Software Piracy and Penalty

What is Software Piracy?

Software piracy is the unauthorized copying or distribution of copyrighted software.  This can be done by copying, downloading, sharing, selling, or installing multiple copies onto personal or work computers. What a lot of people don’t realize or don’t think about is that when you purchase software, you are actually purchasing a license to use it, not the actual software.  That license is what tells you how many times you can install the software, so it’s important to read it.  If you make more copies of the software than the license permits, you are pirating.

Simply put, making or downloading unauthorized copies of software is breaking the law, no matter how many copies or people are involved.

Whether you are casually making a few copies for friends, loaning disks, distributing or downloading pirated software from the Internet, or buying a single software program and then installing it on multiple computers (including personal), you are committing copyright infringement—also known as software piracy.
It doesn’t matter if you are doing it to make money or not — if you or your company is caught copying software, you may be held liable under both civil and criminal law.  Under the Intellectual Property Code of the Philippines, software piracy is punishable by up to nine years imprisonment and a fine of up to P1.5 million. In addition, introducing pirated software into your computing environment can open you up to the risk of damage to your network through defective software or malicious code.

Why a License Matters?

 

You may not realize it, but software development involves a team effort that blends the creative ideas and talents of programmers, writers and graphic artists. And like most creative works, such as books, music and films, computer software is protected by copyright laws.

When you purchase software, you do not become the owner of the copyright. Rather, you are purchasing the right to use the software under certain restrictions imposed by the copyright owner, typically the software publisher. The precise rules are described in the documentation accompanying the software -- the licence. It is imperative that you understand and adhere to these rules. Most often, they state that you have the right to load the software onto a single computer and make one backup copy. If you copy, distribute or install the software in ways that the licence prohibits, whether you are swapping disks with friends and coworkers or participating in widespread duplication, you are violating federal copyright law. Even if you only help someone else make unauthorized copies, you are still liable under the copyright law.

Apart from legal consequences, using copied or counterfeit software also means:

• Greater exposure to software viruses, corrupt disks, or otherwise defective software;
• Inadequate or no documentation. No warranties;
• Lack of technical product support available to properly licenced users;
• Ineligibility for software upgrades offered to properly licenced users.

What is the Law?

Intellectual Property Rights in the Philippines are protected by the Intellectual Property (IP) Code (Republic Act 8293). The Philippines is a signatory of the Berne Convention for the protection of Literary and Artistic Works and the Trade Related Aspects of Intellectual Property Rights (TRIPS Agreement).
Under the IP Code, “original works” are protected by the sole fact of their creation. It is not necessary to register a work, or to do anything else to obtain the protection of the code. Furthermore, original works are protected regardless of their content, quality, purpose, or the form of their expression. Among other things, the code expressly protects computer programs as literary works. The IP Code also protects the copyright in the manuals and packaging, which accompany the software.

How Does the Law Work?

The IP Code gives the copyright owner the exclusive right to do certain things with the “works,” which in this case are the computer program, the manuals, and the packaging.
These “exclusive rights” include:

• The right to copy the whole program or a substantial part of it.
• The right to adapt or translate the program.
• The right to rent the program to another person.

This permission is given in the form of a license. Every time you purchase a legitimate copy of a computer program, you will receive a license agreement. This agreement will tell you how you may use the computer program. If you do any thing with the computer program, which is not permitted under the license agreement (or the IP Code), then you will have breached the Code and will be liable for the penalties.
This means that you may only copy, adapt or rent a computer program if the copyright owner gives you the permission to do this.

What are the Penalties of Breaking the Law?

• 1st offense
  Imprisonment of 1 year to 3 years plus a fine ranging from P50,000 to P150,000.
• 2nd offense
  Imprisonment of 3 years and one day to 6 years plus a fine ranging from P150,000 to P500,000.
• 3rd offense to subsequent offenses
  Imprisonment of 6 years and one day to 9 years plus a fine ranging from P500,000 to P1.5 million.

Under Philippine law, the copyright owner may also bring a civil action for infringement of copyright. If the court finds that a breach of copyright has occurred, then it may award an injunction prohibiting future breaches, and/or either monetary compensation for the damage suffered, or an account of profits made as a result of the infringement. The court may also award the copyright owner moral and exemplary damages.
Under the Intellectual Property Code (RA 8293), the Intellectual Property Office of the Philippines (IP Philippines) may order the cancellation of any permit, authority or registration that the IP Philippines had granted. The Office may also impose various penalties including cease and desist orders, condemnation or seizure of the products, administrative fines and award of damages.