The effects of software piracy on digital culture
Peer to peer (P2P) file sharing technologies have lowered the threshold of knowledge needed to acquire massive amounts of information. Large networks have been created which are dedicated to share knowledge, but these same networks can be used to distribute infringing material. Identifying infringing material isn't always trivial, since the users can modify the name and content of material being shared.
Software piracy is illegal due to the supposed potential economic loss that it inflicts on the copyright owner. Software authors argue that even if it is assumed that only a portion of those infringing the author's copyright would ever have bought the software, the author would still suffer a theoretically economic loss as a result.
Software authors suggest that copyright infringement negatively affects the economy by decreasing the profits that allow for further development and growth within the software industry. The U.S. is the country most affected, as they provide about 80% of the world's software. Software counterfeiting is claimed to be a large problem by some, resulting in a (theoretically) revenue loss of US $11–12 billion, China and Vietnam being the biggest offenders.
It has been suggested that counterfeit software will decline so much as to be eliminated in the future, but there are measures being taken and rules being put into place to work towards this goal. "In the United States, for example, the level of piracy has been reduced from 48% in 1989 to 25% in 2002." Rise of quality in free alternative software also helps to lower the use of copied software worldwide. Illegally copying software is seen by some software producers as a "lesser evil" than actually buying or illegally copying a competitor's software. Jeff Raikes, a Microsoft executive, stated that "If they're going to pirate somebody, we want it to be us rather than somebody else." He also added that "We understand that in the long run the fundamental asset is the installed base of people who are using our products. What you hope to do over time is convert them to licensing the software."
Traian Băsescu, the president of Romania, stated that "piracy helped the young generation discover computers. It set off the development of the IT industry in Romania."
Microsoft admits that piracy of its Windows operating system has helped give it huge market share (90%) in China that will boost its revenues when these users "go legit." Bill Gates said, "It's easier for our software to compete with Linux when there's piracy than when there's not."
Software piracy is illegal due to the supposed potential economic loss that it inflicts on the copyright owner. Software authors argue that even if it is assumed that only a portion of those infringing the author's copyright would ever have bought the software, the author would still suffer a theoretically economic loss as a result.
Software authors suggest that copyright infringement negatively affects the economy by decreasing the profits that allow for further development and growth within the software industry. The U.S. is the country most affected, as they provide about 80% of the world's software. Software counterfeiting is claimed to be a large problem by some, resulting in a (theoretically) revenue loss of US $11–12 billion, China and Vietnam being the biggest offenders.
It has been suggested that counterfeit software will decline so much as to be eliminated in the future, but there are measures being taken and rules being put into place to work towards this goal. "In the United States, for example, the level of piracy has been reduced from 48% in 1989 to 25% in 2002." Rise of quality in free alternative software also helps to lower the use of copied software worldwide. Illegally copying software is seen by some software producers as a "lesser evil" than actually buying or illegally copying a competitor's software. Jeff Raikes, a Microsoft executive, stated that "If they're going to pirate somebody, we want it to be us rather than somebody else." He also added that "We understand that in the long run the fundamental asset is the installed base of people who are using our products. What you hope to do over time is convert them to licensing the software."
Traian Băsescu, the president of Romania, stated that "piracy helped the young generation discover computers. It set off the development of the IT industry in Romania."
Microsoft admits that piracy of its Windows operating system has helped give it huge market share (90%) in China that will boost its revenues when these users "go legit." Bill Gates said, "It's easier for our software to compete with Linux when there's piracy than when there's not."
