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Although software piracy has continued to
be a major problem for the high-tech industry, many
software users are unaware of its implications—for
both themselves and the companies that sell software.
Macromedia actively pursues the problem of software
piracy on several fronts.
The Anti-Piracy Program has a dual aim. Certainly,
we wish to drive revenue to Macromedia—after
all, we can't develop great products if no one pays
for them. But we are also here to maximize customer
value for our legal users. Most of you are involved
in development or programming with our products. What
you may not realize is that a lot of your competition
is not playing by the rules. This is where we can
help. If you know of a case involving piracy of any
type, we can help level the playing field for you.
Macromedia has a general piracy reporting
form where you can report piracy anonymously—but
I also welcome direct calls or e-mail from our customers
and partners worldwide.
Software piracy is a staggering problem for Macromedia.
With over 50 percent of our product installs worldwide being
pirated, the loss is measured in the hundreds of millions
of dollars. Software piracy comes in three basic forms:
Channel Piracy, Internet Piracy/Contributory Infringement,
and End-User Piracy, each with their own set of challenges
and opportunities.
Channel Piracy occurs when software pirates make
and sell their own illegal copies of software. This
is common in the retail space in several overseas
markets, but is also a serious problem in the US,
where pirates have taken their trade to auction sites
such as eBay. A recent Macromedia survey indicates
that over 90 percent of the software sold on a sampling of
auction sites was illegally-produced. Your best defense:
always buy software from an authorized reseller (an
authorized reseller listing is
available on our website). Macromedia works cooperatively
with law enforcement worldwide on channel cases, and
these channel pirates can face stiff fines and prison
sentences when apprehended.
Macromedia also works with law enforcement on Internet
Piracy and Contributory Infringement, crimes in which
software is illegally posted to or transferred via
the Internet. This category also covers illegally
transferring the means to pirate software, such as
a crack or serial number. Recently, Macromedia has
participated in federal criminal prosecutions against
two two major Internet piracy groups: "Piratez
with Attitudes" and "DrinkorDie." In
both cases, Macromedia had lost hundreds of thousands—if
not millions—of dollars as a result of illegal
activity; and, in both cases, the principal offenders
were sent to prison.
Often the general public does not understand the
need to pursue channel or Internet cases through the
legal system. The fact is that the losses faced by
Macromedia and other publishers are so significant
in this arena that we must either pursue cases or
face erosion of both our brand and our ability to
sell it.
Still, our major effort in fighting piracy is directed
at End-User Pirates—generally corporations that
do not have enough licenses to cover their installations.
Despite ongoing educational efforts from industry
groups (such as the Business Software Alliance), piracy
rates have actually crept up in several large markets
and continue to be close to 30 percent even in the United
States. A general rule is that there should be one
license per installation of a program. However, many
corporations simply do not place the required resources
into asset management. The costs to the underlicensed
company can be staggering, both in terms of fines
and publicity. Macromedia has closed dozens of end-user
cases this year, and many of these had settlements
in excess of $100,000.
Macromedia employs significant staffing devoted
to dealing specifically with software piracy. These
staffs have dedicated managers and a variety of legal
resources at their disposal in every major region.
I welcome calls from our customers and partners regarding
any aspect of our programs and I can be reached by
email at swozniak@macromedia.com,
or by phone at (415) 832-5135.
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