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Software Piracy

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  • October 2013
  • 1886 Words
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With the vast expansion of technology in recent years, and the exponential growth of information due to the Internet, businesses have faced many changes and challenges. Not all change has been positive, however; with the increased anonymity and ease of sharing information, piracy has become a very real issue for companies, both in and out of the workplace. Piracy can be segmented into two main industries; the multimedia industry which involves the copying of songs, videos and games, and the software industry which is the copying of software licences. For the purpose of this paper, we will be discussing the implications of software piracy, its effects on everyday businesses, and also briefly cover the effects on the industry itself. We will apply the theoretical framework and specify what this issue means to business managers in a practical setting. History

Software Piracy originated in the 1960’s when the CD-RW drive was invented and floppy disks were traded. Since that time, the industry has grown significantly, especially in developing countries, resulting in billions of dollars of lost economic benefits and tax revenue. Prior to the 1980’s, one could pirate software without any legal implications. However, in the late 1970’s, Bill Gates, founder of Microsoft, lobbied for legislation to protect the integrity of software. When an individual or organization purchases software, it is the license to use the software that is purchased, not the software itself. As a result, Software Piracy is now an illegal act in most countries. One of the main advantages of Software Piracy is cost: the software is free or almost free to obtain. In addition, the software is easy to obtain, most often through the internet. However, pirating software brings with it many disadvantages; the main disadvantage being the activity is an illegal offense. Not only is pirating software illegal, quite often the software is not clean of viruses and does not come with manuals and...