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Many businesses, both large and small, face serious legal risks because of software piracy. Under the law, a company can be held liable for its employees’ actions. If an employee is installing unauthorized software copies on company computers or acquiring illegal software through the Internet, the company can be sued for copyright infringement. Even if the company’s management was unaware of the employee’s actions.

In addition, the government can criminally prosecute you for copyright infringement. If convicted, you can be fined up to $250,000, or sentenced to jail for up to five years, or both.  And don't think because you are a small company or an individual that they won't take you to court....they have and they will.  Many companies including Microsoft go after small companies and even individuals selling pirated software.

As defined by Wikipedia, software piracy is "copyright infringement of software".  When you purchase software, you do not become the owner of the copyright. What you are purchasing is the right to use the software under certain restrictions imposed by the copyright owner.

There are several ways that software copyrights are infringed on:

End-User Piracy:

  • Using one licensed copy to install a program on multiple computers
  • Copying disks for installation and distribution
  • Taking advantage of upgrade offers without having a legal copy of the version to be upgraded
  • Acquiring academic/non-retail software without a license for commercial use
  • Swapping disks in the office or at home

Client-Server Overuse:

  • This type of piracy occurs when employees on a network are using a program from the server at the same time, without valid licenses for each employee.

Internet Piracy:

  • Pirate websites that make software available for free download or in exchange for uploaded programs
  • Internet auction sites that offer counterfeit copyrighted software
  • Peer-to-Peer networks that enable unauthorized transfer of copyrighted programs

Software Counterfeiting:

  • This type of piracy is the 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.

Protect yourself from Software Piracy.

How can you tell if the Microsoft software you using is legitimate?

What is a Microsoft Certificate of Authentication?

 
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