Throughout the United States consumers and business may be involved in illegal and unethical practices and not even know it. But what they don't know can cost them big bucks and a lot of embarrassment.

Software piracy comes in many shapes and forms, which can find their way into the workplace. Below are brief descriptions of the most common types of software piracy and what you can do to keep them from affecting you.

Counterfeiting is the illegal duplication and sale of copyrighted material with the intent of directly imitating the copyrighted product. In the case of packaged software, it can include packaging, documentation, labels, registration and security precautions.

Carefully check the authenticity of any product you acquire, by purchasing from reputable software dealers only and by checking the Certificate of Authenticity and other documentation at the time of purchase.

End-user software piracy occurs when businesses or individuals make unauthorized copies of software in different ways:

• By using one disk to install a program on multiple computers.
• By copying disks for installation and distribution.
• By taking advantage of upgrade offers without having a legal copy of the version to be upgraded.
• By downloading software from the Internet.
• By swapping disks in or outside the workplace.

Carefully check the licensing agreements at the time of purchase/installation because authorized use varies from manufacturer to manufacturer. Educate your employees on legal software use. Ask them to sign an agreement acknowledging their understanding of and adherence to the law.

A "Gold" CD-ROM is a CD on which pirates have placed unauthorized copies of programs. These CDs are often "compilation" CDs, including thousands of dollars of software for minimal prices.

Unlike counterfeit CDs, which try to duplicate the appearance of legitimate software, purchasers of Gold CD-ROMs know they are purchasing illegal software.

Ensure that all installation CDs are original CDs.

Avoid handwritten or similarly "home-grown" labels. If software is being offered for prices that are "too good to be true," they probably are. Purchase from reputable dealers only.

As Internet access becomes standard in the workplace, online piracy is rapidly growing. Programs can be transferred or downloaded easily and anonymously, often at the click of a mouse. It is the same as if you were making an unauthorized copy of a disk.

Educate your employees on what can and cannot be downloaded or uploaded.

When businesses make the switch from a "standalone" environment to a network environment, they often rely on resellers or consultants to install the network and manage the transformation. Sometimes they may load pirated copies of software onto servers and you may be consequently placed at legal risk. It is important to remember that software loaded onto servers for use in a network environment is also subject to license restrictions. Appropriate licenses will authorize use of one installed copy by multiple users, but only within the limits of the license provisions.

Exceeding the permitted number of users constitutes unauthorized use. Just because one original piece of software is purchased does not mean the number of users is immaterial.

Make sure that there are sufficient software licenses to meet the needs of every software user in your company and projected increases to your workforce. When software is to be loaded onto a server, ensure that the appropriate number of licenses has been purchased and no more than the licensed number of users has access. When dealing with resellers and other third parties in managing your network, be certain to deal with reputable parties and to obtain original disks and documentation for all software installed.

When you acquire pirated software, you are buying an unknown quality. It could be, and is likely to be, defective in some way. If you are "lucky," that defect will only be that the software doesn’t work properly. Of course, when that happens, you have no one to go to for support or assistance. With legal software you have recourse when problems develop. If you are not "lucky," your system could be damaged or even destroyed by a virus introduced by the pirated software.

Software piracy can result in both civil and criminal liability. Specifically, piracy can expose your company to heavy fines per work infringed.

The industry works with law-enforcement agencies around the world to bring criminal cases against software pirates. Enforcement activities against software pirates in the distribution channel also result in detection of infringing software that has been sold or installed on end-users’ premises.

There are other risks when you use illegal software:

• Tarnished reputation for being found liable for copyright infringement or being convicted of a criminal offense.
• Criminal charges against directors and managers who consent or turn a blind eye to illegal copying of software.
• Employees faced with criminal charges for simply following company policy.
• No assurance of product authenticity or reliability.
• Forfeiture of product warranties and low-priced or free upgrades.
• Lack of user manuals, reference materials, and product support.

No original disks, leading to inability to recover from a software failure.

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