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What is online piracy?

Online piracy is the illegal copying of copyrighted materials from the Internet It allows users to download and share software for free

Problems occur when the authors’ and rights holders’ works are file-shared against their will.

It was started in 1999, with the first peer to peer file sharing website, Napster

Why is piracy used?

Software downloads are too expensive and the average person cannot afford to purchase the rights to legally use them,

Some users are genuinely unaware that the file source that they are using is illegal,

Others believe that their contribution in illegal downloading has no impact on industries, but the accumulated effect is devastating.

Other countries do not have to follow North American copyright laws, in some countries it is even legal to trade software on open markets.

Who is using it?

Piracy is being used by individuals and businesses from all over the world.

Pros and Cons of the Technology
Pros
Users can download any files at any time, free of charge.
Users save large amounts of money on software and files.

Cons
It is illegal, results in stealing from artist and industry members.
There is a high risk of downloading viruses and Spyware.
Music and video files are often of poor quality.

Examples of Piracy Sites

How does it affect Managers?

According to Moore’s Law, the software that companies spend large amounts of money on will become obsolete or outdated in 18 months, making pirated software very tempting for managers.
Piracy websites make their money from company advertisements. Managers must decide whether or not it is ethical to place ads on these websites.
Managers in the entertainment industry are concerned with declining business and sales. They must find ways to profit despite the free versions of their products available online.

Where is the industry headed?

Piracy has continued to grow rapidly since it started in 1999.
Its future growth or decline in popularity will rely heavily on the Stop Online Piracy Act (SOPA).
If SOPA is passed and put into action, laws regarding piracy will be much more strict, resulting in less piracy in North America and consequently in Europe countries.
It is still uncertain how SOPA will affect the rest of the world, as they do not have the same copyright laws that North America follows.

Online Piracy in Numbers.

Barriers to Piracy

Piracy is illegal and with failure to stop, after a written warning could result in prison and hundreds of thousands of pounds(£) or dolars($) in fines.

Stop Online Piracy Act (SOPA)

All in all, this new bill wraps all the web sites of the whole world and grasps that disciplinary action will be taken against websites which facilitate violation of copyright by users. This act enlarges the authority of the US over foreign websites accountable for infringing US copyright. This places internet users all over the world in the crossfire. The internet community appears to be routing into two different directions when it comes to the issue of SOPA.
There are a lot of hackers that are steal and copy files of a particular content or website and claim as their own.
Hence, Hollywood recording and production companies passed the Stop Online Piracy Act (SOPA) to the senate in order to alleviate this problem and halt the spread of leaks in the internet.
Many people support SOPA, but there is also a large group of people who oppose the bill, claiming that it is a violation of rights.