Software piracy is a term that refers to the illegal copying and/or selling of software.  Like books, music and movies, computer software is considered intellectual property and is protected under the copyright laws of most countries.  Softlifting, OEM-unbundling, and counterfeiting are just a few of the several ways that software piracy can be effected.

Most of us have probably benefited from a CD burned from a friend’s iTunes playlist.  Like music piracy, softlifting is simply sharing computer software with friends, family or colleagues.  It seems harmless, but is no less illegal.  It is doubtful whether any of the average cases of softlifting have been prosecuted, but a company who buys software intended for one to three computers and installs it on 100 may be subject to some stiff penalties for pirating software.

OEM-unbundling is another type of software piracy.  OEM stands for “original equipment manufacturer”.  One example of OEM-bundling is when a computer comes with Microsoft Office already installed or in a separate package in the box.  If the retailer or end user tries to sell or distribute the software separately, he would be guilty of software piracy.

Though plenty of folks have at least thought about installing their roommate’s software onto their own laptop, there is a flip side to software piracy.  The consumer may become the victim when he unwittingly purchases counterfeit software.  Perhaps paying as much, or nearly as much, for the counterfeit software as he would have for the real thing, the consumer may find viruses or bugs in his new software that may cause his entire system to crash.  Not only that, he will be ineligible for any support, upgrades or training from the original manufacturer.

In an effort to protect consumers and themselves from the negative effects of software piracy, many software companies attempt to educate consumers to look for a Certificate of Authenticity – or COD – on any software they may be about to purchase.  The COD amounts to a sticker on the box, pictures of which can be found on the Internet.  Other deterrents to software piracy are jail time for convicted pirates or stiff fines for each instance of piracy up to a maximum of $150,000 per instance in the United States.