. However, India's Copyright Act explicitly describes its applicability against ‘those who knowingly use infringing copies of computer programs'. In this respect, individuals and businesses are both liable in cases where they use pirated software.

Although enforcement of these anti-piracy laws has been weak so far, this is likely to change as the government is pressurized to minimize the negative impact that piracy produces on companies, jobs, and the economy as a whole. For their part, consumers may end up paying a little bit more upfront for their software needs. In the final analysis, however, they will benefit from the protection, security and peace of mind that comes from using fully licensed software.