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Software piracy is the unauthorized copying of software. Most programs are licensed so that the program can only used on one computer at a time. You are legally allowed to make a copy as a backup for yourself but you aren't allowed to sell that copy to another person. Software piracy is impossible to stop because it is nearly impossible to track it. The US amazingly has one of the lowest rates of piracy in the world.

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The five most common forms of software piracy are Softlifting, Hard Disk Loading, bulletin Board Piracy, Counterfeiting, and software Rental. Softlifting is the creation of unauthorized copies by a licensed user for the use of fellow employees, colleagues or friends, contrary to the terms of the license agreement. Hard Disk Loading is the unauthorized creation and loading of copies of software programs onto the hard disks of computers by hardware dealers. Bulletin Board Piracy or Internet Piracy is the illegal transmission and posting of copyrighted software programs to computer bulletin boards, from on-line services or via electronic mail. Counterfeiting isthe illegal duplication and sale of copyrighted software that is designed to appear legitimate. Software Rental or is the rental of software alone or installed on a computer which is, in turn, rented for a specific time period. According to the Business Software Alliance (BSA), the annual estimated loss due to piracy is $13.1 billion (US) worldwide, with a loss of $2.9 billion in the United States alone. Ultimately, software piracy results in the loss of tax revenues, jobs, and growth in the software industry. Laws and regulations throughout the world condemn software piracy. For example, in the United States, software piracy is punishable by statutory damages of up to $100,000 (US) for each work infringed, and may result in a felony conviction. Penalties for felony convictions include fines of up to $250,000 (US) and imprisonment for up to five year!
 * Types of Piracy**

Sources

"What Is Software Piracy? - A Word Definition From the Webopedia Computer Dictionary." //Webopedia: Online Computer Dictionary for Computer and Internet Terms and Definitions//. Web. 11 Jan. 2011. .

"Software Piracy Rate by Country. Definition, Graph and Map." //NationMaster - World Statistics, Country Comparisons//. Web. 11 Jan. 2011. .

"Software Piracy: What You Should Know." //World's Largest Virtual Community Welfare Organziation for Pakistanis -//. Web. 11 Jan. 2011. .