A Study of Software Piracy

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A Study of Software Piracy: the Forms and the Impacts to Taiwan BUS 6170 Information System Management

Instructor: Professor Ryan LaBrie

Seattle Pacific University
Gini Cheang

Table of Contents
Types of Software Piracy4
Appendix 113
Appendix 214
Appendix 315

Software piracy has seriously affected the global economy as well as the software developments and the profits of IT industry. It is very important for us to understand the forms of software piracy and impacts of it. This paper focuses on the software piracy in Taiwan, and there are a lot of findings and statistics related to the software piracy impacts from an economic point of view. From understanding the results of software piracy and the benefits of reducing it, we can take a step further to research on the intentions and factors of software piracy and suggest the ways of eliminating this crime.

In 2008, the rate of software piracy dropped in about half (52%) of the 110 countries studied and remained the same in about 35%. However, the worldwide piracy rate went up from 38% in 2007 to 41% in 2008. The global rate rose for the second year in a row because PC sales grew fastest in high-piracy rate countries such as China and India. (BSA, IDC, 2009) Among the lowest piracy countries, Taiwan has a higher piracy rate of 39% and loss of $201 million dollars. Ethics balances the social moral value and order with its invisible but powerful existence, and it is the guideline of behaviors. Ethics has always influenced Chinese culture unobtrusively and imperceptibly. [ (Yeh, 2000) ] Nearly 1.7 billion people around the world use the Internet. Software and computers have become indispensable tools in our businesses, schools, and personal lives. However, no technology or tool is without risk, and wherever people gather, there are bound to be criminal elements on the fringe of the crowd. (BSA, 2009) The flourishing technologies brought social disorders, and software piracy is one of the most severe problems. Almost every day we hear about a new virus spreading through millions of computers; or about companies and government agencies losing sensitive data of employees, customers, and citizens; or in one recent case, about peer-to-peer (P2P) network use exposing confidential witness lists in a high-profile trial of a serious crime. Therefore, in order to guard the Chinese tradition and the economy of Taiwan in this world with high informatization, we need to understand the behaviors and impacts of software piracy and move further to develop more strict laws and educate the society with stronger information ethics.

Types of Software Piracy
Understanding the different types of software piracy will help users avoid problems associated with illegal software and develop trainings and regulations. There are five most seen formats of software piracy. 1) End User Piracy

This occurs when employees reproduce copies of software without authorization. End User Piracy has a few common forms: * Install many computers with only one legal copy
* Copying disks
* Taking advantage of upgrade offers without a licensed copy * Using academic/restricted/non-retail software
* Swapping disks in/outside the workplace
2) Software Counterfeiting
This type of piracy is an illegal duplication and sale of copyrighted material with the intent of directly imitating the copyrighted product. In the case of packaged software, it is common to find counterfeit copies of the CDs or diskettes incorporating the software programs, as well as related packaging, manuals, license agreements, labels, registration cards and security features. 3) Client-Sever Overuse

This type of piracy happens when too many users (more than allowed by the license) on a network are using...
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