Coalition for Networked Information
Information Policies: A Compilation of Position Statements, Principles,
Statutes, and Other Pertinent Statements
Software Publishers Association
1730 M Street, NW, Suite 700
Washington, DC 20036
202-452-1600
Source: Software Use and The Law, Software Publishers
Association, Washington, DC
Software Use and the Law: A Guide for Individuals, Educational Institutions,
User Groups and Corporations
Everyone benefits from a healthy computer software industry.
With each passing year, software evolves into a faster, more
sophisticated, versatile and easy-to-use technology. Business software
allows companies to save time, effort and money. Educational computer
programs teach basic skills and specific subjects. Home software now
includes a wide array of programs that enhance the user's productivity
and creativity. Computer graphics have turned PCs into a veritable
artist's palette, and new games are increasingly inventive. The
industry is thriving and users stand to benefit along with the
publishers.
Along the way, however, the problem of software theft has
developed and threatens to impede the development of new software
products. Romantically called "piracy," the unauthorized duplication
of software is a Federal offense that affects everyone: large and small
publishers and legitimate users. Even the users of unlawful copies
suffer from their own illegal actions. They receive no documentation, no
customer support and no information about product updates.
When a few people steal software, everyone loses.
This guide is intended to provide a basic understanding of the
issues involved in ethical software user. It will tell you what the laws
are, how to follow them and why you should adhere to them. We
encourage you to make and distribute copies of this brochure.
This guide is only one component of an ongoing effort by the
Software Publishers Association to increase awareness of software
crime. If you have any questions about the user of software or would
like additional copies of this pamphlet please call the Software
Publishers Association at 202-452-1600.
The Law
The copyright law is clear. The copyright holder is given
certain exclusive rights, including the rights to make and distribute
copies. Title 17 of the U.S. Code states that "it is illegal to make or
distribute copies of copyrighted material without authorization"
(Section 106). The only exception is the users' right to make a backup
copy for archival purposes (Section 117).
Software creates unique problems because it is so easy to
duplicate, and the copy is usually as good as the original. This fact,
however, does not legitimize piracy. The copyright law makes no
distinction between duplicating software for sale or for free
distribution. The law protects the exclusive rights of the copyright
holder and does not give users the right to copy software unless a
backup copy is not provided by the manufacturer. Unauthorized
duplication of software is a Federal crime. Penalties include fines of as
much as $100,000, and jail terms of up to five years. Although software
is a new medium of intellectual property, its protection is grounded in
the long-established rules that govern other more familiar media, such
as records, books and films.
Software piracy may hurt smaller software publishers more
than larger ones. The software industry is filled with new and
innovative developers that are trying to break into a crowded market.
They can only survive if their products are purchased. Each theft
makes staying in business that much harder.
Use of Software by Individuals
Individuals have a right to make a backup copy of software if
one is not provided by the manufacturer. It is illegal to make copies of
software for any other purchase. The law applies as equally to a $750
project management program as well as to a $15 game. Each product
reflects a substantial investment of time and money by many
individuals. Software development involves a team effort that blends
the creative talents of writers, programmers and graphic artists. Piracy
diminishes the value of a program and further, deprives the
developers of fair compensation.
Code Breakers
In an effort to control privacy, some software publishers use
technical means to copy protect their software. This prevents or
restricts the user's ability to make copies. These copy protection efforts
have been matched by the efforts of firms that manufacture products
(code breakers) that circumvent copy protection systems. The result is
like a technological arms race, with no winners.
SPA supports the right of all users to make or receive from the
publisher an archival copy of purchased software. We deplore,
however, the proliferation of code breakers for illegal use. When a
publisher provides a backup, or enables a user to make a backup, there
is no defensible use for a code breaker on that product. It is clear that
products that defeat publisher-encoded copy protection systems are
legal only if they are used to make backup copies. All other uses of
these products are illegal.
Because Congress did not envision the growth of this sub-
industry of code breakers, they are not mentioned in the Copyright Act.
There is no distinction in the law between copy protected and
unprotected software. The duplication of either is a violation of the
Copyright Act.
Use of Software by Schools
Educational institutions are not exempt from the copyright
laws. To the contrary, because of their unique position of influence,
schools must remain committed to upholding the copyright laws. Just as
it would be wrong to buy one textbook and photocopy it for use by other
students, it is wrong for a school t duplicate software without authority
from the manufacturer.
Some people claim that software publishers should allow
schools to copy programs because it is the only way some school systems
can afford to provide enough software for their students. We can
respond by pointing out that software is no different from any other
product or service required by a school. Schools purchase books, audio-
visual equipment and classroom furniture, and they pay a fair price for
them. Newer and better software can be developed only if the software
development team receives a fair price for its efforts.
Many software firms offer special sales arrangements to
schools. These include discounts for additional copies of programs,
reduced-price lab packs (a quantity of programs sold together) and site-
license agreements (an arrangement that allows a school to copy for a
specific location at a fixed price). Schools should make every effort to
uphold the law, because it is by their example that students will learn
respect for intellectual property.
User Groups
The personal computer industry owes much of its success to the
proliferation of user groups. These groups provide a valuable service as
forums for sharing computing experience and expertise. User groups
should, however, ensure that their meetings are not used to promote
illegal duplication of software.
The unauthorized duplication of software by user groups or at
user group meetings places many people in a vulnerable position. The
individuals who duplicate software, as well as the user group and the
owner of the meeting place may be held responsible as copyright
violators.
A close relationship between user groups and the software
publishing community is mutually beneficial. User groups should
encourage ethical software use among their members. Likewise,
software publisher associations can be instrumental in persuading their
members to respond to user requirements for proper support and updates.
Corporate Users
In the corporate workplace, "softlifting" is characterized by
two common incidents: extra copies of software are made for employees
to take home, and extra copies are made for the office. Both situations
mean a greater number of computers can run more copies of the software
that were originally purchased.
Unless a special arrangement has been made between the
corporate user and the publisher, the user should follow the one
software package/one computer rule. This means that an equivalent
number of software packages should be purchased for every piece of
hardware in use. By buying as many programs as it will need, a
company removes the incentive for employees to make unauthorized
copies. Adhering to this rule will pay off in the long run, because a firm
that illegally duplicates software exposes itself to tremendous
liability. Another option that has proven successful is for firms to enter
into special site-licensing purchase agreements with publishers. These
agreements compensate the publishers for the "lost sales" they might
have made on a piece-by-piece basis. At the same time, they eliminate
the possibility that copyright violations will occur.
Many software applications are sold in "Local Area Network"
(LAN) versions. If your company has a LAN, be sure to follow the
publisher's guidelines in the use of software on the LAN. It is a
violation of the copyright laws and most license agreements to place a
single-copy version on a LAN for simultaneous access to more than one
user.
Finally, it has been found that when companies sign a policy
statement stating their intention to ensure employee compliance with
copyright regulations, the chances of softlifting are reduced. A sample
corporate policy statement is included [on the back panel of this
brochure].
Reporting Copyright Violations
The SPA has established a special toll free number to receive
reports of copyright violations, 1-800-388-PIR8. The SPA has filed
many lawsuits against individuals and companies engaged in the
unauthorized duplication of PC software. Additional lawsuits may be
filed where appropriate.
Conclusion
Most people do not purposely break the law. They would never
consider stealing money from someone's pocket. But those who copy
software without authorization are stealing intellectual property and
they should understand the consequences of their actions.
If you are an individual user, don't break the law. Everyone
pays for your crime. If you are part of an organization, see to it that a
policy statement is signed and respected.
Sample Corporate Policy Statement
Company/Agency Policy Regarding the Use of Microcomputer Software
- (Company/Agency) licenses the use of computer software
from a variety of outside companies. (Company/Agency) does not own
this software or its related documentation and, unless authorized by
the software developer, does not have the right to reproduce it.
- With regard to use on local area networks or on multiple
machines, (Company/Agency) employees shall use the software only in
accordance with the license agreement.
- (Company/Agency) employees learning of any misuse of
software or related documentation within the company shall notify the
department manager or (Company's/Agency's) legal counsel.
- According to the U.S. Copyright Law, illegal reproduction of
software can be subject to civil damages of as much as $100,000, and
criminal penalties, including fines and imprisonment.
(Company/Agency) employees who make, acquire or use unauthorized
copies of computer software shall be disciplined as appropriate under
the circumstances. Such discipline may include termination.
(Company/Agency) does not condone the illegal duplication of
software.
I am fully aware of the software protection policies
(Company/Agency) and agree to uphold those policies.
______________________________________________________
Employee Signature and Date
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