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Types of Software Piracy

End-User Piracy. End-user piracy is the illegal copying of software without licensing each copy. Sharing or giving a copy of the original CD or the latest PC game to a friend is already end-user piracy. There are also uninformed business owners who assume that Volume Licenses cover their Windows desktop operating system. By installing these Volume Licenses in PCs, they are committing piracy since the license only covers windows desktop upgrades.

Pre-installed Software. Another form of piracy is pre-installed software, or software already installed in PCs bought in computer stores. Always look for and insist on proper license documentation in assembled PCs and be informed on what you are actually paying for.

Internet Piracy. The Internet is a haven of piracy. You could download almost everything armed only with an Internet connection and a PC. When you see a website which allows you to download certain licensed software, verify with its publisher if distribution is allowed.

Counterfeiting. You may have seen imitation copies of software products on stalls in malls or sidewalks. This is counterfeiting or the method of copying an authentic copy of licensed software and reproducing it to resemble the actual product. Even registration cards and serial numbers are included in the package so it appears like the original product. Avoid being fooled by counterfeiting by understanding the features of an authentic copy of the product.

Online Auction Piracy. Beware of online auctions, which sell unlicensed products at a really low price. Most likely it is too good to be true. Sometimes these deals include a special offer to lure you into buying the software, which is non-genuine. This is called online auction piracy, which violates the original terms of sale. The Not for Resale (NFR) or OEM software may not be sold by a third party.


Effects of Software Piracy

The Business Software Alliance (BSA) announced that in 2004, 35% of software used worldwide is pirated, unlicensed, or counterfeit. More significantly, there are still many users who are unaware that their software is not genuine. One may observe that piracy seems embedded in everyday life. But as with any illegal activity, software piracy exists at the expense of others.

Software piracy directly affects the global economy, according to market research firm IDC. Its findings show that if software piracy were to be lowered by 10%, 2.4 million new jobs would be created, along with an estimated US$400 billion to boost the global economy.

There are also more risks involved in using pirated software. Viruses could be included in counterfeit CDs, which may damage your operating system and pose threats in the computer's security.

You also face the risk of identity theft when buying from counterfeit dealers. By providing unscrupulous sellers personal information such as your full name, credit card number, address, and other personal data, you can be a target of identity thieves anytime.

Finally, users with pirated, unlicensed, or counterfeit Microsoft software may not avail of the support and maintenance features provided by Microsoft. If you bought a counterfeit product that is defective, you will not be able replace it with a new one or even get your money back.


Microsoft Piracy Prevention Features

In order to combat piracy and prevent users from being fooled into buying counterfeit products, Microsoft has implemented piracy prevention features that allow buyers to determine that they are actually buying genuine Microsoft software products. These features can only be seen in genuine Microsoft products.

The Certificate of Authenticity (COA), proof of license label, inner mirror band hologram, and wavy edge perimeter hologram are some of the piracy prevention features that you should watch out for when buying genuine Microsoft products (See the Value of Genuine section).


A Guide to Counterfeit Software

Scams
Counterfeit software lurks around and comes from many sources; it is important to buy from a reputable seller or from the Microsoft website itself when purchasing genuine Microsoft software.

Re-bundled software
There are genuine products, which are not intended for resale and are bundled with the Certification of Authenticity (COA) and the End-user License Agreement (EULA) gathered from illegal sources. Check the Not for Resale (NFR) tag on CDs to confirm that the product is not intended for resale.

Auction websites
Auction websites are very attractive when it comes to selling products because of its low price offers. But more often than not, the product being auctioned is counterfeit. These CDs are presented as a compilation CD or a backup copy and offered with a special price.

Spam e-mail messages
Spam messages in e-mail should always be ignored and immediately deleted even though they offer high discounted prices for Microsoft software. Never give personal or sensitive information through spam e-mails, which may lead to identity theft.

Deals from other regions
Avoid accepting deals from other regions even if they are cheaper and perceived as a product with better quality. There are instances where software are stolen from one country then sold with cheaper prices in another country. The best way to buy genuine Microsoft software is to buy locally.

Non-Microsoft.com downloads
When seeking genuine Microsoft downloads, always download from the Microsoft website, and not from any other website that offers Microsoft software. Some websites might have viruses included or offer illegal product codes and broken codes.


Laws on Piracy

RA 8293: Intellectual Property Code of the Philippines
Republic Act 8293 provides power and functions to the Intellectual Property Office (IPO) of the Philippines. The RA 8293 covers regulations pertaining to copyright and industrial property.
Download here


RA 9239: Optical Media Act
Republic Act 9239 is the law regulating optical media, details the purpose of the Optical Media Board, and specifies the penalties to those who disobey the law. It also gives information on licensing and other regulatory provisions from the Optical Media Board.
Download here


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