Click It and Ticket

1. Click It and Ticket Analysis of software piracy and circumstances for the justification of illegitimate acquisition. Lynsey Schroeder 002815-013 May 2011

2. Software Piracy in China • 20 million copies of Windows Vista were legally sold globally within the first month. • Only 244 copies were sold in China. • Piracy is rampant. • 79% piracy rate in 2009 • Valued at $7.6 billion. • 15% of the total value of pirated software of the 111 nations studied. • Accepted by the general public. • Still illegal, but society believes it to be okay.

3. Under what circumstances can acquisition by illegitimate means be justified? Software Piracy: Human Sciences (Economics) Natural Sciences (Technology) Ethics

4. Economics To what extent does software piracy affect the economy? What role does software piracy play in the revenue of businesses?

5. Economics Those Opposing Software Piracy • Perception • Perceive the economy to be negatively impacted. • Perceive businesses to lose money on pirated software. • Perceive the value of software to be depreciated as a result. • Beliefs associated with these • If something is not paid for, money is lost. • If one is not rewarded for their work, their work has no value. perceptions.

6. Economics Those Opposing Software Piracy • Reason • “2009 Global Software Piracy Study” • Conducted by the Business Software Alliance • Value of unlicensed software is $51.4 billion. • Believed to create losses reaching $110 billion in revenue, taxes, and employment. • Estimated benefits of reduction: • 10% reduction would create $142 billion of new activity in the economy. • $116 billion affects local economies rather than national corporations. • 500,000 new jobs would be created in technical fields.

7. Economics Those Supporting Software Piracy • Emotion • Feel that software costs too much, and is not worth the price. • Perception • Perceive no money to be lost. • Many would not pay for it if they could not get it for free. • There is a one-time production cost, and thus if one copy is sold the company has already made a profit. • Because of this, no money is really lost. • Profits are simply not as high as they could be.

8. Economics “It's easier for our software to compete with Linux when there's piracy than when there's not… ...we want them to steal ours. They'll get sort of addicted, and then we'll somehow figure out how to collect sometime in the next decade.” – Bill Gates on piracy in China Those Supporting Software Piracy • Reason • Because software is a relatively new enterprise, prices are still somewhat experimental. • Money is not taken out of the economy, it is simply spent on other things. • Companies benefit from piracy. • Pirates find brands that they like for free, and are more likely to stick with that brand in the future • Microsoft believes China to soon be its largest market yet.

9. Economics To what extent does software piracy affect the economy? What role does software piracy play in the revenue of businesses? Those Opposing Software Piracy • Based on perception and reason. • Believe that the economy would improve without software piracy. Those Supporting Software Piracy • Based on emotion, perception, and reason. • Believe that the economy is not negatively affected, nor is it positively affected.

10. Economics Under what circumstances can acquisition by illegitimate means be justified? • Software piracy may be justified: • If the company producing the software does not lose money. • If the company producing the software gains brand-awareness. • If there is no negative impact on the economy as a result.

11. Technology To what extent does the digital medium affect the consequences of pirating? In what ways does the digital format allow pirating?

12. Technology Those Supporting Software Piracy • Emotion • Feel that it is easier and more convenient than purchasing the software. • Want to find the easiest way. • File sharing programs have made pirating software easier than ever. • Perception • Perceive pirated software to be trustworthy. • Perceive pirating to be a victimless crime. • Software is infinitely available. • The company loses nothing when it is copied.

13. Technology Those Supporting Software Piracy • Reason • Software can be copied infinitely. • This allows distribution of pirated software at no cost to the pirate or company that produced it. • Software can be shared instantly using programs such as Limewire or Bittorrent. • This allows mass distribution of pirated software. • Most pirated software is not malicious. • Virus scans and trustworthy sources can allow harmful consequences to be disregarded. • Most software pirates are not caught • Pirated software is difficult to track.

14. Technology Those Opposing Software Piracy • Reason • Pirated software often contains viruses or malware that can harm one’s computer. • Pirated software does not always work as intended. • When this is the case it is not more convenient to pirate.

15. Technology To what extent does digital format affect the consequences of pirating? In what ways does digital format allow pirating? Those Supporting Software Piracy • Based on emotion, perception, and reason. • Believe that the medium makes software piracy easier than legal purchase. Those Opposing Software Piracy • Based on reason alone. • Believe that the medium has inherent consequences, such as viruses.

16. Technology Under what circumstances can acquisition by illegitimate means be justified? • Software piracy may be justified: • If the medium allows software to be copied at no harm to the company which has produced it. • If the medium allows for ease and convenience without consequence. • If the source is trustworthy and the software is not harmful in any way.

17. Ethics To what extent could software pirating be called stealing? To what extent does software pirating infringe on Intellectual Property Rights?

18. Ethics Those Opposing Software Piracy • Emotion • Feel as though Intellectual Property Rights are violated by software piracy. • The creator is not given credit or compensation for their work. • Feel as though it is unethical to take something without paying for it, regardless of its availability. • It is unacceptable to take a coat from a store without paying for it. • Why is it okay to take software?

19. Ethics Those Opposing Software Piracy • Perception • Software piracy is perceived as stealing. • One is taking it without paying for it. • This is against one of the Judeo-Christian Ten Commandments. • Stealing is illegal and unacceptable in most societies. • Reason • Software piracy is illegal in most countries throughout the world. • It is unethical to break the law.

20. Ethics Those Supporting Software Piracy • Emotion • Feel as though there is no victim. • The software is duplicated rather than taken. • The company loses no money to produce the software, because this is a one time cost. • Feel as though Intellectual Property Rights are not violated. • The pirate is not claiming ownership, they are simply taking and using the product. • Feel as though they may purchase the software in the future. • Some will purchase software that they learn to like from pirating.

21. Ethics Those Supporting Software Piracy • Perception • Not perceived as stealing. • Stealing would be taking an item, whereas pirating is making a copy. • Perception that he or she will not be caught. • Belief that pirated software is near impossible to track. • “It’s only illegal if you get caught.” • Reason • No product is taken or lost through software piracy. • Not the same as shoplifting a coat.

22. Ethics To what extent could software pirating be called stealing? To what extent does software pirating infringe on Intellectual Property Rights? Those Opposing Software Piracy • Based on emotion, perception, and reason. • Believe that pirating is the same as stealing because the pirate is taking something without paying for it, which is unethical. Those Supporting Software Piracy • Based on emotion, perception, and reason. • Believe that pirated software is not stolen because it is duplicated, and is therefore ethical because nobody is harmed.

23. Ethics Under what circumstances can acquisition by illegitimate means be justified? • Software piracy may be justified: • If no party is harmed by the duplication of software. • If Intellectual Property Rights are not infringed. • If it is ethical and/or acceptable to break the law.

24. Conclusion Under what circumstances can acquisition by illegitimate means be justified? Justified if acquisition presents no harm to either party in terms of financial loss, infringement of rights, etc., and if it may benefit the creator in the future. Duplication presents no financial loss to the creator. Brand-awareness is raised and therefore the creator benefits. The creator may be further benefitted in the future. Intellectual Property Rights are not infringed. There are no dangerous consequences, such as viruses.

25. Bibliography Agarwal, Amit. "We Love Microsoft Software Piracy in China: Bill Gates." Web log post. Digital Inspiration. 23 July 2007. Web. 11 Nov. 2010. <http://labnol.blogspot.com/2007/07/we-love-microsoft-software-piracy-in.html>. Anderson, Chris. Free: The Future of a Radical Price. New York: Hyperion, 2009. iBooks. BSA, and IDC. The Economic Benefits of Reducing Software Piracy. Rep. Business Software Alliance, 2010. Web. 11 Nov. 2010. <http://portal.bsa.org/piracyimpact2010/inbriefs/inbrief_english.pdf>. Kirkpatrick, David. "How Microsoft Conquered China." Fortune. CNN, 17 July 2007. Web. 11 Nov. 2010. <http://money.cnn.com/magazines/fortune/fortune_archive/2007/07/23/100134488/>.