SIIA Fights Software Piracy With Online Certification
Keith Kupferschmid, the SIIA's senior vice president for IP policy and enforcement, says for years the organization has been working on ways to tackle the problem of pirated software resold on auction sites. "We were banging our heads against a wall trying to come up with a solution for this problem," he says.
SIIA's Certified Software Reseller (CSR) program offers resellers a new tool to build trust with their customers, Kupferschmid says. By signing up to be an SIIA certified reseller, companies must agree to sell only legal software on eBay and other online auction sites. After signing up, a reseller can then use the SIIA's certification logo on their auction page. If a reseller is found to be dealing in illegal software, the company faces a $10,000 per auction, in addition to any copyright infringement charges.
"This is another way to help consumers distinguish legal from illegal software," says Kupferschmid. "What we're trying to do is educate buyers. If the auction doesn't contain this logo, think twice about using this particular seller." He admits it remains to be seen whether or not the program will be a success—no reseller has yet signed up for the program. However, Kupferschmid says some resellers have expressed interest, and says the program benefits everyone.
"The more sellers out there using the mark the better it will be for eBay, the buyers and the software industry," he says. "It will more readily distinguish those who are selling legal software." Kupferschmid says eBay largely turns a blind eye to software piracy, something the SIIA has been working to change. "In our discussions with eBay to ramp up their piracy enforcement, they have not been cooperative enough," he says. "[They're] unwilling to take the additional steps necessary to crack down on pirated software."
One example, he claims, is eBay's unwillingness to allow copyright owners to post in on the Web site's feedback forums if the product sold is pirated. Kupferschmid also takes issue with eBay's policies toward multiple user accounts, and the proliferation of the "Buy-It-Now" instant auctions and short-term auction windows. "They said they would prevent software auctions from lasting only one day or three days," he charges. "They haven't."
Short-term auction lengths and buy-it-now options are critical for vendors of pirated software, because it allows companies to make the sale quickly and disappear before they're caught. Kupferschmid estimates 75 percent of the illegal software on eBay is buy-it-now. "If you're selling pirated software you want to sell it quickly and not get caught," he says. "I can guarantee you if you go on now you'll find these auctions."
An eBay representative did not return calls for comment.
He says while he personally doesn't buy software online, his colleagues do—it's part of their job. "They purchase a lot of counterfeit software," he says. "We're out there doing sting operations—that's how we determine who we should be suing."
The CSR agreement actually evolved out of the SIIA's Auction Litigation Program, which monitored eBay and identified egregious offenders. When determining the severity of the $10,000 breach-of-contract penalty for CSR, Kupferschmid says the organization took into account the damage that would occur to the logo itself in case of a breach of contract. "The logo's primary if not sole purpose is to direct buyers to these particular sellers," he says.
Kupferschmid is quick to point out this is not a program to safeguard the interests of large software companies. A recent flap involving Microsoft and the Business Software Alliance has raised doubt among small businesses as to where these organizations' loyalties lay.
Assuaging those suspicions was "a large part" of the discussion when the program was being organized, Kupferschmid says. "We will certify anybody who is willing to sign the terms of the agreement," he says, adding that resellers need not be authorized resellers of a particular product in order to qualify. "All we care about is that they sell legal software."