Illegal Software vs. Improper Licensing

A BSA study found that 53% of software installed on computers in Latvia is not properly licensed. This increases the risks of hacker attacks and data loss [1].

Three things:

1. Windows purchased at a shop, which is mostly OEM, will also not be "properly" licensed, because OEM is intended for purchase only with a new computer.
2. If BSA read Microsoft's "User Agreement" more carefully, they would conclude that Microsoft takes no responsibility for data loss during use of the program. Therefore, whether a program is "properly" or "improperly" licensed in no way protects against the risk of data loss.
3. Hackers attack systems that contain valuable data, not your home computer with nothing on it. They mostly exploit weaknesses in the programs themselves - not whether the software is "properly" licensed or not.

What BSA omits:

1. Software of "suspicious" origin, and even more so licence key generators (which come bundled with it), will with high probability contain some kind of computer virus (otherwise, how do you think some unknown entity would have bothered creating it?). Moreover, if Windows was purchased legally but some other program obtained through "suspicious" means is installed, a "properly" licensed Windows will not protect against a virus entering the system.
2. Software obtained through "suspicious" means often cannot receive updates. If that is Windows, it cannot receive "patches" for the vulnerabilities that viruses and hackers exploit. This means these holes already exist in Windows at the time of purchase, but are patched through updates.

It should be noted that licensing policy (especially Microsoft's) and the diligence of local copyright watchdogs is often difficult to understand.

[1] For example, OEM can only be purchased with a new computer. For a while it could be purchased with a computer component, but not, for example, a mouse. Then they decided it could only be purchased when a significant component changes, such as the motherboard being replaced. However, this created another problem: if a computer's hard drive fails, a new copy of Windows must also be purchased.

[2] A common problem was with Windows XP Home. A company ordering computers would logically choose the cheapest Windows, i.e. Home. However, in the view of copyright watchdogs (and presumably the licence terms) Home may only be used by home users, making the software "improperly" licensed. A home user is one who does not conduct commercial activity on their computer. If you decided to work from home rather than the office for a while, or use your personal laptop for work purposes, then in the copyright watchdogs' view you would need to purchase Windows XP Professional. It goes without saying that you will be able to read the licence conditions only after you have already purchased the software, unless the seller is astute enough to warn you of usage restrictions beforehand. Software is precisely the kind of product that cannot be returned within 14 days (though this right has recently been introduced and applies to private individuals).

[3] A few years ago, local copyright watchdogs held that software was not "properly" licensed (i.e. illegal) if a special sticker on the computer box was absent or worn off. But that alone is not enough - a payment document must also be producible. Latvian law stipulates that invoices must be kept for only 5 years, but other accounting documents for 10 years. From this it must be concluded that computer software automatically becomes illegal after 5 years.

[4] From a copyright perspective, purchased software cannot be sold or transferred to another party. This is particularly important for companies to know, as one LLC can sell computers to another, but not the software.

Conclusions:

1. Even if you purchased software from a well-known shop and properly prepared payment documents, this still does not guarantee that your software will be considered legal by copyright watchdogs.
2. "Improperly" licensed often means illegal, and to remedy this there will be no choice but to purchase the same software again.
3. The legality of a program and "improper" licensing are different concepts. For example, Windows purchased in a shop (it can be activated), but the receipt has been lost (therefore - illegal). However, from the copyright watchdogs' perspective this amounts to the same thing, and carries a penalty - and upon reaching some threshold, even criminal liability.
4. A computer will also be "illegal" if it contains illegally held copyright objects, for example audio or video files. This particularly affects Apple and Linux users, who mistakenly believe that the legality of the operating system is sufficient. Illegal audio and video files in the eyes of copyright watchdogs can turn out to be considerably greater "damages" than any individual program.

[1] BSA: 53% of software on computers in Latvia is unlicensed - http://www.tvnet.lv/tehnologijas/nozares_jaunumi/515977-bsa_53_programmaturas_datoros_latvija_ir_nelicenceta