Source : Free On-Line Dictionary of Computing

software theft
     
         The unauthorised duplication and/or use of computer
        {software}.  This usually means unauthorised copying, either
        by individuals for use by themselves or their friends or, less
        commonly, by companies who then sell the illegal copies to
        users.  Many kinds of {software protection} have been invented
        to try to reduce software theft but, with sufficient effort it
        is always possible to bypass or "crack" the protection, and
        {software protection} is often annoying for legitimate users.
     
        Software theft was estimated for 1994 to have cost $15 billion
        in worldwide lost revenues to software publishers.  It is a
        serious offence under the Copyright, Designs and Patents Act
        1988, which states that "The owner of the copyright has the
        exclusive right to copy the work.".
     
        It is estimated that European software houses alone lose $6
        billion per year through the unlawful copying and distribution
        of software, with much of this loss being through business
        users rather than "basement hackers".  One Italian pirating
        operation employed over 100 staff and had a turnover of $10m.
     
        It is illegal to: 1. Copy or distribute software or its
        documentation without the permission or licence of the
        copyright owner.  2. Run purchased software on two or more
        computers simultaneously unless the licence specifically
        allows it.  3. Knowingly or unknowingly allow, encourage or
        pressure employees to make or use illegal copies sources
        within the organisation.  4. Infringe laws against
        unauthorised software copying because a superior, colleague or
        friend compels or requests it.  5. Loan software in order that
        a copy be made of it.
     
        When software is upgraded it is generally the case that the
        licence accompanying the new version revokes the old version.
        This means that it is illegal to run both the old and new
        versions as only the new version is licensed.
     
        Both individuals and companies may be convicted of piracy
        offences.  Officers of a company are also liable to conviction
        if the offences were carried out by the company with their
        consent.  On conviction, the guilty party can face
        imprisonment for up to two years (five in USA), an unlimited
        fine or both as well as being sued for copyright infringement
        (with no limit) by the copyright owner.
     
        Some people mistakenly think that, because it is so easy to
        make illegal copies of software, that it is less wrong than,
        say, stealing it from a shop.  In fact, both actions deprive
        software producers of the income they need to continue their
        business and develop their products.
     
        Software theft should be reported to the {Federation Against
        Software Theft} (FAST).
     
        See also {Business Software Alliance}, {software audit},
        {software law}.
     
        (2003-06-17)