Is Counterfeit Software Dangerous?

Software publishers have an incentive to create quality software that people will use and recommend, but software counterfeiters are not burdened with the same incentive. Many counterfeiters make money from capturing and selling users’ personal details, or from misleading users to click on adverts or buy useless products. With no desire to please customers, counterfeiters are free to make money from underhand tactics. 

Malicious code

A 2006 study by IDC (News - Alert) showed that around 25 percent of counterfeit software attempts to install malicious code. And research by Media Surveillance found that counterfeit software is sometimes used to make the host computer part of a botnet, where your computer can be directed to complete nefarious tasks, like spamming. To avoid the risk, you should avoid counterfeit software altogether, explains Microsoft’s (News - Alert) Matt Lundy. “It is simply not worth putting your personal and confidential information at risk to save a few dollars on software; it can cost much more in the long run.”

Technical support

If you have a technical problem, you can’t contact the software publisher when you use counterfeit software. You’ll be left to troubleshoot issues on your own, which can be time consuming and expensive. Additionally, certain problems might be impossible to fix without technical support, so you could lose critical data or your business might grind to a halt until you buy new software.

Bad business

A Harrison Group study found that counterfeit and unlicensed software severely disadvantages businesses. Businesses are around 75 percent more likely to suffer failures lasting more than a day and around 75 percent more likely to suffer data loss, when compared to their peers that use properly licensed software. Most businesses judge that it’s not worth assuming the extra risk inherent in counterfeit software, because they could lose millions of pounds if they are unable to operate for just one day. A loss of data could even lead to a company going out of business, so it’s not worth the money saved. 

Legal

Counterfeit software can leave you exposed to dangerous legal liabilities. You could face criminal charges for intellectual property theft, and you could also be subjected to civil action from the software publisher. Even if you are unaware that you’re using counterfeit software, you will still be culpable in most countries. Businesses also face the potential wrath of regulators if they lose customer data, so they must ensure they use legitimate software to protect the privacy of their customers.

John Browne is VP of Sales and Marketing at Wibu-Systems USA, a global leader in software anti-piracy and licensing solutions.