How to avoid the lure of counterfeit software

By Kim Komando

Lately, amongst my daily flood of spam, I have been finding plenty of offers for new software. These programs are offered at ridiculous prices.

For instance, Adobe Photoshop 7 is only $80. This program retails for about $600. Such a deal! Along with the low prices come some noticeable problems with spelling and grammar: "Super cheep Microsoft, Adobe & all kind softwares here!" Or: "Hopefully my little tips help you out."

The senders can be interesting, too. One of my e-mails allegedly came from Pandora Eufemia. Would you buy from someone with that name?

Well, here's the reality. The prices are super low because the discs, if they exist, are counterfeit. You may encounter bad grammar because much of this stuff is coming from non-English-speaking countries outside the United States. And the names are fraudulent, of course.

Ripping off an entire industry

Counterfeit software use is incredibly widespread. In some parts of Asia and the former Soviet Union, it's a phenomenally high 90% or more. Even in the United States, an estimated 25% of software is counterfeit.

Counterfeiters go to great lengths to fool consumers. Sometimes they break into software distribution houses and take the goods. In some cases, thieves steal only the certificates of authenticity. These certificates are later used to make fake software look genuine.

Or, counterfeiters buy legitimate software and copy the box design and packaging. Using sophisticated and expensive copiers, thousands of illegal CDs can be created in a day.

That's when the e-mails start pouring into your inbox. These e-mails direct you to a Web site where you can purchase the discounted and illegal software.

According to one e-mail, "We're giving you these INSANE discounts because these are the official products without the box, manuals, documentation and guarantees." Caveat emptor!

At least there's some truth in advertising. There are no guarantees. Those suckered into buying from one of these dealers might get a fully working program. But, more often than not, customers are likely to receive non-working products or nothing at all.

Although you may save $500 by purchasing Adobe Photoshop through one of these sites, you'll still be out $80 if the program doesn't work.

Your entire network could be at risk

You could also do more damage than just having to write off $80 as a bad investment. You could potentially ruin your computer or bring down your entire network.

According to Jenny Blank, director of enforcement for the Business Software Alliance (BSA) -- an industry group that battles counterfeiting -- even working programs may contain bugs and viruses. There is a potential to do real damage to your business' computer operations.

Not only does it affect your business, it affects the national economy and the world at large. According to researchers, more than 100,000 U.S. jobs and more than $5 billion in lost wages can be attributed to counterfeiters.

Long gone are the days of the geeky little hacker selling counterfeit software in back alleys. This is an international money-making machine that shows no sign of slowing. The Business Software Alliance (www.bsa.org) says piracy cost software makers more than $13 billion in 2002, the latest data available. (For more on how piracy impacts your business, see this page.)

Not only that, law enforcement agencies and the U.S. government are spending time and taxpayers' money to combat the problem. Security experts have indicated that crime organizations are using counterfeit software to beef up their operations. By purchasing bad software, you're adding to an already big problem.

4 steps to ensure you buy the real thing

The best way to fight counterfeiters is to avoid them completely. Know what you are buying, and buy only legitimate software from trusted sources. Here are four easy steps you can take to ensure you purchase authentic software:

1. Read the advertisement and the Web site to which you are directed carefully. Be suspicious of spelling mistakes, awkward English, and crude packaging. Most legitimate software makers put considerable time, effort and money into marketing and packaging their products; most counterfeiters don't.

2. If it looks like a deal is too-good-to-be-true, it probably is. For example, finding Microsoft Office XP Professional (which retails for $499) priced at $100 should raise some red flags. It's probably not legitimate.

3. Look out for strange groupings of products on one CD. Competing software makers generally do not sell their products together. For example, Corel WordPerfect would never be sold together with Microsoft Office PowerPoint.

4. Check out the company selling the software. Find the address and phone number of the company on its Web site. The Better Business Bureau keeps reliability reports on most companies.

Steer clear of companies that have many unresolved complaints. If the contact information isn't on the Web site, stay away. Companies that don't list contact information on their Web sites probably aren't worth your business.

Meanwhile, if you encounter or suspect software piracy, report it. For more information, see this page.