pirates

After the announcement that the newly formed Pilipinas Anti-Piracy will start their crackdown on users of pirated software on September 16, I have been receiving calls and emails asking me the details of the said campaign. Questions like how can they legalize their softwares, what softwares are included, how much does it cost, and if it is possible to extend the deadline.

The Pilipinas Anti-Piracy Team was formed to reduce software piracy in the country. Optical Media Board (OMB) Chairman Edu Manzano reminded companies to stop patronizing pirated software and make sure that all software programs they are using in their business are legal because using pirated software in their offices is against the law and they can be made to pay heavy fines and imprisonment for up to Nine (9) years. The team is composed of the National Bureau of Investigation (NBI), Optical Media Board (OMB), Philippine National Police (PNP), the IP Coalition and the Business Software Alliance (BSA).

To answer the question what softwares are included in the crackdown, I believed all the products of the BSA member companies are part of the campaign. They are Adobe, Apple, Autodesk, Avid, Bentley Systems, Borland, Cadence Design Systems, Cisco Systems, CNC Software/Mastercam, Dell, Entrust, HP, IBM, Intel, Internet Security Systems, Macromedia, McAfee, Microsoft, RSA Security, SolidWorks, Sybase, Symantec, UGS and VERITAS Software. So if you’re using any of these products, better legalize it as soon as possible.

According to the official website of BSA (www.bsa.org), there are Five (5) types of piracy:

End User Piracy occurs when a company employee reproduces copies of software without authorization. This includes using one licensed copy to install a program on multiple computers; Copying disks for installation and distribution; Taking advantage of upgrade offers without having a legal copy of the version to be upgraded; Acquiring academic or other restricted or non-retail software without a license for commercial use; and Swapping disks in or outside the workplace.

Client-Server Overuse occurs when too many employees on a network are using a central copy of a program at the same time. If you have a local-area network and install programs on the server for several people to use, you have to be sure your license entitles you to do so. If you have more users than allowed by the license, that’s overuse.

Internet Piracy is when software is downloaded from the Internet. The same purchasing rules should apply to online software purchase as for those bought in traditional ways. This includes pirate websites that make software available for free download or in exchange for uploaded programs; Internet auction sites that offer counterfeit, out-of-channel, infringing copyright software; and Peer-to-Peer networks that enable unauthorized transfer of copyrighted programs.

Hard-Disk Loading occurs when a business who sells new computers loads illegal copies of software onto the hard disks to make the purchase of the machines more attractive. The same concerns and issues apply to Value Added Resellers (VAR) that sell or install new software onto computers in the workplace.

Software 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 is common to find counterfeit copies of the CDs or diskettes incorporating the software programs, as well as related packaging, manuals, license agreements, labels, registration cards and security features.

Types of Licenses:

“Concurrent use licenses” limit the number of simultaneous users. The limit may be set at less than the number of active terminals, and software may require a logging-in process to control the maximum number of users. This type of license is often referred to as a “floating network license” to describe the fact that, though the number of users is fixed, usage may float among the terminals.

“Per Seat License” extends to the dedicated machine, user or use while a “per server” license applies to the network server. The price for a per server license usually will be based on an estimate of users dedicated to a specific server.

“Site License” extends to users at one particular site and often includes a quantity discount, the right for users to make copies and a cap on the licensee’s ability to make unauthorized copies. In order to ensure that the license terms are not overextended, the vendor may elect to impose controls such as: (1) requiring all documentation to be ordered directly from the vendor; (2) attaching an identification number on each copy which in turn may be attached to each user; and (3) requiring regular reports and audits to ensure compliance.

“Enterprise License” is extended to all sites within a particular company. Pricing may be determined by the number of servers, frequency of use or number of concurrent users. A licensee pays the vendor periodically for an enterprise system as opposed to a single payment. Periodic maintenance and support may be built into the license.

“Shrink-wrap License” refers to retail software packages that are covered in plastic or cellophane shrink-wrap. License agreements included with software become effective once the customer tears the wrapping off the package. Shrink-wrap licenses describe packaged software while click-wrap licenses describe Internet licensing transactions. Click-wrap may also apply when you install the program.

Where can you get licensed software:

- At retail locations where the software is traditionally offered in stand-alone packaging;
- From the Internet where software may be downloaded directly from the publisher or third party electronic vendor;
- By purchasing a PC with pre-installed software from an Original Equipment Manufacturer (OEM);
- From an Application Service Provider (ASP) by paying a monthly fee, thus acquiring the right to use the software.

Next week I will give you some tips on how to conduct a software audit and how to achieve an effective software management. For now, the most important thing for you to do is to contact your software vendor and have your softwares licensed.