Recently, The Toronto Star published an article entitled RCMP seizes BBS, piracy charges pending. The RCMP have possessed all computer components belonging to the "90 North" bulletin board system in Montreal, Quebec. The board is accused of allowing end-users the opportunity to download (get) commercial and beta (not marketed, test) software.
After a four month investigation, the RCMP seized ten micro-computers and seven modems. In addition, they found software applications of major corporations valued at a sum of approximately $25,00.00 (It is estimated that $200 million dollars are lost in revenues from software piracy, according to the Canadian Alliance Against Software Theft {CANST}). For a fee of $49/year, the user was enabled to download such software as WordPerfect, Microsoft DOS,Windows, Lotus, Borland C++, dBase IV, and IBM LAN which are all copyrighted by The Canadian Copyright Act. The RCMP acted in response to concern from the users who stated that they were not sure whether this software could be distributed electronically.
Yves Roy, sergeant of RCMP stated that charges will be laid in early December under paragraph 42 of The Copyright Act. Conviction under this act carries a maximum punishment of a fine of $1 million dollars, and/or 5 years imprisonment.
Because newspaper articles are very biased in one point-of- view, it is difficult to look at both sides of this situation. But let us discuss piracy in a more general manner. Software piracy is the act in which someone takes a copyrighted portion or whole of software, then electronically copies and/or distributes it, with or without modification of any sort. The software is distributed to other people and/or organizations who financially or otherwise charge/trade for the software's use, and lacking authority or permission from the company or person in which the software is copyrighted by.
According to the article, the "90 North" BBS satisfies the software piracy definition and is therefore guilty of the act. The BBS is further liable if the software companies decide to file law suites against them. This is all fairly evident, but we need to ask ourselves whether The Copyright Act and its punishments are fair for modern society. To answer this question, we need to look at piracy and how it affects the world as a whole.
One may wonder how "90 North" makes its money. Just to stay at a break even point, it needs 2,500 members! The answer is that the BBS does not buy the software from retailers. It buys the software from "pirate/cracking groups" such as The Humble Guys (THG), International Network of Crackers (INC), National Elite Underground Alliance (NEUA), Software Exchange (SEX), Public Enemy (PE), etc. (most of the groups are deal in the U.S. only). But how do these organizations get their software?
From various places around the world such as Europe, the pirate groups pay people who work in software companies to send them commercial or beta software. Then the pirate groups hire "crackers" (people who alter the program's code) to un-copy-protect the software. Once this is done, the pirate groups ask various U.S. BBS's to pay them for this un-copy-protected software. Then, as you already know, the BBS asks the end-user for an annual fee to have access to the BBS. So, for an individual to risk his job for a fast buck, many people are able to get software at much of a discount.
Canadians, however, are far luckier than the United States
. Canadian pirate BBS's have a policy "you get as much as you give" (at various ratios), meaning that the amount of software you give to the board, is the amount of software (in bytes) you may receive; and no fee is required. As software gets bumped from one BBS to another in the states, it eventually makes it way up into Canada, where BBS users have the opportunity to get commercial software simply by giving the board other software.
So what does all this activity tell us? This tells us the people are willing to go to great lengths to get software at a lower cost, or possibly in exchange for other software and are succeeding in their efforts. Although more than 50% of their income is from other companies which do not pirate, this posses a problem for the software industries. By fining a single bulletin board out of the thousands in North America, there would be little accomplished. Not to mention the fact the it is extremely difficult to prove and convict people under the copyright act.
This is how the scene looked in 1980 - posing a huge problem of business and the industry. The picture is much different now. What did companies do to overcome the problem (The Copyright Act didn't help too much!)? Businesses made programs such that one would require a manual, product support, other reference material, etc. So, now when somebody "illegally copies" an application, they need this extra material in order to use the software efficiently and effectively. There are still some quirks, as someone could photocopy a manual (though fewer people would spend the extra time and money). But nevertheless, the software companies have had success in slowing down the software piracy process. In today's society, software is at far the least income source for corporations such as WordPerfect Corp. They make their money from individuals purchasing extra manuals, reference material, supplementary hardware, and calling product support. Software companies are conscious of the pirate world and the changes they have made. Some companies actually want you to take the software. With the SHAREWARE concept, one evaluates the software, and then pays if s/he feels it is a worthy product. Companies are, of course, satisfied with the current conditions. Most of the companies are still in business, and still bringing up more technological advancements. The companies, in one sense , have outsmarted and beaten the pirates.
From BBS's, users have to opportunity to view software and evaluate it before they pay the high cost of the extras. Programmers also have the opportunity to view other works and learn from the advancements, or find the errors in the beta (or commercial) versions. Like all laws, The Canadian Copyright Act needs to be modified with the changing society. The act as of now is having little effect.
The Copyright Act needs to be changed so it reflects, without distortion, the views of individuals and corporations. A law is made to keep order, and if it doesn't do that, then certainly it needs modification
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