We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Internet

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is the Piracy Industry?

John Lister
By
Updated: May 17, 2024

The piracy industry is made up of people and organizations which profit from selling illegal or bogus copies of genuine software. The nature of the internet today means that counterfeiting is likely more profitable than simply selling copied software. The true costs of piracy to both the software industry and society are heavily disputed.

Software manufacturers use a variety of techniques to combat the piracy industry. The most common is requiring a license key, a specific number which makes a specific copy of the software work. Often, such software must be registered online so that the same license key can’t be used twice.

Ironically, the piracy industry is less likely to thrive online than in the physical world. That’s because many illegal copies of software are available through distribution methods such as peer-to-peer filesharing, particularly torrent systems, where it is difficult or impossible to charge downloaders any money. Most people who consider using pirated software to be morally acceptable will prefer to get copied programs free of charge.

It’s arguable that the piracy industry actually makes most of its money from counterfeiting. This is where software is passed off as legitimate and customers do not always believe it is copied. In some cases the product sold is a copy which is sold at below retail price but still makes a large profit for the pirates. In other cases the software is completely bogus and will not work. This is more common in online sales, particularly across international borders where customers will find it difficult to seek redress.

The cost to legitimate software manufacturers from the piracy industry is disputed. Figures released by the Business Software Alliance in 2009 said piracy worldwide cost $53 billion US Dollars (USD). This figure was based on the estimated number of pirated programs and their full retail value. However, critics argue this is unrealistic as many people who use pirated program would not have paid for it in any case. But there are also other associated costs to piracy such as third-party retailers losing business, and governments losing tax revenues from legitimate sales.

Some American officials have claimed the piracy industry funds terrorist activity. It’s unclear if this is strictly true as, although some piracy is carried out by large-scale criminal gangs and some gangs fund terrorism, there have been few, if any, direct links between piracy and terrorism made public. This has led to accusations that officials exaggerate the link as a way of scaring computer users away from using pirated software.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
John Lister
By John Lister
John Lister, an experienced freelance writer, excels in crafting compelling copy, web content, articles, and more. With a relevant degree, John brings a keen eye for detail, a strong understanding of content strategy, and an ability to adapt to different writing styles and formats to ensure that his work meets the highest standards.
Discussion Comments
John Lister
John Lister
John Lister, an experienced freelance writer, excels in crafting compelling copy, web content, articles, and more. With...
Learn more
Share
https://www.wisegeek.net/what-is-the-piracy-industry.htm
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.