Software piracy is one of the worst problems facing the software industry, and the piracy rate around the world is rising and in 2008 alone software industry lost more than US$ 5.3 billion due to software piracy, and in the same time frame Malaysian software industry lost around US$ 368 million.
Many previous researches concluded that software piracy is common among college students, preventive and deterrents techniques were no effective in combating the piracy problem, therefore there is a great urgency to identify the factors that leads to software piracy in order to formulate better strategies to overcome the problem.
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This research identified six variables that influence the intention of college students to use pirated software; they are Gender, Age, Value Consciousness, Attitude, Peer pressure and Novelty seeking.
A survey was conducted with students who are attending colleges in Selangor, Malaysia, with a total of 247 respondents participated in the survey. The study found out that Value consciousness, Attitude, Peer pressure and Novelty seeking are the factors that has significant relationship with intention to use pirated software, however gender and age was not found to be significant factors that influence the intention to use pirated software.
Software piracy can be considered as robbery, an infringement of copyrights, and anything that is copyrighted can be pirated and almost anything worth copying is worth pirating (Honick and Craig, 2005).
Independent study sponsored by Business software Alliance (BSA) shows that software piracy is the worst problem that software industry faced, BSA defines software piracy as the unauthorized copying or distribution of software’s. When the end users purchase the software they do not become the owner of the product, however they have the rights to use the software under the terms and conditions oppose by the copyright owner of the software.
According to Microsoft there are 5 basic type of piracy,
1- End user copying: Here individuals or organizations copy and distribute unlicensed copies of the software or purchase a licensed copy and use beyond the allowed limits.
2- Hard disk loading: this is practiced by computer manufacturers who use a legal copy of a software to install as many PC they want and sold to end users who are not aware of the wrong doing
3- Counterfeiting: software and its packaging are illegally produced in a large scale.
4- Online: Online piracy occurs when the end user download the software from an online source without the permission of the copyright owner.
5- License misuse: software distributed with a discount rates for the high-volume customers,
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