Software Piracy: Some Issues

Software Piracy: Some Issues Mehdi Sagheb-Tehrani (PhD) Associate Professor of MIS Columbus State University College of Business, 4225 University Ave, Columbus, GA, 31907 Email: 1- [email protected] 2- [email protected]

ABSTRACT In this article, an attempt is made to introduce a software piracy model and test it in order to resolve this issue more successfully. This study presents an exploratory investigation designed to identify some factors leading to software piracy intention. One hundred ninety students from nine courses at two various universities took part in this investigation. The study supports that the main motive of software piracy is the high cost of the software. The study suggested a number of hypotheses and they were tested using a series of t-test. The author hopes that this paper provides valuable insights into the notation of educational design as an important part of an academic’s routine activities.

Keywords: Software Piracy (SP), Computer Information Systems, (CIS), End User Piracy, Client-Server Overuse, Internet Piracy, Hard-Disk Loading, and Software Counterfeiting INTRODUCTION According to the Merriam Webster dictionary (Webster, 2010), piracy is defined as the unauthorized use of another's production, invention, or conception especially in infringement of a copyright. The types of production, invention, or conception focused on in this paper are those works typically associated with a computer; such as programs or software. Software piracy can be categorized into five types: end user piracy, client-server overuse, internet piracy, hard-disk loading, and software counterfeiting (Business Software Alliance). The purpose of this study was to develop a software piracy model (see Fig.1) and test it. This is an initial step towards establishing a software piracy model. Similar research (Graham, P.A., Galletta, D.F. and Thong, J. 2003, Holsapple C.W., Lyengar, D., Jin, H. and Rao, S. 2008 ) has been done. RESEARCH QUESTIONS, METHOD AND LIMITATION The research presented here draws upon social system theory in functionalist sociology defined by Burrell & Morgan (Burrell, G, Morgan, G. 1979). This paper approaches its subject matter from an objectivist perspective. The research presented here is based on the “holistic view” school (Social System Theory). According to Wikipedia, holism is defined as the idea that all the properties of a given system cannot be determined or explained by its component parts 1

alone. Instead, the system as a whole determines in an important way how the parts behave. Questions The main research questions (RQ) and hypotheses (H) are as follows: RQ: Can factors like punishment, ethics, economy and technology lead to piracy intention? H1: The main motive of software piracy is the high cost of software. H2: Software piracy is an ethical issue. H3: Technically, it is easy to commit software piracy. H4: The likelihood of being caught committing software piracy is very low. H5: Software piracy attitude leads software piracy intention. Methodology The objective of this study was to explore some factors that influence software piracy. A questionnaire was designed based upon the software piracy model (see figure-1). The survey was approved by the institutional review board at the institutions. The questionnaire was comprised of fifteen questions. Some of the questions were designed as open-ended questions. The questionnaires were pre-tested by some students before sending them out. The questionnaire was sent out to 190 students taking nine different courses at university B and university C ( For the purpose of confidentiality, the names of universities are not disclosed). The answers they provided were confidential and did not affect their course performance/grade in any way. Participants were not required to identify themselves; the name of the respondent on the questionnaire was optional. In total 79 questionnaires out of 190 questionnaires (42%) were returned. After collecting the questionnaires, the author analyzed each question from each respondent and summarized the data in almost 18 tables. Limitation As with any research, this study has limitations. The data were obtained from 9 courses which had one hundred ninety students. Furthermore, the questions in this study were based upon the software piracy model (Figure-1). The study did not include other factors (such as values, politics and so on) in the model Further studies might identify additional factors related to the pros and cons of the study software piracy model. CONCEPT DEVELOPMENT AND LITERATURE REVIEW Taking the piracy problem seriously, software industries have spent a lot of money researching it. Business software alliance (BSA) and Software and Information Industry Association (SIIA) have combated software piracy through a two-part program: education and punishment. Many have proposed that the education and enforcement model need to be required together, and many agree that law enforcement is really important in terms of deterring piracy. Researchers have been paid attention to the piracy issue in the past two decades, seeking ways to improve the deterrence efficiency. Many studies have been done in the American domestic 2

setting, yet not enough effort has been made to understand the international markets and different cultural effects (Holsapple C.W., Lyengar, D., Jin, H. and Rao, S. 2008 , ITRC 2009) . Factors The literature does not offer deep explanations for the growth in software piracy. Software Publishers Association (SPA) study (BSA, SPA, 2006) showed that per-capita income is not an issue in software piracy growth. Study by Shin et al. (Shin, S.K., Gopal, R.D., Sanders, G.L., and Whinston, A.B. 2004) showed that the high price of software is a driving force in piracy in poor countries where residents cannot afford high priced software. Other factors have also been proposed, including less strict implementation of copyright regulations, availability of pirated software (Moores, T. 2003, Moores, T. and Dhillon, G. 2000) moral problems with the copyright enforcement, the degree of IT infrastructure, and access to the Internet (Forum, 2000). Software piracy is assumed to be more common in countries with low IT infrastructure since the older editions with fewer features are available. Thus, people often copy and work with older edition pirated software (Bagchi, K., Kirs, P. and Cerveny, R. 2006). Attitudes about copying also play a major role in piracy. In some countries such as the U.S., where copying is generally compared to cheating, copying is often viewed as a cultural exercise, not an immoral practice, in many Asian nations. Even in developed Western countries some people believe that pirating software is not wrong. Copyright laws are not well understood in many of these nations (Bagchi, K., Kirs, P. and Cerveny, R. 2006, Swinyard, W.R., Rinne, H. and Kau, A.K. 1990). However, one has to acknowledge that copyright has always been the key issue when promoting the transition of public access to culture and information resources. Culture plays an important role here. National culture is the collective mindset that distinguishes members of one nation from another (Hofstede, G. 1980). The notion of culture is considered one of the most significant factors contributing to the formation of individual and social norms in regions across the globe (Shin, S.K., Gopal, R.D., Sanders, G.L., and Whinston, A.B. 2004). Many researchers believe that software piracy has also grown with the advent of the Internet, because some Web sites offers software free or at a very cheap price ( Forum, 2000, Shin, S.K., Gopal, R.D., Sanders, G.L., and Whinston, A.B. 2004). The ethical dimension of software piracy is important. Recently, there have been increased interests in ethical standards for computer users. Many studies have questioned whether today’s computer user is responsible and ethical [1, 7, 13, 14, and 18] (Baase, S. 2003, Gan, L. L., and Koh, H. C. 2006, Lucas, R., and Weckert, J. 2008, Masrom, M, Ismail, Z. and Hussein, R. 2009, and North, M.M., George, R., and North, S. M. 2006). The question of the role of ethical judgment is important here. Ethical judgment is the ability to make a decision based on some moral idea. This is different from social norms, which are the main patterns of behavior, such as dress codes or dining manners. Moral judgment, in contrast, is a cognitive-developmental attribute (Kohlberg, L 1984, Moores, T and Chang J.C, 2006). The literature offers numerous definitions and notions of the term “computer ethics”. Based upon the above mentioned factors the following model is developed. There can be other factors incorporated into the model, but to limit the study only those factors above were considered (see the following figure).

RESEARCH FINDINGS 3

Data analysis The questionnaire was pre-tested and refined after the pre-test. Questionnaires were sent out via email to all 190 students who took those courses listed in Table-1. All the courses were conducted as face-to-face (FTF). The online platform (D2L) was utilized as a supplement to the courses. Thirty one (31%) questionnaires were returned. The first item in the questionnaire was related to gender of respondents. About 52% of respondents were male and (48%) were female. The next question was whether respondents were home students or international students. The result shows 96% reported as home students while 4% were international students. Question three was about the primary motives of software piracy (one could choose multiple options). The finding shows 34% responded that the cost of software is high, while 24% reported it is convenient. Also, 22% indicated individual economic situation and high cost of software as one of the motives. The next question was focusing on software piracy as an ethical issue. The result shows, 86% responded yes while 14% reported no. Question five asked if one committed software piracy (SP), what is the likelihood one will be caught. The study shows 62% responded very low while 37% reported median.

-Punishment -Law Enforcement H4

H4 H5

-Ethical Framework -Awareness

Factors

H1

H3

-Culture

H2

-Attitude

Piracy Intention

H2

-Society

H1

-Economy Status -Software Cost

-Politics -Education H3

Technologically easy Figure-1- Software Piracy Model H= points to hypothesis in the study

The next question asked, if one committed software piracy, what would be the response of most of the people who are important to him/her. The study shows 78% reported they do not care and 22% responded they would be disapproved. Question seven asked whether committing software piracy is good or bad. The study shows 100% reported as bad. The next question was 4

whether committing software piracy is fun, foolish, wise, pleasant or unpleasant. The study shows 62% responded foolish while 20% reported unpleasant. Also 12% reported as other. Question nine asked if anyone can commit software piracy. The finding shows 81% reported agree and 19% stated disagree. The next question focused on whether people who are important to you think it is acceptable to commit software piracy. The result shows 75% replied disagree while 25% answered agree. Question eleven asked if people who are important to you would disapprove of software piracy. The result shows 53% responded agree while 36% reported do not care. Only 11% answered disagree. Question twelve asked whether technically it is easy to commit software piracy. The result shows 55% reported agree and 39% responded medium. Only 6% stated disagree. The next question asked what the likelihood is to be caught committing software piracy. The result shows 59% responded very low while 38% reported medium. Only 3% mentioned very high. Question fourteen asked what the probability is that someone would be caught if attempting software piracy. The result shows 79% reported very low while 30% responded medium. Only 1% stated very high.The last question asked, if you have the opportunity, would you commit software piracy. The study shows 74% answered disagree while 17% reported medium. Only 9% stated agree.

Hypotheses testing RQ: Can factors like punishment, ethics, economy and technology lead to piracy intention? H1: The main motive of software piracy is the high cost of software. Based upon the facts, one has to do the Chi square test using the following formula:

H0 : neutral response, i.e., there is no differences in motives of software piracy. Ha or H1: non-neutral (some have higher responses than other), i.e., the main motive of software piracy is the high cost of software. After inserting all values in the formula then 84 As the value of 84 lies in the region to the right of 11.070, then H0 is rejected at the 0.05 significant level in favor of Ha or H1, i.e., the data support H1. So, one can conclude that the main motive of software piracy is the high cost of software. H2: Software piracy is an ethical issue. Based upon the facts, one may do the Chi square test using the above mentioned formula. H0 : neutral response, i.e., there are no differences in software piracy as an ethical issue. Ha or H2 : non-neutral, i.e., ( here we have smaller differences). So, software piracy is an ethical issue. After inserting all values in the formula then 4 As the value of 40 lies in the region to the right of 3.841, then H0 is rejected at the 0.05 significant level in favor of H2, i.e., the data support H2. So, one can conclude that software piracy is an ethical issue. H3: Technically, it is easy to commit software piracy.

5

Based upon the facts, one may do the Chi square test using the above mentioned formula: After inserting all values in the formula then As the value of 29 lies in the region to the right of 5.991, then H0 is rejected at the 0.05 significant level in favor of H3, i.e., the data support H3. So, one can conclude that technically, it is easy to commit software piracy. H4: The likelihood of being caught by committing software piracy is very low. Based upon the facts, one may do the Chi square test using the above mentioned formula: After inserting all values in the formula then 7 , as the value of 79 lies in the region to the right of 7.815, then H0 is rejected at the 0.05 significant level in favor of H4, i.e., the data support H4. So, one can conclude that the likelihood of being caught by committing software piracy is very low. CONCLUSION Software and computers have become indispensable tools in our businesses, schools, and personal lives. No technology is without risk and the Internet is no different. Pirated software exists in the marketplace. Based on the data published by Business Software Alliance or findings in the relevant literature, software piracy seemed to be an issue causing concerns for intellectual property protection. The purpose of this study was to develop a software piracy model (see Fig.1) and to test it in order to resolve this issue more successfully. This is an initial step towards establishing a software piracy model. The objective of this study was to find out about some factors that influence software piracy. A questionnaire was designed based upon the software piracy model. As mentioned earlier, this study had limitations. The data were obtained in 9 courses from two different universities. Furthermore, the questions in this study are based upon the software piracy model. The study did not include other factors (such as values, politics and so on) in the model. The study produced five hypotheses. As the study shows, H1-H4 were tested (using Chi-Square) and they were supported by the findings of the study. Therefore, H5 was supported by all the other hypotheses. So, the study as a whole supports the software piracy model (Fig-1). Results of this study can be used as guidelines for practitioners to implement strategies in dealing with this globally persistent problem. Moreover, the study suggests software piracy, and perhaps other economical problems facing the information systems profession, could be addressed by developing cheaper software. Further studies might identify additional factors related to the pros and cons of the study software piracy model. In addition, considering the findings of this study, this paper provides valuable insights into the notation of educational design as an important part of an academic’s routine activities. Another direction for future study is to collect more data from more participants to further validate the conceptual model. One may say that this is a kind of ongoing research as software development advances. Another direction for further study is to see if there are any significant differences between male and female participants in their responses. REFERENCES Baase, S. (2003). A Gift of Fire: Social, Legal and Ethical Issues for Computers and the Internet (2nd Ed.). New Jersey: Prentice-Hall. Bagchi, K., Kirs, P. and Cerveny, R. (2006). Global Software Piracy: Can Economic Factors Alone Explain The Trend?, Commun. ACM 49, No.6, June., pp. 71-75. BSA, SPA, (2006), BSA/SPA Study Report on Global Software Piracy, 2006); www.bsa.org.

6

BSA, (2009). Software Piracy on The Internet: A Threat To Your Security. A report by the Business Software Alliance, October, 2009. http://global.bsa.org/internetreport2009/ Burrell, G, Morgan, G. (1979). Social Paradigms and organizational analysis. Heineman, USA. Forum, (2000), Forum section. Commun. ACM 43, 12 (Dec. 2000), 11–13. [Gan, L. L., and Koh, H. C. (2006). An Empirical Study of Software Piracy among Tertiary Institutions in Singapore, Journal of Business Ethics (43:5), pp 640-647. Graham, P.A., Galletta, D.F. and Thong, J. (2003). Software piracy in the workplace: A model and empirical test. Journal of Management Information Systems, 20 (1), 153 – 177. Hofstede, G. (1980) Culture's Consequences: International Differences in Work-Related Values. Sage, Beverly Hills, CA. Holsapple C.W., Lyengar, D., Jin, H. and Rao, S. (2008). Parameters for Software Piracy Research, The Information Society, No. 24, pp.199-218. Kohlberg, L .(1984). The Psychology of Moral Development: The Nature and Validity of Moral Stages, Harper & Row, San Francisco. Lucas, R., and Weckert, J. (2008). Ethics and the ICT Industry – A Research Agenda, Proceedings of ETHICOMP 2008, pp 550-557. Masrom, M, Ismail, Z. and Hussein, R. (2009). Ethical Awareness of Computer Use Among Undergraduate Students, SIGCAS Computers and Society, Volume 39, No. 1, June 2009. Moores, T and Chang J.C, (2006). Ethical Decision Making in Software Piracy: Initial Development and Test of a Four-Component Model, MIS Quarterly Vol. 30 No. 1, pp. 167180,March. Moores, T. (2003). The effect of National Culture and Economic Wealth on Global Software Piracy Rates. Commun. ACM ,September 2003/Vol. 46, No. 9, pp.207-216. Moores, T. and Dhillon, G. (2000), Software piracy: A view from Hong Kong. Commun. ACM 43, 12 , Dec., PP.88–93.. North, M.M., George, R., and North, S. M. (2006). Computer Security and Ethics Awareness in University Environments: A Challenge for Management of IS, ACM SE’06, pp 434-439. ITRC (2009) ; ITRC 2009 Consumer Awareness Survey: The Need for “Secure Payment Agent” (SPA); 23 September 2009; http://www.idtheftcenter.org/artman2/publish/lib_survey/ SPA_White_Paper_printer.shtml. Shin, S.K., Gopal, R.D., Sanders, G.L., and Whinston, A.B. (2004), Global software piracy revisited. Commun. ACM 47, 1, Jan., pp. 103–107. Swinyard, W.R., Rinne, H. and Kau, A.K. (1990). The morality of software piracy: A crosscultural analysis. Journal of Business Ethics, No. 9, pp.655–664.

7