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Software pirates face brig time
MSNBC ^ | March 21 | Lee Gomes

Posted on 03/21/2002 1:30:19 PM PST by Bush2000

Critics say punishment for ‘recreational’ piracy is too harsh

By
THE WALL STREET JOURNAL

March 21 — The U.S. software industry says it has a big problem, and it believes it has a solution: putting Robin Rothberg and some of his friends behind bars. Not everyone agrees.


MR. ROTHBERG, a 34-year-old Boston-area computer consultant, was for a year or two around 1997 a leader of “Pirates With Attitude” — an online software-piracy group. The Pirates — like hundreds or even thousands of other groups on the Web — do for software what Napster did for music, making programs such as games and expensive financial software available for free. No money changes hands, and the groups are mostly hobbies for members.

In 1997, after industry lobbying efforts, Congress made this sort of “recreational” piracy a criminal offense; previously, it was only a civil violation. Swapping more than $2,500 in software, regardless of the circumstances, became punishable by as much as three years in jail. Mr. Rothberg and 16 other Pirates With Attitude are the first big group of people to be faced with jail time under the law.

They were arrested in 2000; most pleaded guilty last year, and will be sentenced next month by U.S. District Judge Matthew F. Kennelly in Chicago. Many are expected to be given probation, but the government seems to be gunning for Mr. Rothberg and a few others, who could be sent to jail for more than two years.

The software industry describes the crackdowns as a much-needed step to deal with a rampant and costly problem that grows worse every day. “We feel the threat of jail time provides a greater deterrent,” said Mike Flynn, who heads up antipiracy efforts at the Software and Information Industry Association.

But many people see the “criminalization” of recreational, or noncommercial, piracy as part of a disturbing trend. “The penalty is completely disproportionate to harm that is caused,” said Marci A. Hamilton, a specialist in copyright law at the Benjamin N. Cardozo School of Law at Yeshiva University.

Selling pirated programs has always been regarded as a serious criminal offense. But recreational piracy — almost as old as the PC — was long treated as a civil matter, with those caught potentially receiving fines but not jail time. In convincing Congress to change the law, the industry said that even noncommercial piracy was expensive, pointing to 130,000 jobs and $1 billion in taxes it said was lost due to all forms of piracy.

No one in the debate thinks that stealing software should be condoned. The bone of contention is whether the punishment fits the crime. The music industry’s campaign against Napster has been conducted entirely through civil, as opposed to criminal, courts; critics say the software industry has the resources to do the same thing.

With software-industry trade groups cheering on the arrests, the courts are likely to see more such cases. In December, federal agents seized hundreds of computers in another big bust, this one involving a group called “DrinkOrDie.”

The fact that people now face jail time for what had for years been a civil offense is another indication of the growing power of copyright owners — not just software companies, but also the music and movie industries. These powerful lobbies are increasingly getting their way in Washington.



In 1998, for example, Congress extended copyrights by 20 years after heavy lobbying by companies like Walt Disney Co., which was worried about losing copyrights on Mickey Mouse and other icons. On account of the 1998 Digital Millennium Copyright Act, a programmer was kept in jail without trial for three weeks last year simply for writing some decryption software. And the entertainment industry is now lobbying Congress for it to force PC makers to fundamentally redesign computers to make some kinds of digital copying physically impossible.

“Things have tipped too far,” said Miriam Nisbet, legislative counsel with the American Library Association, which often testifies on copyright issues. “We are very much for protecting authors, but some sort of balance is very important.”

The software industry justifies the tough new laws by citing the economic harm it says it suffers from piracy. Many of the industry’s claims, though, don’t appear to bear close scrutiny. The industry often says, for example, that well more than 100,000 jobs are lost every year due to piracy. It comes up with that number through extrapolation: that if the industry would have sold, say, 20% more software had it not been for piracy, then it would also have had 20% more employees.

Timothy F. Bresnahan, a Stanford University economist, dismissed the analysis as “goofy.” “No industry executive would make that mistake,” he said. The economic analysis about piracy was prepared by the International Planning and Research Corporation; the group, which works as a consultant to software groups such as the Business Software Alliance, said it stood by its analysis.

The arrests tend to take up considerable federal resources: The DrinkOrDie bust came after a 14-month investigation involving multiple federal agencies. The busts are usually billed as major advances against computer crime. But some security experts, such as Lois Jacobson, chief executive of MIS Training Institute, a Framingham, Mass., security operation, wonder if law-enforcement resources wouldn’t be more effectively used against potentially more serious problems, such as corporate computer break-ins.

Also, the law requires judges deciding piracy cases to treat every copy of a pirated program as a lost sale, even though many people in the piracy world are students who couldn’t afford to buy the programs they are downloading.

The names of the software-piracy groups conjure images of anarchy-loving hackers. But the members typically turn out to be college students or middle-class professionals, often in the computer industry, with no other criminal records. All say they would have halted all of their trading had they been served with a civil warning.

While not defending what they did, several Pirates facing sentencing say there were extenuating circumstances — another reason they question if jail time is appropriate. And like many of those arrested, T. David Oliver of Illinois showed off racks of software he purchased legally at regular prices while a group member. Among the programs were copies of the Linux operating system — which can be had for free, quite legally.


TOPICS: Business/Economy
KEYWORDS: softwarepiracy; techindex

1 posted on 03/21/2002 1:30:19 PM PST by Bush2000
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To: tech_index
bump
2 posted on 03/21/2002 1:30:36 PM PST by Bush2000
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To: Bush2000
MR. ROTHBERG, a 34-year-old Boston-area computer consultant, was for a year or two around 1997 a leader of “Pirates With Attitude” — an online software-piracy group.

What a sniveling assmunch. I hope he likes being bought and sold for a pack of smokes in the big house. When Grizzly forces him to "pick up the soap", I wonder how that will change his "attitude".

I wonder how he'd like it if someone stole his 88 Subaru (est value $2500) just 'cause they didn't think that Rothpunk had legitimate ownership of it. Or has a problem with the concept of ownership itself.

Hang 'em high! These idiots make me sick.
3 posted on 03/21/2002 2:52:29 PM PST by Rate_Determining_Step
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To: Bush2000
The arrests tend to take up considerable federal resources

Didn't somebody report here that Clowntoon directed the FBI to shift resources from counter-terrorism to copyright enforcement?

4 posted on 03/21/2002 2:57:27 PM PST by steve-b
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To: Rate_Determining_Step
I wonder how he'd like it if someone stole his 88 Subaru (est value $2500) just 'cause they didn't think that Rothpunk had legitimate ownership of it.

If it's parked on a public street, isn't it public domain?

5 posted on 03/21/2002 3:16:59 PM PST by RogueIsland
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To: Rate_Determining_Step
Hang 'em high! These idiots make me sick.

Agree.
6 posted on 03/21/2002 3:48:02 PM PST by Bush2000
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To: Bush2000
What a crock. These "hard core" criminals could do the exact same thing with inc. after the names and only face civil penalties. It's nice to see both big government and big business tag team and screw Americans. No doubt about it, these guys committed crimes and should pay for it. However, the exact losses are HIGHLY debatable and this whole "Lets make an example" is dangerous. The punishment should match the crime and jail time is too extreme.
7 posted on 03/21/2002 7:29:08 PM PST by AaronAnderson
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To: AaronAnderson
However, the exact losses are HIGHLY debatable and this whole "Lets make an example" is dangerous. The punishment should match the crime and jail time is too extreme.

Tell that to the folks who have lost their jobs due to stolen revenue.
8 posted on 03/21/2002 8:09:43 PM PST by Bush2000
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To: Bush2000
Where are the numbers? If any company wanted to they could find any software they want for free. However, they don't because it is illegal and they will be forced out of business. Tell these guys that they have to pay for the software they help pirate, let's say 100k, with a promise to double it if they do it again, and you are going to honestly tell me that they are going to be repeat offenders? This double standard for big business and big government is outrageous. Intel can steal alpha technology and get fined, bob the schools tech can install windoze on hundreds school computes and the school gets fined, but heavens forbid joe in college pirates office, he deserves to go to hell let alone receive a long prison sentence. This idea of "examples" is BS. I don't need the governments or big business scare tactics. That's what the taliban do. The next time M$ gets sued for patent infringments and loose Bill Gates should go to jail. Then I bet you would change your tune ;)
9 posted on 03/21/2002 9:14:16 PM PST by AaronAnderson
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To: AaronAnderson
This double standard for big business and big government is outrageous.

Yep. It's true. Most corporate and government "crimes" are dealt with in civil court; however, Enron is a pretty good example where some very high-level staffers are going to be criminally prosecuted for fraud, destruction of evidence, obstruction, and other serious crimes. I think the basic problem with corporate violators is that (a) incorporation does provide some personal immunity from liability and (b) individual culpability is hard to prove; hence, corporate officers are rarely prosecuted except in the most eggregious circumstances (ie. Enron).
10 posted on 03/21/2002 9:40:03 PM PST by Bush2000
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To: AaronAnderson
...bob the schools tech can install windoze on hundreds school computes and the school gets fined, but heavens forbid joe in college pirates office, he deserves to go to hell let alone receive a long prison sentence.

Incidentally, I don't believe the existence of a double-standard should relieve the "college pirate" in any way from prosecution. There have always been huge double standards for criminal offenses. I mean, take a look at the sentencing for a guy who embezzles $100K from his company and a guy who robs a gas station for $100. It's more likely that the gas station holdup man is gonna see some very serious time. Not true for the embezzler. Same deal with illegal possession of powdered cocaine versus crack cocaine. Is that fair? No. Not at all. Does it matter? No. Not at all.
11 posted on 03/21/2002 9:43:34 PM PST by Bush2000
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