What is Piracy?

Piracy comes in many forms, and software piracy refers to several different activities: illegal copying of programs, counterfeiting and distributing software, even sharing a program with a friend.

Software piracy is a form of intellectual property theft, an issue at the heart of the struggle to end software piracy. Pirated software hurts everyone-from software developers to retail store owners, and ultimately to all software users.

The illegal duplication and distribution of software has a significant impact on the economy resulting in job losses, retail losses, and government tax losses - money that would have gone back into families and communities.



  • Quality - can be dysfunctional, lacking in proper documentation, warranty, and/or support; no ability to upgrade or compromised ability to receive important security updates
  • Viruses - pirated software can be infected with viruses; with no benefit of technical support, your hard drive or network can be severely damaged
  • At Work - Your entire company could be at risk for copyright infringement; dealing with dysfunctional software or viruses wastes company time, money, and resources

Types of Software Piracy

There are actually many distinct types of software piracy, and familiarity with them can protect you from any connection, even if unintentional, to intellectual property theft.

End-user piracy: When users copy software without appropriate licensing for each copy; applies to both individuals and companies who do not monitor their licenses.

Pre-installed Software: When a computer manufacturer takes one copy of software and illegally installs it on more than one computer.

Internet Piracy: When unauthorized copies are downloaded over the Internet. Read more on safe Online Shopping Tips

Counterfeiting: When illegal copies of software are made and distributed in packaging that reproduces the manufacturer's packaging.

Online Auction Piracy: takes several forms, such as:

  • Software resold in violation of the original terms of sale, NFR (Not for Resale), or OEM software that is never authorized for resale by a third party.
  • Online distributors offering special deals with the software publisher, liquidated inventories, or acquisition through bankruptcy sales.

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Why Licenses Matter

Owning software is different from other types of ownership. Microsoft software products each come with a license which grants you the legal right to run or access the software; while a license agreement governs the use of licensed software.

Both are critical to protecting intellectual property and ensuring your safety against sub-standard products and virus vulnerabilities.

By using licensed Microsoft software, you ensure that your products are fully supported, and that critical updates are available when needed.

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