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Canadian Software Piracy and the Law

What is the law?

In 1988 Parliament amended the Canadian Copyright Act to expressly include computer programs in the definition of literary work, thereby clearly confirming that sofrware is intitled to copyright protection. Prior to this amendment, Canadian courts determined copyright protectionb of computer programs on a case by case basis.

The Canadian Copyright Act prohibits making unauthorized copies of software programs without the consent of the copyright owner. The exceptions are a user's right to make a backup copy or to adapt a program to another computer language to make it compatible with the user's computer. Both these exceptions are limited to a single copy for personal use and must be destroyed when the user is no longer the original owner. The Canadian Copyright Act also makes it an offence to knowingly produce, distribute or import for sale infringing copies of computer programs. Finally, effective January 1, 1994, a rental right was added to the Canadian Copyright Act in the case of computer programs so that the rental of such a program for gain constitutes copyright infringement.

What are the penalties?

If caught with pirated software, you or your company may face civil and criminal penalties. Civil remedies include an injunction, an award of damages and an accounting of profits. Criminal penalties for copyright infringement include a fine of up to $1 million*, a jail term of up to five years, or both.

What are your responsibilities as a user?

Your first responsibility as a software user is to purchase original programs only for your use. It is illegal to purchase a single set of original software to load onto more than one computer or to lend, copy or distribute software for any reason without the prior written consent of the software manufacturer.

Purchasers and users of counterfeit or copied software face unnecessary risks:

In addition, if you purchase or use software that is counterfeit or copied, you not only deny the software developer its rightful revenue, you harm the industry as a whole. All software developers, both big and small, spend literally years developing software for public use. A portion of every dollar spent in purchasing original software is funneled back into research and development so that better, more advanced software can be produced. When you purchase counterfeit software, your money goes directly into the pockets of software pirates. The company that developed it never sees a dollar.

Estimated level of software piracy in the Canada:

In 1994 it was estimated that Canada had a piracy rate of approximately 58%, meaning that for every 100 business software programs in use, an estimated 58 were illegally pirated copies. The resulting loss to the Canadian software industry in 1994 was over $345 million*.

Government commitment to law enforcement:

The Canadian government and the Royal Canadian Mounted Police have been active participants in protecting the rights of copyright owners. Canadian judges have also shown their intolerance of copyright violators by handing down increasingly severe damage awards against infringers.

Canadian Anti-Piracy resources:

If you know of software piracy or outlets where counterfeit products are sold, call the Canadian Alliance Against Software Theft (CAAST) Anti-Piracy Hotline at 1-800-263-9700 to report your concerns. If you would like more information about software piracy in Canada, please contact CAAST at Station A, P.O. Box 6272 Toronto, Ontario, M5W 1P7.

If you would like more information about software piracy in other countries including the United States, please contact the Business Software Alliance (BSA) Anti-Piracy Hotline at 1-800-688-BSA1 (2721), or by writing to the BSA at 2001 L Street, NW, Suite 400, Washington, D.C. 20036, U.S.A.

In addition, both organizations have materials and audit tools available to help individuals and companies better manage their software use.

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