Software Piracy Sails Despite Rough Seas Ahead

Software piracy is costing the animation industry millions if not billions. Brett Rogers explains why the cost of software piracy goes beyond the losses suffered by the software manufacturers and affects everyone.
Posted In | Magazines: AnimationWorld, VFXWorld

Editor's Note: Recently Claudio Mattei, managing director of Digital Video, alerted Animation World Network of a very serious problem facing many animation software and production companies — the issue of software piracy. Fed by his passion for the subject, AWN decided to investigate a little further. Read his shocking letter to the editor now.

Your company needs software, but times are tough. In search of a bargain, you run a quick search online and find a sealed copy of Macromedia Studio MX, an $800 package of software, selling for $200. A few more clicks and Electric Image's $995 Universe 4 software is yours for $350. Too good to be true? It's all happening on a popular online auction site.

How can software sell for such bargain basement prices? It's simple. A high percentage of software for sale on auction sites is pirated. Some of the operators are sophisticated businesses that sell painstakingly forged software packages. Others are small outfits selling garbage bootleg copies that don't work at all. They've long been a thorn in the side of software giants like Microsoft, but increasingly pirates are harming smaller companies that create software for specialized fields like animation.

Victimizing Developers
When you buy software, you are almost always buying a license to use the software, not the copyright itself. Usually this means you can install the software on one computer and create a backup copy. Any further installations, copying, swapping or distribution of the software is a violation of federal copyright law.

Are a few extra installations of software on your animation company's computers really such a big deal? It's not a victimless crime. The intellectual and creative cost of developing software is extremely high. Programmers, writers, graphic artists and a host of other talent work as a team to create software, and just like a work of art, writing or music, software is protected. By denying software publishers their rightful income, you cost legitimate consumers money and take funding away from the development of better versions of software and more powerful software tools.

"Software theft is a major problem not only for our company but for everyone, since it affects jobs, wages, tax revenues and funds available for research and development," explains Sandra Boulton, director of Autodesk's anti-theft department, in a release that followed a six-figure piracy settlement with a customer who had installed software without the proper licenses.








Comments


thanks for sharing a good information.

PHP Development (not verified) | Fri, 05/06/2011 - 02:47 | Permalink

It is interesting to read the article which is actually over 7 years old. I mean it is a little bit strange because 7 years is not a small period of time. But this problem is more actual today then in 2002.. Software piracy is 10 or 100 times bigger now. You can find almost every software for absolutely free in the internet. If Macromedia products cost 800$, you can find them for 0$ and that's all. The biggest problem is that you can't stop that. It would be too hard to stop piracy in the internet. I think we can't do anything about it. Of course few people are getting fines for that, but only few from a billion. It doesn't solve the problem. Thanks for the great article, I will be looking for other great ones from you. Sincerely, Kevin Tamerson from software application development

KevinT | Sat, 11/07/2009 - 06:20 | Permalink

GROUPAMA (a large French insurer) was caught in a $200m PIRACY case where it used "bank secrecy" to ask Police not to investigate its computers...

The fun part of the story is that the (Paris) General Prosecuter found no infraction in this (illegal) agreement!

See the whole story on:

http://remoteanything.com/archives/groupama.pdf

Anonymous (not verified) | Mon, 10/19/2009 - 09:06 | Permalink
All those numbers about how much are software companies and other companies are losing are abstract i see the numbers, but i like to know how are they losing it, everybody is trying to fight software piracy sueing everybody that has a pirated copy. Death the dog the rabies is gone, all the evils have to be fight in clever ways, watching causes of the evil, piracy exists and its very popular due to the fact that software is very expensive, i know creating software costs a lot of money, but everyone is trying to be rich fast. If someone has a post production house, you have to invest a lot of money, buy a license for every computer you have, suppose Maya at least $2000 per workstation, or XSI at least $7000 per workstation, plus OS, plus a very good Hardware to be efficient you can spend a lot of money per workstation, plus the general mainteinance of the installations, so you cant start easily, you have to have a lot of money, even tough youre good at work. So what is the solution? difficult one, i think if software companies would drop prices, maybe they get more money because of selling more copies. and again to the companies losing money, i think, from my use of logic, they dont lose that amount of money, if there were no piracy, people that use pirated software still wouldnt buy software because theres no money to buy it, and that scenarios represents most of the people. So what is going to be, the winners of production houses will be the ones that have more money and buy more licenses, but lack of talent, or the ones that has a lot of talent and no money to buy software... To fight evil, you have to look both sides... just my humble opinion
Carlos Perez (not verified) | Sun, 01/26/2003 - 01:00 | Permalink
As a programmer who has had his work stolen, I sympathize with the software industry. Right now, a handful of people are making their livings selling software that I wrote. I ran into this article while researching options to simply get them to pay me a few months wages. Because I can't afford a lawyer, they've been thumbing their noses at me for years. By paying top dollar for the tools I NEED, I know that the providers will be able to improve and keep those tools up to date. For things I can live without, open source tools are out there, and getting better all the time. I would rather treat the world the way I would ask to be treated.
Charles Cunningham (not verified) | Tue, 10/29/2002 - 01:00 | Permalink
If i cant afford the software, I borrow it, plain and simple. As for small companies installing multiple copies for their employees, these business are just following the cutthroat necessity that IS business. Widely used software (the stuff that actually amounts to the millions your talking about) is all from Big Business. These Large corporations are usually run by those with the sole intent to channel consumption into a monopoly, creating one magical product everyone uses, forever. Invariably this destroys the options of the consumer, especially as the bureaucracy involved in development trickles into lines of code manifesting sloppy product without much inovation. These myopic goals of the executives are no more pungent then the imaginary losses caused by software piracy.
None Given (not verified) | Mon, 09/09/2002 - 00:00 | Permalink
"Legitimate software publishers lost $10.97 billion due to piracy. " No they didn't. As a pirate of the first order, I'd be the first to tell you that if I had to pay for the oh, $30-$40,000 dollars worth of software I use, I would use other software... This is why piracy is tolerated, especially from Micro$oft. You think that I (and millions of other people) wouldn't ditch Windows for Linux if Windows suddenly became unpirateable. Hell, If I could find linux/unix copies of the software I do use, I'd change right now. Strength of a software or OS depends on how many are using it more than how many copies it sells. If everybody is using windows, everyone makes software to work on it. Even if it isn't the fastest or most stable platform it wins because everyone ends up using it so they can get software that works. Even if half the copies are pirated, it doesn't matter because there are enough professionals and corporations who have to buy legit copies to keep them on top. It stinks, but I didn't make the rules. Bring the prices down to something approaching common sense and I'll start buying software again. I don't see that happening in the near future though, so I will continue to pirate my software.
anonymous pirate (not verified) | Sun, 09/01/2002 - 00:00 | Permalink
An Animating Subject, I believe that the problem we have is that somehow, art and non-tangible work used to be a social, communal donation to the collective humanscape before we found a way of paying people for this work. Not too long ago, artists and actors were not wealthy people, but now an artist can copyright a joke; art, phrase and font. Actors and movie houses are part of the Fortune 500 lists at any time. In our world of true disparity between the "have's" and "have not's", true talent can remain obscured because the have's can creat work using tools purchased with dollars while exibiting very little talent. This is obvious in the movies and especially in music. The triumph of "The Matrix" EFXs over, say, "Phantom Menace" is a clear example of real talent and average tools overcoming etc. Thus our problem, the "have's" have set standards for those of us pursuing recognition of talent. The "landscape" favors the "have's", therefore the richly talented, poorly equipped use whatever means to get to the standards. I am not advocating for commercial piracy, but if the software makers could follow Alias/Wavefront's initiative of producing "Maya Personal (Learning) Edition" which can be submitted to Student/Designer awards and are accepted, then we are halfway there. Please note the price war that has developed between the big 5 3d software makers and the price slashing. Is it that they are now selling the software at what it actually costs and we were being overcharged, or has the software recovered its R&D costs and is currently selling at its base rate?
Afro Wave (not verified) | Sun, 09/01/2002 - 00:00 | Permalink
This is silly, a "story" about the hardships of piracy with all the hard facts pointing to other countries as the source of the problem. Outragous software prices, crazy license terms and constant "new versions" that are just bug-fixes and the indusrty is shocked that people steal the software. People in these dirt-poor countries can barely afford an outdated computer, let alone the insane price of software. Even with the "Global Economic downturn" and the higher availabilty of means to pirate software, piracy has gone down or stayed the same world wide (according to the chart). Software compainies would double their income if they would find a price that consumers were willing to pay, in the meantime: "Viva Open Source!"
forcefield (not verified) | Fri, 08/30/2002 - 00:00 | Permalink
Yes, all you about piracy say is true, but remember, without software piracy there will be no animation industry! Up and comming designers/animators (the future in industry) cannot independantly afford these outragously expensive costs. Please know that the most cutting edge work comes from our basements!
Nix (not verified) | Fri, 08/30/2002 - 00:00 | Permalink

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.
  • Use <!--pagebreak--> to create page breaks.

More information about formatting options

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.