Last year, the Business Software Alliance (BSA) shut down more than 16,000 auctions offering unlicensed or pirated software products, most of which were advertised on popular auction sites. Unfortunately, some online sellers post ads offering what they claim is legitimate software, but actually provide consumers with pirated versions once the transaction is complete. 

As BSA has learned from the Internet fraud reports submitted to its Cyber Safety Web site, www.bsacybersafety.com/fraud, there are many risks involved with buying software online.   First, there is serious legal risk -- software piracy is against the law. And, users won't get upgrades, technical support, manuals or documentation.  There will be no assurance of quality or reliability of the software and consumers may expose their network to viruses and security breaches. 

Scores of consumers, just like you, have written to tell us about how they became software piracy victims. BSA provides tips to help consumers recognize online shopping risks and use the Internet safely. Don’t get “duped”—educate yourself about having a safe online shopping experience.

1) Trust Your Instincts 

Check the online seller’s price against the estimated retail value of the software.  Whether it is being sold as new or used, if a price for software seems “too good to be true,” it probably is.

“I Was Duped…” Two consumers who bought Adobe’s Dreamweaver 8—which typically retails for $400—on a popular online auction site for $92 and $116, respectively, received surprises when their software arrived.  When the first man’s software was delivered, its lack of authenticity was immediately obvious. “The product I received was on a grocery store label CD-RW,” he said in his report.  The second consumer, a man from Florida, did not realize that his software was pirated until he “contacted the software company [Adobe] to register the product.”

Others have also reported paying as little as $10 or $20 for high-end software, only to find that the products delivered were obviously unlicensed copies.

2) Make Sure It’s Authentic

Be suspicious of software products that do not include proof of authenticity such as original disks, manuals, licensing, service policies, and warranties. 

“I Was Duped…” When he tried to register a computer game he purchased for $16, one consumer from California immediately realized there was a problem. “The CD key was banned by [the game company] PunkBuster and when I contacted them about it they informed me that the key was in use by 40 other people,” he said. Another consumer from Florida received her software in a plain brown package. “There was no return address. Inside were plain white discs with handwriting on them… [and] typed out instructions for how to register the software [illegally],” she reported.

Another consumer from Texas was instructed to take unusual action to register his purchased product. “To get the serial number to activate the product, I had to use the keygen.exe software included on the disk. I did some research on the keygen.exe program and learned that it is commonly used for software piracy,” he said.

3) Read the Label

Beware of products that do not look genuine, such as those with handwritten labels. 

“I Was Duped…” Many consumers have complained of receiving software that was obviously pirated, oftentimes on store-bought CD-Rs with handwritten titles, no registration keys or no manuals.

After paying $155 on eBay for Adobe Photoshop CS (software that normally retails for about $650) a man from Texas learned that the seller’s account was cancelled a few days later. After numerous e-mail complaints to the seller which were not returned, he was instructed by eBay to wait 10 days from the auction close and then file a complaint with PayPal. PayPal was able to contact the seller, and he eventually received the software in the mail. “…[I]t was easy to tell it was pirated,” he said. “It was in a thin case with just a CD-R and only a hand written note on the disc itself about what it was. When I opened the package and saw that it was pirated, I immediately emailed him requesting my money back.”

4) Beware of Back-Ups

Take special care to avoid sellers offering to make “back-up” copies.  This is a clear indication that the software is illegal.

“I Was Duped…” In addition to back-ups, many sellers often claim they buy overstocked software in bulk from retailers in order to resell it online. This usually translates to pirated software.  A consumer from North Carolina bought Adobe Creative Suite 2 Premium edition for Mac, a product that retails for $1,200, for $925, only to receive a pirated copy that he could not register. “I called the seller and he stated that he buys excess software from many places.” The seller told the consumer he had no idea where he got this particular software from.” No help was offered to the consumer.

Also be sure to check the software version. Many people complained they received educational or promotional versions of software when they thought they purchased a full or standard version. Another consumer from Pennsylvania reported that he paid $819 for a product he believed was Adobe Creative Suite 2 Premium. “I received Adobe Creative Suite 2 Premium Educational version, which costs half of what I paid and is only registerable to students and teachers,” he reported. He then filed an Ebay dispute, which lasted for months. “I escalated the dispute,” he continued. “I paid by check and therefore I am only eligible for $175 reinbursement from Ebay, which I described as petty cash and not even worth the trouble compared to the money I’ve lost.”

Another woman from Pennsylvania purchased Adobe’s Macromedia MX2004. “When I installed the software, it was not for commercial use. I called Adobe to check the serial number and they said it was a NFR [not for resale] Educational version,” she stated.

5) Steer Clear of Compilations

Be wary of compilations of software titles from different publishers on a single disk or CD.

When buying more than one software program, be sure that each program is on a separate disk. The indication that only one CD will be sent with the purchase of two or more different software programs is a sure sign that it is pirated.

6) Get the Seller’s Address, if Possible 

Remember that if you cannot contact the seller after making a purchase, you may have no recourse if the product turns out to be pirated.

We received numerous reports about sellers who were inaccessible as soon as the sale and payment was final. Be wise: obtain the seller’s contact information.

7) Keep Receipts

Keep as much information as possible regarding the transaction and the seller. Print out a copy of your order number and sales confirmation and file them for your records. This is an important step that can help protect you until you verify that the software is legitimate. This information will help to build your case if the product is pirated and further action is needed with the auction site, payment facilitator site, or software developer.

8) Be Careful When Crossing the Border

Be cautious when dealing with software sellers in other countries.  The physical distance, differences in legal systems, and other factors could complicate matters if the transaction goes awry.

“I Was Duped…” A Canadian consumer purchased a full version of Microsoft ME, which normally sells for about $100, for $19 from a Dutch seller on eBay. “eBay notified me the Dutch auction had been pulled 4 days after I won and paid for the auction. Seller was no longer a registered user,” she said. She later received the software in the mail, but it was a pirated copy titled “Windows ME corporate autoread.”

9) Look for a “Trust Mark”

Look for a “trust mark” from a reputable organization, such as BBBOnLine, to make sure the online retailer is reliable and has a proven track record of satisfying customers.  If in doubt, conduct Web searches about the Web site in order to determine its legitimacy and check for a Better Business Bureau report at www.bbb.org.

10) Do Your Homework

Before making a purchase, do as much research on the seller or vendor as you can, especially if there is no information available with the BBB or other consumer-protection organizations.

Sellers may lie in their description of the item and send you an unlicensed version of a software program. Check the seller’s rating or feedback comments when on an auction site. Most legitimate sellers will have dozens of responses from other users, and if they are reputable and reliable, nearly all should be positive. This is a good sign of what to expect from your transaction.

“I Was Duped…” A man in Oregon purchased what was advertised as Photoshop 7.0 on ebay. The description claimed that “The Photoshop 7.0 CD-Rom is a full version, not an upgrade, complete with serial number… and User Guide Book.” When he received the software, he said it did not come with any paperwork or a serial number. “I contacted the seller asking for the book and why there was no paperwork,” he said. “I was told the serial number is on the software disk in a text file.” The software was on a CD-R with a paper label and obviously pirated, even though the seller clearly stated in his description that this version would be legit with all the proper paperwork and manuals.

 

The effects of software piracy are very serious. Of the “duped” consumers who filed reports with BSA, very few have been reimbursed for their purchases. And of those who did receive money back—usually after devoting much time and effort to their claim—their refund often didn’t make up for the cost of their pirated item. If you become a victim of software piracy, please share your story with BSA to help other consumers protect themselves and have a safe experience when shopping online.  Reports can be made at www.bsacybersafety.com/fraud.

For more information about how to protect yourself and enjoy the full benefits of shopping online, visit BSA’s cyber safety Web site, www.bsacybersafety.com .