Edward DeV. Bunn, Jr.
Internet Software Piracy


 

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  This is a study of the origin, development and growth of software piracy on the Internet and the consequences of piracy under the NET Act of 1997. It traces Internet piracy from its very early beginnings through its evolution into a modern-day cult-like status—a troublesome phenomenon unrecognized by the general public. This study provides the inside skinny on how pirates effectuate piracy, and where they congregate and ply their wares. It relates the tools and methods that are now being used by newcomers to easily and quickly become expert pirates—joining the   ranks  of   pirates  previously   limited mostly to college students and more technologically inclined individuals. This swelling group of pirates freely, but illegally, use and exchange software through a well-defined underground network. The address of the top sites where pirates converse and transfer their free software is disclosed in an appendix. The study not only provides the easy steps for a novice to become an expert pirate and how to join the piracy cult, but also instructs the software manufacturers on how to stop the piracy. The tools used and the process by which software is pirated is vital information to software manufactures, as well as to both small and large businesses that lose millions of dollars each year to piracy.

        It is estimated that some 15,000 computer programs are written each day in the United States and the total value of this software is in the tens of billions of dollars. Some software sells for more than $1,000,000. A serious problem is developing on the Internet, as there is the growing indiscriminant free exchange of software. Worldwide, more than 38% of all software in use has been illegally pirated. At one time, this free exchange involved primarily small dollar items, but it is now common to see the free exchange of industrial software packages costing upwards of $250,000. The fact that piracy has taken on a cult-like status compounds the seriousness of this theft.

     The growing technological sophistication of the Internet is making hacking and cracking easy and fun for “everyone.” The recent advent of cheap and efficient technology for copying software, the increased computer storage and processing capabilities and the high-speed access to the Internet, with its relative low cost and its broadening accessibility, has made the Internet an ideal medium for software theft. Also, there is a plethora of new programming tools which automate the theft process. As Internet connections and intersystem connections have increased, there has been almost a corresponding increase in security breaches and the pirating of software. “I do not know how to stop a revolution like this,” said Silicone Valley entrepreneur and investor Guy Kawasaki, "it is like the barn door has been left open and the horses are running free.
 

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