Copyright Laws on the Illegal Use of Software
Copyright laws on the illegal use of software are covered under Section 117 of the Copyright Act. The law is intended to protect software organizations and developers from the unauthorized use of their software, including counterfeiting operations, unlicensed use and hard disk uploading. Enforcing software copyright laws is easier said than done. Many software businesses go under because of their inability to effectively exercise their rights as it relates to copyright laws and their software product.
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Significance
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Software companies and developers are in the business of creating software applications for personal, entertainment and business use. Business software programs are designed to assist companies in running their operations smoothly and efficiently. According to the Business Software Alliance, an estimated 40 percent of the software applications used by business organizations violate the copyright laws on the illegal use of software. This act is commonly known as "software piracy."
The typical software licensing contract has limitations as to the manner in which the software can be used. Usually, a company must purchase software licenses based on the number of computers where the application will be installed. Organizations in need of additional machines, uploaded with said software, are required by federal law to purchase the appropriate number of licenses from the software owner.
EULA
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The End User Licensing Agreement (EULA) is a contract between the software developer and the program purchaser. It is also known as a user license or software license. It spells out the terms and conditions of each party regarding the software application. The contract usually includes detail of the manner in which the software may or may not be used by the buyer. It also contains language on developer restrictions, such as distributing copies of the application to other parties.
Many purchasers agree to the stipulations of EULA by breaking open the software packaging or mailing back the contract. The most common acceptance of EULA occurs after the application is installed on the computer. The purchaser must agree to the user license in order to continue on and use the software. If he declines, he is denied access to the program.
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Exceptions
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Under specific circumstances under section 117 of the Copy Act, purchasers of software programs, or someone acting on their behalf, are permitted to create backup copies of applications. The following reasons are acceptable: (1) The duplicate is made strictly for the purpose of providing a backup. (2) The person is the rightful owner of the application. (3) The duplicate copy must be destroyed if the original is sold, given away or reassigned in some other manner.
Peer-to-Peer
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The popularity of peer-to-peer file sharing networks has made the copyright law on the illegal use of software a major topic of discussion. Despite the proliferation of this type of networking, anytime a copyrighted property is uploaded or downloaded without the consent of the copyright owner it is illegal. This violates federal law and the property owner's sole right to the distribution or reproduction or her product
Warnings
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There are severe criminal and civil fines and penalties for violating copyright laws on the illegal use of software. The duplication or distribution of pirated software is investigated by the FBI. Software owners may receive actual damages and up to triple damages and legal costs in a successful copyright infringement civil lawsuit. In addition, the owner may receive statutory damages of up to $100,000 for each software product, per infringement. The criminal penalty for copyright violation is a $250,000 fine and as many as five years in jail.
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