United States
Environmental Protection
Agency
Committee on Integrity
and Management
Improvement
EPA/35Q-F-93-001
September 1993
«»ERr\ Computer Software
Duplication
Recycle d/Ftecyclabla
Primed with Soy/Canola Ir* on paper thai
Domains at leasi 50% recycled fiber
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Foreword
The EPA Committee on Integrity and Management
Improvement (CIMI) has been working with the
Information Technology Association of America (ITAA) to
present the following information regarding software
piracy, also known as softlifting. ITAA developed a
brochure on this issue as part of an extensive awareness
campaign designed to bring unauthorized software
copying to the public's attention. EPA has adapted
ITAA's brochure, with ITAA's permission, and is making it
available to EPA personnel.
CIMI has provided this leaflet to make EPA employees
and managers aware of the seriousness of copyright
infringement and violation of software licenses. Although
making unauthorized software copies is relatively easy
and is often done innocently, we must all realize that it is
wrong and make every effort to ensure that this practice
does not occur at EPA.
Johfi (1 Martin
Charrnan, Committee on Integrity and
Management Improvement
U.S. Environmental Protection Agency
Either Way, It's Wrong.
People who would never walk into a store and shoplift a
software product think nothing of making several copies
of the same software. The results are the same. The act
is just as wrong.
When it comes to unauthorized duplication of software,
many people do not realize the costly impact on the
software developer and the customer community. The
relationship between customer and developer in a
software transaction is one of mutual trust. The customer
jrusts that the developer has produced a product that will
deliver the desired result, performs according to
^specifications, and is properly documented and
supported. The developer trusts that the customer will
make use of only those copies for which he has
purchased a license, even though making additional
unauthorized copies is relatively easy. Unauthorized
duplication and use of software violates the U.S.
Copyright Law and/or the software license under which
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the software was acquired. Such duplication also unfairly
deprives software developers of revenue they are
entitled to receive for their work.
Software developers find that thousands of illegal copies
have been made by customers who either innocently
believe they are doing nothing wrong, or simply choose
to ignore the law. This cannot continue if the honest
customer is to expect better documentation, customer
support, upgraded software, and new products at a
reasonable cost.
The Problem Is Growing.
America is increasingly dependent on software. Major
organizations are discovering that the right software can
mean increased productivity and higher profits. Many
dollars are invested annually in software produced by
independent companies, and these software developers,
in turn, re-invest in new product development and user
support. Unauthorized users place a substantial burden
on the customer support system, to the detriment of
legitimate users.
As more software is reproduced unlawfully, software
developers devote more and more resources to
protecting their rights, often up to and including filing
suits for damages or injunctions. Most of those who have
been caught have settled out of court to avoid
embarrassment and unfavorable publicity.
Unfortunately, the developer cannot hope to recapture
most of the lost revenue.
A Forgivable or Justifiable Crime? Ask Yourself.
In a sense, there are two types of crimes involved in
unauthorized software copying. Softlifting is performed
by individuals illegally making copies for their own use, or
use by a friend. Most softlifters see themselves helping a
friend, and don’t realize a crime is being committed that
hurts not only the software developer, but the customer
community as Well.
Software piracy occurs when individuals or organizations
choose consciously to encourage, or unconsciously to
allow, employees to make and use illegal software
copies, especially if that is done for private financial gain
or for profit. Both practices violate the U.S. Copyright
Law and the U.S. Criminal Code and expose the
individuals and organizations involved to significant fines,
even jail terms.
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No one wants to sue a customer. It would be far better to
all if the need for legal action could be eliminated
entirely.
Where Is It Happening?
Software piracy and sottlifting are happening in our
homes, schools and offices. Examples include
employees copying software because they want a copy
for personal use at home. Softlifting has invaded the
classroom where students, and even teachers, copy
software for school use, or to give to friends. Often it
happens when organizations expand computer
capabilities and new users are given unauthorized
copies, rather than going through the purchasing
procedure.
In order to serve the user community effectively, the
software industry is working with customers to put an end
to softlifting and software piracy. People have to
understand the law and their responsibility to keep the
social contract with software producers.
The Law Is Clear.
Reproducing computer software without authorization
violates the U.S. Copyright Law and U.S. Criminal Code.
It is a Federal offense. The money paid for a software
product represents a license fee for the use of one copy.
It does not represent an authorization to copy beyond
making I copy for archival purposes. Civil damages for
unauthorized software copying can be $100,000 or more
and criminal penalties include lines and imprisonment br
up to ten years. Bills have been introduced in Congress
to strengthen the law and increase penalties.
Myths and Facts of Software.
Let’s start by dispelling some myths with a few facts.
First, software developers do not condone unauthorized
copying in order to gain market penetration.
Second, the price of software does not make
unauthorized copying justifiable.
Third, although the cost of softlifting is borne initially by
the software developer, it is ultimately paid for by
legitimate users.
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Fourth, rationalization of software copying does not make
it right or legal. Some people say, “the product is too
expensive.” The price set by the developer and retailer
does not give someone an unlimited license to copy.
Also, software pricing is value based. Most software
customers find that they pay only pennies per hour for
the use of a valuable information processing tool.
A final myth is that the developer expects people to copy
it. If you believe this, call and ask the publisher.
Research and development for a single software product
cost thousands of staff hours and millions of dollars. The
price you pay for software includes the development,
marketing and support costs, plus a reasonable return on
the investment.
When illegal copies are produced, cheating the
developer of revenue, the software company is faced
with having to charge legitimate users higher prices. This
is simply not acceptable - to honest customers or the
industry.
What It Means to You.
lt’s obvious that legitimate software users are paying for
unauthorized copying along with software developers.
It’s obvious, too, that no one is going to put up with it for
long.
New and better software is important to the growth and
productivity of your organization.. The wide variety of
software applications available allows you to explore
more options, have more complete and timely
information for decision making, and help to ensure an
improvement in the quality of the industry’s products and
services. New software won’t be financed unless its
investors feel secure in receiving a reasonable return on
investment. As a software user, you have the
responsibility to live up to your agreement, or the
Government’s agreement, with the developer.
Is Someone Exposing Your Organization?
We are aware that most people do not encourage
unauthorized software copying. We also believe that
most people confronted with the possible consequences
of these acts would stop. ITAA is encouraging all
organizations that have an investment in software to
conduct an internal review to ensure that unauthorized
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software copying is not occurring. No one wants costly or
embarrassing legal action.
The EPA Committee on Integrity and Management
Improvement asks your support in informing people in
your organization that receiving or being a party to
unauthorized duplicating or copying of software, in
violation of a copyright or a license agreement, is
punishable by law.
Where to Get More information.
For additional information, please refer to the EPA
Information Security Manual (EPA Directive 2195) and
Chapter 4 of the EPA IRM Policy Manual (EPA Directive
2100). Copies of these manuals can be obtained by
contacting the Information Management and Services
Division on (202) 260-5914.
Conclusion
It is essential that EPA employees use software in
accordance with U.S. copyright laws and/or any license
which has been purchased by the Government. To do
otherwise may violate the law and/or license and may
result in personal or Government liability. It also exposes
the Agency to embarrasiment and serious financial
co nsequ e ncës.
EPA needs to effectively plan for future needs and
acquire a sufficient number of copies and/or a license
right to make a specific number of additional copies.
Therefore, if you are in a position to recommend or
approve computer purchase decisions, you should make
sure that you have ordered sufficient copies of the
necessary software, or have purchased a license to
make a sufficient, though specific, number of copies.
If you know or suspect that unauthorized software copies
are being made, please notify the Office of Inspector
General (OIG). A telephone hotline to the OJG is
available: (202) 260-4977 or toll free (800) 424-400C.
Information is confidential. -
As a step towards pollution prevention, one copy of
this leaflet will be printed for every two employees.
Therefore, employees are encouraged to share their
copies.
*U.S. GOVERNMENT PRINTING OFFICE: 1993-0-723-869
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