What motivates people to pirate software?

It’s likely that not long after personal computers first appeared in stores, someone began figuring out how to get software for free. A report by the Business Software Alliance (BSA) reveals that pirated software made up 41 percent of all software on PCs worldwide [source: BSA]. The BSA also claims that piracy costs software companies billions in lost revenue. However, critics note that the BSA is funded by software companies, which raises questions about its data's accuracy. Regardless of the statistics, piracy is undeniably a persistent issue for software developers.

This ongoing issue has prompted companies to seek various solutions with mixed success. Long before the Internet became widespread, piracy existed, and companies took measures such as embedding copy protection within their software. Some products included code that made copying difficult, while others, like many computer games, required players to consult a manual or other physical materials included with the game to prevent unauthorized duplication.

As the Internet and World Wide Web emerged, companies started testing different types of digital rights management (DRM). Certain DRM systems check the software’s authenticity by connecting to a remote server that holds the DRM application. The downside of this approach is that if the company goes under or shuts down the server, the software on your computer or device becomes unusable due to the inability to verify its purchase.

Not all DRM methods are as restrictive. However, by design, DRM imposes limitations on users. Given that we're used to managing our possessions however we wish, DRM doesn't sit well with consumers. For instance, in the U.S., purchasing a book grants the right to sell it, protected by the first-sale doctrine under copyright law. Yet, DRM often prevents the resale of software, even after it's been bought and used. Additionally, creating a copy of software is far simpler than duplicating a book or magazine.

Could affordable software be the answer? If software were cheaper, would more people be inclined to buy it?

Economics and Software Piracy

If software were priced more reasonably, might piracy decrease? If economics were the driving factor behind piracy, lowering costs could be a feasible solution. Software companies could offset the reduced profit margin by increasing sales volume. However, the issue isn't that straightforward.

Experts from various fields, including economics, sociology, and psychology, have explored the reasons behind software piracy. There is no universally agreed-upon explanation for it, but specialists from these disciplines have proposed numerous factors that may influence someone's choice to steal software.

Let's address the cost issue first. It's true that some individuals will resort to piracy due to high software prices. If the cost exceeds what someone is willing to pay, they may turn to piracy. A common justification goes like this: the software company is massive, generating billions, so stealing a single copy of software doesn't make a noticeable difference to such a large corporation. In other words, since the company won't feel the loss, the act of stealing isn't seen as wrong.

Another common justification pits the cost against the perceived worth of the software. The pirate might consider the software overpriced, which doesn't change the fact that they still want access to it. Rather than paying the listed price, they opt to steal it. The pirate may feel the company is at fault for setting the price too high for what the software is worth. But would the pirate still steal if the price were more reasonable?

Studies indicate that many pirates steal software regardless of the price. While the cost is often used as a justification, it isn't the primary motivator. Research shows that people view digital property differently from physical property. Software isn’t valued as highly as a physical object like a car. Additionally, many believe that stealing software isn't the same as stealing a physical object, since they’re copying the software rather than physically taking something. This perception leads them to see stealing software as ethically different from grand theft auto [source: Crowell, et al].

Cultural Factors and Software Piracy

Social and cultural elements also contribute to software piracy. Economists such as C. A. Depken II and L. C. Simmons argue that societal values might influence the decision to pirate software. They suggest that when people in a society feel disconnected from authority, they might be more prone to engage in actions like software piracy [source: Depken, Simmons]. This could explain the prevalence of software piracy in countries like China, where there is a significant gap between the pirate and any authority who could intervene.

As software piracy is a global issue, political factors could be at play as well. The BSA reports that the United States experiences less software piracy than many other nations. The U.S. is also a major producer of the software used worldwide. Some people in other countries may feel justified in pirating software, seeing it as a product of a large, affluent nation that already holds significant global influence. Others may steal software out of nationalistic pride—if their culture holds negative views of the U.S., taking from the country might feel justified.

Psychologists from the University of Notre Dame suggest that computers create a "psychological distance" between pirates and their victims [source: Crowell et al.]. The computer acts as a sort of ethical barrier, making the act of piracy seem devoid of consequence. Pirates don't perceive any harm in their actions, and the likelihood of being caught feels low.

The role of the Internet is also significant. It's easy to access pirated software, and the Internet offers a sense of anonymity, which reduces personal accountability. Given the opportunity to acquire something valuable for free with minimal risk of getting caught, it's clear why some people choose to pirate software.

The Cost of Piracy

Do software pirates truly harm the industry? Paul Craig references software pirates in his book, "Software Piracy Exposed", who don't seem to believe they hurt anyone. They argue that companies don't lose much revenue because pirates aren't potential customers in the first place. The logic is that software companies aren't missing out on sales, as pirates either steal the software or go without it, which means the companies don't lose money.

However, some pirates go a step further by stealing software with the intent to sell it to others at a significantly lower price. These pirates cost companies money. Although it's uncertain whether their customers would ever have bought the software at full price, there's no denying the loss. Lowering the price might deter some piracy and its customers, but it wouldn't stop all of it, as there will always be those who want to get the program for free.

For companies, the dilemma is clear. Dropping prices could increase sales and reduce some piracy, but it won't solve the issue entirely. Focusing on customer loyalty and delivering a high-quality product might also help curb piracy. Many pirates claim they'd pay for products from companies they trust and respect. But how can you trust someone who pirates?

Software piracy remains a serious problem for many businesses. To understand it fully, we need to dive deeper into the motivations behind it. It seems like a multifaceted issue with no single cause, suggesting that there might not be an easy fix. Lowering software prices might increase sales as people who would neither pirate nor buy expensive software decide to make a purchase. But that might not significantly affect piracy levels. To tackle the issue, we'll likely need to change how we view the value of software.