3.+Copyright+and+Software

· Why do software authors need to be protected by copyright?

"When a programmer or computer artist sells copyright in a work, however, access is obviously not an issue if the same person later executes a similar work. To avoid problems, it is important that the creator and purchaser of the copyright reach **clear agreement** about such matters. It is important for computer artists and authors to understand that a work does not have to be identical to infringe copyright in an earlier one. The legal test of infringement is "substantial similarity" -- which translates (roughly) into whether an ordinary observer would recognize a work as copied in whole or in part from an earlier one. " (Thomas G. Field, 2009)

"Definition of “computer program”Computer programs have been protected as “literary works” in Australian copyright law since 1984. The Digital Agendaamendments introduced a new definition, based recommendations by the Copyright Law Review Committee (CLRC) in its 1995 report Computer Software Protection:8 The CLRC’s reasons for its recommendation were as follows: The Committee is of the view that any definition of “computer program” should not be unduly restrictive offuture developments in programming languages and should be clearly comprehensive in its coverage. TheCommittee is mindful that the position adopted in Australia in relation to the extent of the protectionafforded to computer programs should, as far as possible, be consistent with that adopted by our majortrading partners. The Committee believes that the US definition, by using the words “to be used directly orindirectly in a computer”, covers programs written in source code, object code and microcode. Accordingly,it disposes of any uncertainty whether protection is limited to when the program code is visible. Also, theinclusion of the word “statements” clearly extends the scope of the definition to cover programs written indeclarative programming languages. The definition omits any requirement that the computer be digital.Finally, while the definition does not include a reference to “expression of” preceding “a set of statements orinstructions”, the Committee believes that the requirement of originality for copyright to subsist in a workin s.32(1) of the Act would result in the expression–idea dichotomy being applied to computer programsthus defined, as it is to any other work. Furthermore, the Committee notes that the definitions of other itemsconstituting works, eg “drawing”, which is a form of artistic work and which includes “diagram, map, chartor plan”, do not include “expression of”.10Special exceptions for use of computer softwareExceptions allowing the use of computer programs for particular purposes came into force in 1999. They were intended toimplement recommendations in the CLRC’s Computer Software Protection report. These exceptions relate to:• “normal use” of a computer program;• studying the ideas behind a computer program;• making interoperable products;• correcting errors;• testing security; and• backup copies.The Digital Agenda amendments made some changes to these exceptions, including a change intended to ensure that theexceptions apply to data used by a computer program, as well as to the program itself. " (Report on Computer Software Protection, 2005)

· How does software piracy become a cost to the Australian computer industry each year? · What is the result of software piracy

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"The [|copyright infringement] of [|software] (often referred to as software piracy) refers to several practices which involve the unauthorized copying of computer software. Copyright infringement of this kind is extremely common. Most countries have copyright laws which apply to software, but the degree of enforcement varies. After a dispute over [|WTO membership] between [|Iran] and [|USA] led to the legalization in Iran of the unconstrained distribution of software (see [|Iran and copyright issues]), there have been fears[[|who?]][[|citation needed]] that world governments might use copyright politically. The effects of copyright infringement on digital culture [|Peer to peer] (P2P) [|file sharing] technologies have lowered the threshold of knowledge needed to acquire massive amounts of information. Large networks have been created which are dedicated to share knowledge, but these same networks can be used to infringe copyright. Identifying infringing use can be difficult, since the users can modify the name and content of material being shared. Rise of quality in free alternative software also helps to lower the use of copied software worldwide. Illegally copying software is seen by some software producers as a "lesser evil" than actually buying or illegally copying a competitor's software. Jeff Raikes, a [|Microsoft] executive, stated that "If they're going to pirate somebody, we want it to be us rather than somebody else." He also added [|[2]] that "We understand that in the long run the fundamental asset is the installed base of people who are using our products. What you hope to do over time is convert them to licensing the software." [|Traian Băsescu], the president of [|Romania], stated that "piracy helped the young generation discover computers. It set off the development of the IT industry in Romania."[|[3]] Microsoft admits that piracy of its Windows operating system has helped give it huge market share in China that will boost its revenues when these users "go legit." Bill Gates said, "It's easier for our software to compete with [|Linux] when there's piracy than when there's not."[|[4]] He has also said in reference to China: As long as they are going to steal it, we want them to steal ours. They'll get sort of addicted, and then we'll somehow figure out how to collect sometime in the next decade. —[|Bill Gates][|[5]]" (Wikipedia, Copyright infringement of software, 2010)

  ="Australia bucks global software piracy trend= Software piracy grew last year, accounting for 41 per cent of all PC software installed, with losses to companies estimated at $US53 billion, the Business Software Alliance said. Worldwide piracy rates rose from 38 per cent of software in business and home computers in 2007 to 41 per cent in 2008 despite successes in fighting piracy in China and Russia, according to the study done by market researcher IDC for the BSA. In Australia, 26 per cent of all PC software is pirated, IDC found. This is a marginal drop from the 28 per cent rate reported in the previous year. Global PC software sales grew 14 percent last year to $US88 billion. While there was progress on piracy in some countries, with rates down in roughly half of the countries surveyed and flat in one-third, overall "the dollar figure is actually up," said Robert Holleyman, president and CEO of the BSA. Holleyman said that while U.S. piracy was about 20 per cent of the total market, the lowest in the world, it was a major problem because more software was sold in the United States than anywhere else. Holleyman said much of those losses came from small businesses that use unlicensed copies of popular software programs. They might have 50 PCs but only pay for rights to run the software on 25 of those machines. "The U.S. has the highest single dollar loss," he said. China's piracy rate had dropped from 90 per cent of all software in 2004 to 80 per cent last year while Russia's piracy rate dropped five percentage points in the past year to 68 per cent, the study found. The progress in China came because the government decided to use only legitimate software, because internet service providers cooperated in taking pirates off the internet when asked, and because of other steps, said Holleyman. The study found seven countries with piracy rates of 90 per cent or higher: Georgia, Bangladesh, Armenia, Zimbabwe, Sri Lanka, Azerbaijan and Moldova." (Australia bucks global software piracy trend, 2009)