I can’t tell you how many times I’ve told friends, family, and professionals in the last two years about the dangers of piracy. The days of borrowing your friend’s copy of Window 98 are over. The days of installing a friend’s computer game on your PC and playing online are over. And most importantly, the days of downloading illegal hacks of software because you can’t afford the real program are over!
I’ve had friends recently who have called me with a triumphant note in their voice, saying to me "HA! I got a new working copy of Microsoft Vista!" (Or XP, or Office, or Photoshop, etc ad infinitum). I usually shake my head and warn them to be careful, only to be told "No man. It works fine. I got it to activate and everything!"
I’d like to take them all down to a local Greenville business and let them ask Ron Ayers how confident their IT staff felt about it when they got busted last week for running illegal copies of software and were forced to pay a $72,000 fine and then were forced to purchase legitimate copies of the software on top of that already huge bill from the piracy police!
The BSA (Business Software Alliance) published an article a few days back about the bust. The highlights are as follows:
The Business Software Alliance (BSA) today announced that Ron Ayers Motorsports (www.ronayers.com), a motor sports superstore and equipment supplier, headquartered in Greenville, NC, agreed to pay $72,053 to BSA to settle claims that it had unlicensed copies of Adobe and Microsoft software on its computers. In addition to the payment, the company agreed to delete all unlicensed copies of software installed on its computers, acquire any necessary replacement licenses and commit to implementing stronger software license management practices.
Thirty-five percent of the software installed in 2006 on PCs worldwide was installed without legal licenses, amounting to nearly $40 billion in global losses because of software piracy. An independent study shows that 21 percent of software in the United States is unlicensed.*
(For the full article, click here)
Let me see if I can explain some of how the new world of software programming works, using a few clearly identified ground rules for a baseline:
- YOU are not smarter than the entire engineering staff of Microsoft, Adobe, or whomever, regardless of what you think of your bittorrent skills.
- The Internet is a requirement for most people and most software in today’s digital world.
- Your hacked software IS going to eventually rat you out, even if your "friends" don’t,
Regardless of your love or disdain for Microsoft as a company, let’s agree that they have collectively created one of the most advanced pieces of software in the history of the world (The Windows Operating System). In recent years companies like Microsoft have been losing hundreds of millions of dollars annually due to people who are downloading pirated copies of their software. Doesn’t it follow that they would take every step they can in order to catch people who are installing illegal copies of their programs? It’s not like it amounts to five thousand dollars a year, in which case they would just likely not even notice, but when you put a dent of a few hundred million in someone’s pocket, they feel it!
How is this accomplished?
First and foremost, software piracy is reported through the Internet by your own computer reporting on you. Years back, Microsoft incorporated a program called WGA, which stands for Windows Genuine Validation. Microsoft got tired of getting screwed over by the general population of Internet users, so they instituted the WGA policy. Basically, before you can get any more updates beyond a certain date, you had to download the WGA application update first. This little program simply loads itself, checks to make sure the serial key you have on your computer matches the one you have registered on Microsoft’s web site, and checks to be sure that your key hasn’t been reported as stolen or pirated. In layman’s terms, it creates a unique fingerprint of you and passes that fingerprint off to the Microsoft database. Each and every time you come to get a new update for Windows, or try to download an office template for MS Word, or try to update your browser, your fingerprint is compared again.
Maybe you’re one of these people who have a new hacked copy and you can update just fine! That’s great! Awesome! Now you can go get updates to your system and no one will ever catch you!!! Yeah, not really… If you consider it like a fingerprint, it’s really an easy analogy to follow. Again, let me remind you Microsoft isn’t stupid.(Greedy, overzealous, self-righteous, monopolizing capitalists maybe… but never stupid.) When five thousand people show up to the same store (read as windows update web site) and all five thousand people try to use the same fingerprint, alarms start to go off. No one comes out to arrest you. No one screams FREEZE. Nothing happens that you are aware of. All right! You got away with it again!
What you aren’t aware of is that Microsoft puts your fingerprint in a database of "suspected fakes" and starts to track it. It’s really simple to do. Let’s assume that Microsoft (this works for Adobe too) releases a new patch on Tuesday. A normal user would login sometime that week through the Automatic Update feature, have their fingerprint scanned, and then be authorized to get the download. However, anytime the same download gets applied to the same fingerprint over five thousand times in the same week, something is wrong! (Remember, you got your hacked copy from a friend, co-worker, Internet site, etc. Now you ALL have the same fingerprint, but different IDs, so once ALL of you download the same patch, they know something is wrong.)
What happens in the real world when a crime is believed to be in progress? An investigation is started, much the same as in the digital world. Microsoft doesn’t have the time, patience, or the desire to track you down and come to your door; this is true. However don’t think for a moment that it can’t happen. Just like with a real-world investigation, the judge doesn’t do the leg work. He has cops, lawyers, bounty hunters, and others for that. Microsoft and these other companies who spend hundreds of millions making software do too!
There are companies out there who make a percentage of the profits for catching you running pirated software. Microsoft doesn’t chase you down themselves. They DO however pass over the information to one of these companies, and let them run with it. Let’s assume that your pirated software is Microsoft Windows, retailing for about $180.00. Five thousand people who have all stolen the same copy equates to about nine-hundred thousand dollars! (That’s almost a million dollars Microsoft lost JUST on the ONE pirated copy that got stolen from ECU a few years back! I worked for a computer IT company at the time and I literally had HUNDREDS of people come in with the same cd-key and try to tell me it was theirs they purchased but they lost their original disc!) Now, let’s assume I work for the BSA or other organization. I simply call Microsoft and say "Hey guys. I’ll make you a deal. I’ll go investigate and collect your money for you. In exchange I want 20% of whatever I can recover in fines. Deal? Cool!"
Now you have a private company (who is ALSO smarter than you) with a vested interest in tracking you down and carrying you to court for the fines you owe to Microsoft, Adobe, and others. In the end, what happens? Ask the guys at Ron Ayers what happens. Seventy-two thousand dollars later, with your name all over the paper, and after having to fire your entire IT staff, you STILL have to hire new employees, buy new software, and deal with annual audits for the rest of your life to make sure you haven’t done it again!
To those of you out there who are geeks: Don’t flame me with emails telling me I’m an idiot. I KNOW very well this isn’t the actual method instituted to track software piracy. I’m trying to make an analogy that my regular readers can understand, in simple terms, minus all the jargon.
How do you protect yourself against piracy?
Well, I’m not going to give away all my trade secrets for free. After all, I do run an IT company that needs to turn a profit. If you think you’re in danger of being caught for pirated software then you probably are. You can easily Google the word "Software auditing program" and try some programs for yourself. If you are a business owner out there, or work for a company you feel might get caught, I would be delighted to help you audit your software inventory. Does this mean I will call the police and tell them you’re running illegal software? No. I work for my client, which is you or your company. My job and my liability end with me reporting to you which programs are or are not compliant. It’s up to YOU to contact the proper people and purchase legitimate software.
What if I’m already running pirated software?
If you know already that you’re running illegal copies of software, you can purchase the legitimate copes for a discounted price and have your "keys" changed to reflect the new licenses, which will make you legitimate. Again, this is something you can try to do yourself, but I would definitely see about contracting someone who knows what they are doing before relying on it for your business. If you want professional assistance, check out the official work web site: www.twnetworx.com
If you find this article useful, please Digg it. If you have questions or comments or want to know more, leave a comment and I’ll answer it online.
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8 responses so far ↓
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I’ll agree with most of what you said although I’d like to take issue with your support of the nasty tactics of the B.S.A.. In most cases, its not about the piracy, its about quotas. For example, I’m an I.T. guy, I work with a small company in Kentucky. I, without knowledge of my employer, load a ton of stolen software on computers that the company owns. They fire me and I call the B.S.A. and turn them in. Now, not only am I never questioned and all the blame falls on the IT ignorant business owners but, I get a reward! A reward for loading software on company computers that my employer has no knowledge of. These are the types of people that the B.S.A. targets. The company, even if they have valid licenses can still be fined for the software if they misplace a reciept. You must have the reciept and license or the B.S.A. won’t accept the software as legal. I could take the case to court but theres no way my company of 20 people and an annual income of $140,000 can compete with the B.S.A. and their millions of dollars. Is this fair? Is this Justice? Not by any means. I agree whole heartedly that pirates should be brought to justice but, to punish the small business owner that doesn’t know a mouse from a monitor and put more money in the greedy corporations and lawyers pockets is not the way to do it. Perhaps a warning would be in order or a demand to purchase all licenses for the illegal software. I just don’t agree with your support of the targeting of disgruntled ex-employees or the punishment of small business to the advantage of big business.
Just an opinion…
I think I agree wholeheartedly with your points. I know of another company here in my town that years ago was targeted because they had 20+ machines all running the same copy of windows XP and Office XP.
I’m not sure if it was the BSA or not, but they were contacted and told they had 30 days to become compliant and that they would be audited at the end of those 30 days. Their options were to either purchase legit software or pay fines, etc.
So, they simply said “we’re sorry.. we didn’t know” and purchased 20+ licenses from Microsoft. When their audit came, then didn’t even have to change the keys to legitimate ones. They were just told to keep their licenses handy in case they were audited again and they were let go with a slap on the wrist.
Personally I think that should be the policy for most all companies, within reason of course, but especially for the first offense.
I agree that paying 72 thousand dollars because you mistakenly hired an incompitent IT manager it WAY harsh. I also think firing the IT guy should have counted for something in their favor, but that’s just me.
But my point is that most people A)Don’t know how to tell if their software is legit, and B) Don’t care because they assume they’ll never get caught. I fix 5 to 10 machines a day in our shop and about 20% of them are running hacked operating systems.
I warn them they’re eventually going to get caught and that we can get them legitimate for about $84.00 (which is almost half what Microsoft normally chareges for that) but they still insist on going their own way with their hacked OS and assuming they’ll never get caught. It’s a shame, but after awhile I think SOMEONE should be protecting the copyrights of companies who develop software.
There have always been a few keynote ideas I’ve had for programs that should be developed but I probably won’t ever even bother now. One of three things would happen.
1) It would be a flop and wouldn’t catch on.
2) I would have to spend 500% of the design cost trying to make it hack proof, which would eventually fail, and those costs would make it prohibitive to retail it to the shelf.
3) I would try my best to create a nice program people would use, but it would wind up on Bittorrent in 48 hours and I’d never make another dime for my efforts.
So, yeah, in part I think the uninformed consumer SHOULD be targeted with a certain amount of hostility. If you drive 55 in a neighborhood street, even if there are no posted speeding signs, you know you’ll get a ticket if you’re seen by a cop.
If you have an employee/friend who says “Sure, I can get you a free copy of XYZ program when you know damned well you’ve seen it for sale in a store, then you KNOW it’s hacked. I dunno. I guess I’ve just become more sensitive to the matter now that coypright law is being so abused in the US now because companies are trying everything they can to trademark, copyright, and lock-up everythign they can to try to retain profits. In the end, it’s the consumers who want everything for free that have driven them to it, and then those same consumers get pissed when the prices go up on DVDs, or on Movie Tickets, or on Software, etc. It’s all balled up into the same pile of crap and it needs to change.
PS: Thanks for leaving your opinion. I really appreciate the time when people post their thoughts, whether I’m in agreement with them or not.
I think that you are too full of yourself. And Microsoft only bust the people who are basically retarded. For Microsoft’s little trick to validate each time you can really run a patch to by pass it. Well if you really want to spend 100s of dollars because your a retard and a wimp, go right ahead.
Thanks for your opinions You’re an idiot. (Was that out loud?)
Should I say “Comments are welcome except by 15 year old hacker-wannabes who can’t afford to purchase their own software so instead have to steal someone elses?”
okay your opinion makes some sense but to me not many people get cought pirating and i think software should be a lot less than it cost i know maybe they put work into it but that dose not MAKE THERE SOFTWARE BETTER OR WORTH THAT MUCH i mean look at adobe software it cost so much 1000 here 2000 there come on. i think they should lower there software prices cuz the software is not worth that much and most people can’t aford it and any one with a brain can get it free
bravo my friend, totally agree
I think with opensource, freeware nowadays people can survive to do their computing needs without doing piracy.
Not to mention Linux, even with Windows alone as the original software people can still happy with their computers.
Also illegal software sometimes might even have trojan/worm/virus so please stop using pirated software for your own sake.