Illegal copying of computer software, often referred to as piracy, is theft. Software theft occurs through counterfeiting, hard disk loading by unscrupulous dealers, companies and organisations duplicating software in excess of their licence entitlement, training and educational institutions using or distributing software illegally, individual users making copies for friends and colleagues, and through electronic distribution via the Internet through web sites, auction sites, newsgroups and online classified advertisements. Generally, the right to make a second copy of a Microsoft software product only applies to some application products and not to operating system software. This cost is not only borne by software manufacturers. It affects local distributors and dealers, which are mainly Australian companies.
Software theft costs local business and jobs.
Illegal software copying increases the risk of viruses being spread. Illegally copied software does not come with manuals or documentation and is not eligible for support, which limits its useability. There is no upgrade path for users of illegal copies to gain low cost access to upgrades and new versions. Software theft exposes those who use as well as make illegal software to risks of heavy penalties through civil damages or even criminal prosecution. This is a serious problem.