Aftermarket Insider Issue 82 - (Page 15)
safet y for soft ware
iNSiDE tEcHNologY
Understanding the Cost of Software
Piracy in the Aftermarket
Software piracy in the
aftermarket is growing in scale, and
affecting everyone in higher costs
of doing business and higher prices
for customers. One common form of
piracy is the unauthorized copying
or use of software that exceeds the
scope of an authorized license. AAIA
is taking a leadership role in the
issue of software piracy, and seeks
to provide education and awareness
as the first line of defense in this
battle against waste and fraud.
In recent decades, the aftermarket
has come to rely on the innovation
and creativity of software companies
to drive productivity and efficiency
in businesses throughout the supply
chain. But software piracy deprives
software and data providers of tens
of millions of dollars in revenue
annually and drives up the cost of
software for authorized users and
licensees. The most common form
of piracy is shared log-in credentials
and product duplication. The fastest
growing threat is in commercial piracy,
which includes cracking security
measures on media-based product and
repurposing disc-based products for
commercial web sites at little or no
cost. One maker of CD_ROM repair
information installed a line of code
that required the disc to “call home.”
They identified 14,000 illegal copies in
109 countries in less than six months.
Software makers aren’t the only ones
harmed by piracy. Anyone using
unauthorized software or data is
obviously not covered by any warranty
protection, ineligible for updates
and bug fixes and has no access
to customer support or technical
documentation. More onerous are the
legal consequences of using pirated or
unauthorized software. Software piracy
is punishable in criminal proceedings
with fines of up to $250,000
and jail time of up to five years.
Businesses prosecuted for software
piracy also risk the loss of business
resulting from negative publicity.
The most common form
of piracy is shared log-in
credentials and product
duplication.
Software companies in the aftermarket
are preparing to take more aggressive
measures in protecting their intellectual
property. Countermeasures may include
software cookies, security challenge
questions and periodic forced password
changes. But there are steps that every
business can take to ensure they are not
in violation of any software licenses.
1. Review the software license and
terms of use for all software and
data products in your business.
If the deal you got was “too
good to be true,” you may be
dealing with pirated software.
2. Audit the security credentials
of your authorized users. If
you paid for three users and
everyone in your shop is using the
software, chances are you are in
violation of the agreement and
subject to legal consequences.
3. Make sure anyone trying to sell
you a software or data product
is an authorized distributor or
representative of the company.
You are the best defense against
piracy and unauthorized copying.
The cost of software is higher than
it needs to be because of software
piracy and the expense of combatting
it. Increased awareness and education
about the cause and the consequences
are the first steps the industry
can take in reducing this wasteful
expense. Software companies have
tolerated enough piracy and will act
aggressively to protect their IP. AAIA
will continue to lead this discussion
to reduce piracy and reduce the
costs. To comment on this initiative,
e-mail piracy@aftermarket.org.
AFTERMARKET INSIDER | VOLUME 82 | 15
Table of Contents for the Digital Edition of Aftermarket Insider Issue 82
Aftermarket Insider Issue 82
Contents
President’s Message
Segment News
Essential Information
Company Profile
Government Affairs
Member Profile
Toolbox
Inside Technology
Software Piracy in the Aftermarket
Head of the Class
Market Intelligence
Aftermarket Insider Issue 82
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