SOFTWARE PIRACY AND THE LAWƒ WHAT IS THE LAW? In 1964 the United States Copyright Office began to register software as a form of literary expression. the Copyright Act was amended in 1980 to explicitly include computer programs. Today, according to Title 17 of the United States Code, it is illegal to make or distribute copies of copyrighted material without authorization. The only exception is the user's right to make a single backup copy for archival purposes. In 1990 Congress approved the Software Rental Amendments Act which prohibits the trial rental, leasing, or lending of software without the express written permission of the copyright holder. Individuals may possess one copy of the software for personal use and one backup copy of software. No other copies may be made without specific authorization from the copyright owner. In late 1992, Congress passed an amendment to Title 18, United States Code, instituting criminal penalties for copyright infringement of software. The penalties include imprisonment of up to five years, fines up to $250,000, or both, for the unauthorized reproduction or distribution of 10 or more copies of software with a total retail value exceeding $2500. WHAT ARE THE PENALTIES? United States law prohibits duplicating software for profit, making multiple copies for use by different users within an organization, and giving an unauthorized copy to another individual. If caught with pirated software, you or your company may be tried under both civil and criminal law. A civil action may be instituted for injunction, actual damages (including infringer's profits), or statutory damages up to $100,000 per infringement. Criminal penalties for copyright infringement include fines up to $250,000 and jail terms up to five years, or both. WHAT ARE YOUR RESPONSIBILITIES AS A USER? Your first responsibility as a software user is to purchase original programs only for your use. If you purchase software for business use, every computer at your place of business must have its own set of original software and accompanying manuals. It is illegal to purchase a single set of original software to load onto more than one computer or to lend, copy or distribute software for any reason without the prior written consent of the software manufacturer. When purchasing software, make sure to buy only legitimate products. Many counterfeit packaged products are designed to look identical to original manufacturer's products, but are inferior in quality. Software publishers continue to work hard to make new products difficult to counterfeit. Purchasers and users of counterfeit or copied software face unnecessary risks: Viruses, corrupt disks, or otherwise defective software; Inadequate documentation; Lack of technical product support available to registered users; and Lack of software upgrades offered to registered user. In addition, if you purchase or use software that is counterfeit or copied, you not only deny the software developer its rightful revenue, you harm the industry as a whole. All software developers, both big and small, spend literally years developing software for public use. A portion of every dollar spent in purchasing original software is funneled back into research and development so that better, more advanced software can be produced. When you purchase counterfeit software, your money goes directly into the pockets of software pirates. The company that developed it never sees a dime. ESTIMATED LEVEL OF SOFTWARE PIRACY IN THE UNITED STATES: In 1990 worldwide illegal copying cost legitimate software developers more than $12 billion annually, with a loss of $2.4 billion in the U.S. alone. Approximately 40 percent of the business software in the U.S. is obtained illegally. GOVERNMENT COMMITMENT TO LAW ENFORCEMENT: The United States Government has been an active participant in protecting the rights of copyright owners. When the Business Software Alliance (BSA) conducts a raid, Federal Marshals or local law enforcement officers also participate. Federal Judges have shown their intolerance of copyright violators by handing down increasingly large damage awards against infringers. U.S. ANTIŠPIRACY RESOURCES: If you know of software piracy or outlets where counterfeit products are sold, call the BSA Anti-Piracy Hotline at (800) 688- BSA1 (2721) to report your concerns. If you would like more information about software piracy in the United States, please contact the BSA at 1201 Pennsylvania Ave., NW, Washington, D.C. 20004, Tel: (202) 737Š7060; Fax: (202) 737-7063. THINKING OF COPYING? THING AGAIN CALL THE BUSINESS SOFTWARE ALLIANCEƒ ANTI-PIRACY HOTLINE AT 800-688-BSA1 (2721) created and funded by Microsoft Corporation on behalf of the BSA.