Internet piracy is a term used for the general use of the Internet to illegally copy or distribute counterfeit or other unauthorised software. Internet piracy occurs when the Internet is used to advertise, offer, acquire or distribute pirated software. Software is one of the leading products distributed online, and according to a report published by International Data Corp., the worldwide market for electronic software sales reached $3.5 billion in 1999.
During the past few years, the sale of counterfeit software to unsuspecting consumers through Internet businesses and auction sites has multiplied and become a challenging problem for consumers, legitimate Internet businesses and the software industry. It is estimated that there are millions of Internet sites (including Internet auctions) selling illegal software and passing it off to consumers as genuine product.
The ease of distribution on the Internet, which allows anyone to create an Internet page and appear to be a legitimate business, has contributed to increased sales of pirated software. The explosive growth of the Internet, combined with the anonymity and sheer volume the medium offers, are also factors that make it easier for criminals to sell counterfeit and otherwise illegal software online.
Disreputable online businesses often have such professional-looking Internet sites that even the savviest of consumers can fall victim to them. Distinguishing counterfeit and illegal software on the Internet is extremely difficult because consumers can't examine the product to look for physical warning signs of counterfeit software or see the person from whom they're buying it.
Many consumers who purchase software over the Internet never even receive the programs they've paid for, and they are often unable to get their money back if they discover that the software they purchased is counterfeit.
Education and awareness are the best defenses against falling victim to counterfeit software. To protect themselves, their data and their wallets, consumers should exercise caution when acquiring software over the Internet and be familiar with the warning signs of pirated software in order to avoid unknowingly purchasing it from online businesses and auction sites.
Download the Warning Signs of Counterfeit or Illegal Software Microsoft Word document (197k)
Awareness makes a world of difference while shopping online. Here are some tips to help consumers shop smart and safely:
| • | Be aware that not everyone is as honest as you are. Counterfeit software is widely available through Internet businesses and Internet auctions. |
| • | Get full company addresses and phone numbers up front. Avoid doing business with companies or individuals who are unwilling to verify their identity or full business name or provide a physical street address and telephone number for follow-up after the transaction has occurred. |
| • | Always ask for full details regarding return, service or warranty policies. Avoid purchasing from online distributors who are unwilling or unable to provide adequate or satisfactory descriptions of these policies. |
| • | Keep records. Print out the page with the order, as well as any e-mail order confirmations, and keep them until the software arrives and proves satisfactory. |
| • | Check product prices to reduce the risk of buying illegal software. If the price seems too good to be true, it probably is. As a guide, check the offer against the publisher's recommended or estimated retail price. It's OK if the price is lower, but be wary if it's too much lower. |
| • | Be cautious of online distributors that offer unusual inventory explanations such as special deals with the software publisher, liquidated inventories or acquisition through bankruptcy sales. Counterfeiters often use these types of phrases to fool consumers into believing that they are getting genuine product that was overstocked or that otherwise deserves to be discounted. |
| • | Review and understand the products. It is easy to be misled by software that is commonly misrepresented on the Internet. Distinguishing counterfeit and illegal software on the Internet is extremely difficult because you can't see the product or the seller. Take the time to read reviews and talk to colleagues, family and friends, not just about the products you plan to acquire, but also the people you're acquiring them from. |
| • | If in doubt, call the software publisher. The publisher will provide details about what should be received as part of the acquisition and will give an indication of the price range. When acquiring Microsoft products, consumers can call the Microsoft South Africa call centre - 0860 3355 67. Consumers can obtain more information about software piracy by calling the Business Software Alliance anti-piracy hot line at 0800 110 447 or sending e-mail to info@bsa.co.za |
Test purchases and other investigations have confirmed that a significant portion of the Microsoft software sold on auction sites is counterfeit or otherwise infringing product. Microsoft has recently begun to work cooperatively with auction sites to help ensure that the software available on their sites is legal.
Microsoft and eBay have initiated an aggressive program to stop auction sites that Microsoft believes may be distributing infringing product. Microsoft monitors all auction sites and conducts daily searches to identify auctions suspected of offering counterfeit or infringing software. The company notifies eBay of suspect auctions and asks them to terminate the auctions within 24 hours. The vendors are urged to end their illegal actions, and the bidders are warned and pointed to information on software piracy. Although this program started with eBay, Microsoft has also begun similar programs with several other auction sites.
Consumers should be familiar with the warning signs of illegal software and practice safe Internet shopping in order to avoid being victimized when acquiring software from Internet auction sites.