The fight against software piracy has entered its second phase, marking a significant shift from the earlier era of physical piracy to the current challenges of combating digital piracy.
Phase One: The Era of Physical Piracy
In the early days, software piracy involved physical media like CDs and DVDs. These discs, often accompanied by handwritten product keys, were sold on the streets and in shady shops. Anti-piracy efforts during this time focused on intercepting the distribution networks. Law enforcement agencies, market inspectors, customs officials, and other authorities worked to seize these physical goods and trace their origins. While this approach had its successes, it only scratched the surface, as the root of the problem—the creators of cracked software—remained elusive. Nonetheless, the tangible nature of physical piracy made investigations more straightforward compared to today’s digital challenges.
Phase Two: The Digital Piracy Era
Today, software (and other copyright-protected works) piracy primarily occurs online, with cracked versions of software distributed via the dark web. While the digital footprint offers opportunities for tracking, the anonymity provided by the internet creates significant obstacles. However, software producers have adapted by embedding mechanisms within their products. When users install pirated versions, they often unknowingly accept license agreements that authorise the collection of specific data. When users install pirated versions, they often do not read the detailed terms of the products’ license agreements they accept online, which authorise the producers to collect specific data evidencing the software misuse. This data includes details such as the computer’s name, user information, IP address, and MAC address, allowing software producers to identify and locate infringing users.
Ironically, many illicit users attempt to defend themselves by claiming illegal data collection. However, these defences are weak as users willingly agree to the terms when installing the software. Even in the absence of such agreements, long-standing legal principles assert that one cannot use a shameful act as a basis for defence. In addition, the GDPR and national privacy laws clearly authorise such data collection, having in mind that it is necessary and proportionate for pursuing the legitimate interests of software producers to combat the infringement of their copyright.
COVID-19’s Impact on Piracy
The pandemic significantly influenced piracy trends. With more people staying at home (globally), internet usage surged—rising 20% in just the first week of lockdown and reaching an unprecedented 50% annual increase in 2020. This digital boom exposed many new users to the misconception that online content is free, leading to a spike in pirated software, movies, and video games. Two main channels of piracy emerged:
- Pirated video games and movies: distributed in high volumes, millions often download these, but individual infringements are valued at a couple of dollars/euros.
- Cracked software in design and construction industry: these involve fewer users but significantly higher stakes, with individual licenses valued between EUR 3,000 and EUR 55,000. In corporate settings, infringements can escalate to millions of dollars/euros.
Steps Toward Resolution
Since 2021, copyright holders have intensified their efforts, combining educational campaigns with proactive engagement. They guide infringers on uninstalling pirated software and transitioning to legitimate usage. These efforts have borne fruit, with over 70% of contacted infringers reaching settlements. Unofficial data suggests that from 2021 to mid-2025, settlements in Southeast Europe exceeded EUR 5 million.
For those who refuse to settle, litigation becomes the next step. Expert witnesses regularly confirm the authenticity of collected data, and courts calculate damages based on unpaid licensing fees and other negative economic effects that software producers suffered. Defendants also face the public nature of court proceedings, with judgments published online and in media outlets, amplifying reputational consequences.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
