Slashdot Mirror


Fed Raids Software Pirates in 27 Cities

akiaki007 was among many who wrote in to say: "Check out this article on the New York Times (free reg, blah blah) site. The Feds have raided 27 cities in 21 states. Raid sites include MIT, UCLA, Purdue, Duke, UofO. Their main target was the group DrinkOrDie. 'This is a new frontier for crime,' Kenneth W. Dam, deputy secretary of the Treasury, said at a news briefing. 'The costs are enormous to both industry and consumers.' I better hide my burned Linux CD's. They might think it's some weird hacking tool."

20 of 1,172 comments (clear)

  1. ok.... by pcgamez · · Score: 5, Insightful

    I like how they say "billions in software." I wonder how much companies would really get from any of those people. Most people who pirate software can't aford it in the first place. I mean, who can afford to spend 500 on office and another 500 on Adobe programs just for a semi-intermediate user.

  2. My Favorite Quote by SnatMandu · · Score: 5, Insightful
    Philip Bond, the Commerce Department's under secretary for technological policy, said cyber-pirates steal an estimated $12 billion worth of technology and goods a year, according to the Business Software Alliance. American leadership in computers and software is "very much at stake" because of piracy, he said.

    Right... Because people pirate software, American companies are going to loose out to foreign companies, since software produced overseas is much harder to pirate. Oh yeah, and all those countries have more clout that the US government does when it comes to getting foreign governments to cooperate with enforcements efforts. Yep, American Leadership in Software Development is definatley at stake. Uh-huh. Yep.

  3. Note the campus raid component. by Anonymous Coward · · Score: 5, Insightful

    The numbers these groups throw around are bogus, and that needs to be repeated.

    Note that these raids occured on a number of campuses.

    Microsoft and law enforcement love to talk about the millions and billions lost to piracy.

    When they bust down some students door and find things like Maya, 3DSMax, and Windows Datacenter Server they go, whoops, we're out $250,000.

    But there is a fatel flaw in this argument. These are NOT lost sales. Students simply do not have the money to go out and buy a ton of high priced server software, though they may enjoy playing with it.

    And the low priced stuff a campus almost always as a Campus Select Open agreement for.

    The guy in China paying $5 for 200 programs worth $2 million? Same thing.

    This needs to be repeated. These numbers are often bogus. Things like drugs have real street value, so that's more acceptable when they value drug busts, and they actually track street prices carefully. Microsoft numbers hype is a distortion of the system.

    This reminds me of the $1 billion Microsoft offered to settle their private court cases. $800 million of it in their software. I doubt the marginal cost of supplying that software was $800 million (estimates are it would be around 20 or so) and they get a dream come true, take out apple their last competitor and drive their software into the education system to hook the next round of users.

    1. Re:Note the campus raid component. by alsta · · Score: 5, Insightful

      I am one of those strange guys that pay for what they use. I have two computers that have Windows 2000 on them and I upgraded my NT 4.0 license to Windows 2000 Server. I also bought CALs for the clients. Why? Because my son and my wife use these services. I don't, but that's another story. I am of the belief that one should pay for what one uses. Hell, I am one of those weirdos that actually paid for WinZip.

      I probably buy $1,000 worth of PC games every year at the very least. And every time it pisses me off to the point that I write the company in question asking them why the hell they are including copy protection on their CDs. Why can't I make a copy of a game that I bought for $50? Why are these companies charging me for a product that I am restricted to use with their original media? How about if I actually value the products that they pushed out the door? Perhaps I want to play the game (which requires the CD in the reader) off a backed up cheapo CD-R rather than the $50 original. Perhaps I don't want a jumbo scratch on my original? But these companies do not care. Why?

      The reason is very simple. The multi billion dollar software industry aimed at corporate computing aren't losing much money. The reason being, which has been properly mentioned, is that most people copying this software can't afford to buy it in the first place. Get over it. If they wanted to see some revenue from the public, they should drive "non-commercial" licensing much harder.

      But the gaming industry is different. They cater to entertainment needs of people in most ages and they have a very small margin. Activision can't charge $100 or $1,000 for a game however cool it may be. People will not buy it. But the $50 median is pretty much the breaking point. Hence they need to sell vast numbers of the game in order to make money on it. Add to that, that games are probably much more complex in terms of development than shoddy word processors are.

      Because these people cater to the public, they also want to restrict or make it harder, for the public to serialize copies of their products. Understandable. Id Software seems to have reached a smart deal. Instead of including a bunch of weird copy protection schemes that significantly hinder me from fair use, they use a key string which is validated on a server somewhere. That's it. No checking of what hardware it runs on and tying it to some specific configuration. Just make sure that the key is valid. And it works. Why is it that it is such a hard thing for other game vendors to understand this concept?

      Now what if piracy would stop all together? Would these companies stop being idiotic? Probably not, because it is somewhat of a second life line.

      I accidentally broke the CD with Half-Life on it. I called Sierra and asked for a new one, but they said that I had to pick up a new copy in the store. I asked why. They said that it was just as expensive for me to have them ship me a new copy, but that would add shipping charges as well. This is where I told them that I needed replacement media, NOT another "license" to play the game. The reply I got was "We're sorry, sir. But we don't replace CDs just because customers can't take proper care of the product they bought." Chicken and egg answer. In the end, the consumer (love that word which implies parasite rather than citizen) gets screwed.

      So some bright guy will now ask the question, why do I continue to buy games if I hate the companies that publish them so much? To tell the truth, I am not sure. But I suspect that I am a sucker for a good gaming experience, just like any other dude down the street.

      --
      Wealth is the product of man's capacity to think. -Ayn Rand
  4. Re:Oh? So then they finished the terrorist problem by Anonymous Coward · · Score: 5, Insightful

    You're right. All police activity that doesn't help fight terrorism should cease immediately and all freed resources should be redirected towards the War on Terrorism. We should only focus on one thing at a time.

    Look, just because you don't like a law doesn't mean you won't face the consequences if you break it. That's what civil disobedience is all about, taking absurd responsibility for an unjust law. What these idiots were doing was breaking the law hoping to never face the consequences.

  5. Re:Oh? So then they finished the terrorist problem by Anonymous Coward · · Score: 5, Insightful
    Because I thought we were still at war with terrorism.

    We are. Violating the DMCA is now an act of terrorism.

  6. A good thing? by jmd! · · Score: 5, Insightful

    Wiping out warez can only be a good thing for Linux and Free/Open Software. If people actually have to pay $600*workstations for MSOffice, they won't. I only wish XP's activation wasn't so easy to circumvent.

    A complete set of PC hardware goes for $250-$300 now... Windows XP + Office XP is $900. So you can have a new workstation for $300 running Linux, or, now that you can't pirate Microsoft's crap, the exact same machine, for $1200.

  7. Give me a break by Snodgrass · · Score: 5, Insightful

    An article is posted with the word 'Fed' in it and the Slashdot crowd is screaming the imminent doom and destruction of life as we know it.


    They broke the law. People who break the law are punished. We're not talking about people's rights being violated, we're talking about groups who know that what they do is illegal and are getting caught.


    If real life existed the way the /. crowd thinks it should be, we'd live in total anarchy.

  8. Re:Warez. by Calle+Ballz · · Score: 5, Insightful

    Software companies have very good lawyers who work out the numbers. When they say that 11 billion was lost due to software piracy, they estimate those numbers by only figuring "how much would we have made if every kid in America had their very own MS Windows Lease?". They use these make believe 'losses' as a tax fraud.. come on? wouldn't you love an $11 billion tax write-off?

    What is really sad is most of the software that is pirated is never worth the time it took to download it.

  9. They need to come back to Reality by antis0c · · Score: 5, Insightful

    My first rant, they constantly talk about how millions, even billions of dollars have been lost to Microsoft, Adobe, Macromedia, and more due to software piracy. Those numbers reflect if each and every person that stole a copy of that software or even used the copy of that software for 5 minutes and deleted it, would have actually purchased that software. They're working with phantom numbers and voodoo economics. I doubt even 1% of those people would have purchased that software. Software, like digital music, and anything else digital is data. It doesn't cost Microsoft money if I were to take their CD and copy it to another CD and give it to a friend. They haven't actually lost any money, especially if that friend weren't actually going to buy the product in the first place. I understand protecting intellectual property, and I am in no way saying what these people are doing is right, but what I'm saying is that you can't say the industry has lost billions of dollars to software pirates when half of the pirates and their users would have never purchased the software in the first place. Am I not allowed to purchase a lawnmower, mow my lawn, and allow my neighbor to use my lawn mower to mow his lawn?.. Hell all the people on my street use my lawn mower, in fact I could even charge for it, would anyone blink an eye at that? Would John Deere have the FBI do its dirty work and hunt me down for the sales it lost on all the people in my neighborhood?

    Second rant, On par with most of the Slashdot posts, why the hell is the FBI worrying about this in the first place? Lets see last I remember we are all suppose to still be on a "high alert" state for possible terrorist attacks. Somehow though, the FBI has the time, manpower, and money to go hunt these so-called criminals. Yet still, we have absolutely NO LEADS ON WHO WAS DISTRIBUTING ANTHRAX? Seriously, whats the count, 5 or 6 people have died from anthrax in the mail thus far, and the FBI doesn't have a single clue? It's been almost 3 months! Someone needs to straighten out their priorities.

    --

    ..There's a-dooin's a-transpirin'
  10. And what of the demand? by kafka93 · · Score: 5, Insightful

    Ah, once again everyone's content with hitting the suppliers without addressing the issue of demand; once again, there's a failure to realise that busts of this nature will do nothing but screw with the lives of a few kids who were just having a bit of fun.

    The piracy 'scene' doesn't actually have all that much to do with the software; it's about friendship, competition, coding, learning to write perl or set up a firewall, and it's about a sense of community. And it's a community that isn't going to go away, irrespective of the number of busts or the citing of (oftentimes ludicrous) figures as to its costs.

    I've found that many people who rail against software piracy will quite happily copy music from their friends, or tape videos from the tv and lend them out. I've also found that virtually everyone I've ever met is happy to ask for a copy of a piece of software when it suits their purposes. I've *also* found that most people involved in software piracy tend to buy a great number of computer games, and do genuinely subscribe to the scene's central tenet that if one enjoys the software, one should buy it.

    What do busts like this achieve? They're a publicity stunt to demonstrate that *something*, anything, is being done. They're an example of pandering to big business, of ignoring what the public actually wants and believes. They're a triumph of bad accounting and spin over real-life facts as to software sales. And, ultimately, they don't change anything: the pirates will continue to pirate, and the end users will continue to download the stuff. And a few kids will find their lives becoming very difficult.

    What we need is a little less hypocrisy. We need more people to admit that they copy games, that they lend cds to friends - and, hell, we need to question whether it's *really* the piracy that leads to the high prices, or whether in fact that's just traditional market forces at work. And pay attention: programmers are themselves very often pirates, at least in my experience. Perhaps I'm an evil man and live in an evil world. Or perhaps everybody's doing it, and a war on the supply is as fruitless as all of our other wars that fail to address the root of the problem.

  11. Re:Thats not the point. by Debillitatus · · Score: 5, Insightful
    The only effect it has, is on Bill Gates Salary. You must be a programmer. What? You think they will pay you more if piracy didnt exsist? Hell no, You'll make the exact same amount of money that you make now. The people who will get paid more are, Steve, Bill, and upper level management. NOT YOU!!!!!

    This is insane. By your logic, the amount of money entering an industry does not affect the salary of the people working in it. Therefore programmers make as much as artists, garbage collectors, ditch diggers, etc? No, of course not. Programmers can make tons of money for not so much work simply because the product they produce is worth a lot of money. End of story.

    Now, what you're saying is true, in the sense that once you've worked on a project, the amount of sales of that product in the future won't affect the amount of money you make now. But this is a horrendously simplistic viewpoint. When you work for a company, they're not paying you out of the money they will get selling the product you're working on. They don't have it yet. They're paying you the money they've made on previous products. And yes, me pirating M$ software today will affect the job prospect of M$ programmers in the near future.

    Sorry, kid, it's the way the world works.

    --

    Come on, give it up, that's

  12. Funny comments from companies, 10 yrs ago.. by tcc · · Score: 5, Insightful

    "Major Games costs 30-50$ each because there's not a lot of volume in sales, if there would be more sales, the price would go down dramatically"

    10 years later.. Major games, 30-50$... While the complexity and everything surrounding a game got more complex, the price tag is still the same.

    Same goes with a lot of high-end software.

    On another note,
    There are 3 takes , 2 extreme, 1 middle.

    Middle: extended kind of piracy (like trialware) or sometime students have to learn somehow, and school arent' always the best avenues, students can't afford Max, autocad, and blablabla, and when they find a job, the employer needs to buy a seat of that software that the student knows, so basically, in the end, the money gets pumped in the system. That theory is good IF the employer is legit and honnest. In that case, Govs needs to target companies (which are the one MAKING money out of the software) but not in a super-intrusive-will-take-3-days-to-go-thru-all-th e-stuff kinda way. unfortunately there's not a "best way" for this that would suit both the employers and the prosecutors.

    The other problem is sometimes cashflow (especially for startups) doesn't allow to blast the required "200,000$" in a single payment (run a software budget analisis for 10-15 employees, a server based on M$ and the basic tools required to do the job depending on what kind of company it is, and it runs up quite fast) Some people are honnest and try to catch up with the licenses (I knew 2 startups that weren't legal from the beginning and catched up over a year or 2 and became totally legit afterwards, ok of course I know also a lot of small companies that are producing off pirated software and that disgust me,

    but there's ONE point that I saw that made me think: the argument for one was to ban all the M$ products and buy 1 license of every software they were using, not 5 like required for every seat, the argument was "if we buy everything needed, we go bankrupt, I'd rather not be fully legal and have a job than being legal and broke (and no, these weren't companies that had 50 employees and making gazillion cash) , besides (they added), you cut on the salary of the employees to give some extra $ to uncle Gates's pockets, which doesn't create anymore quality jobs than I do."

    While I have mixed feeling about that, the conclusion we can get from this is: if there could be a leasing option or renting option and the system would be more flexible, maybe there would be less piracy and people would tend to be more legit.

    The 2 other points of view are "*everything* should be free" which shows how immature and short-sighted some people can be, and "everyone stealing software should get shot, there's 0.00 reason for copying a software, even if it's to try, to get a snapshot, to do backup copies, whatever, there's NO reasons"... heh.. no need to comment on that.

    --
    --- Metamoderating abusive downgraders since my 300th post.
  13. New World Order by ENOENT · · Score: 5, Insightful

    Here's a primer on how a government can attain total control of its citizens.

    For each dissident or somehow threatening group, perform the following steps:

    1. Turn the name of the group into a perjorative term. ("X")

    2. Hold numerous press conferences on the dangers "X" poses to society or to the economy.

    3. Create new laws to target some core activity of "X" that seems likely to be of no interest to non-X citizens.

    4. More press conferences on the widespread problem of violators of the laws created in step 3, and proposing harsh new penalties for such violators.

    5. Massive crackdown on violators of laws created in 3. For small and unimportant groups, all members may simply be thrown in an oubliette, or even executed. For larger groups, the threat of arrest may be used to compel individuals in whatever way is deemed necessary.

    That's it. This model works quite smoothly, as demonstrated by Stalin (too many groups to count), Hitler (Jews are the best known victims, but many others as well), McCarthy ("Communists"), and the Inquisition ("Heretics", "infidels", and others).

    Meet the New World Order. Same as the Old World Order.

    --
    That's "Mr. Soulless Automaton" to you, Bub.
  14. Piracy as a Tactic by neema · · Score: 5, Insightful
    Not all companies are trying to actually prevent piracy, mind you.

    It wasn't too long ago that Microsoft was pushing for it's products to get translated into Chinese and distributed to the country. It wasn't too hard to see the prospects of the software getting pirated; for every ten copies of software used in China, there is one sale. Actually, Steve Ballmer said: "If you're going to get pirated, you want them to priate your stuff, not your competitiors' stuff. In developing countries, it is important to have a high share of the piracy software."

    Guess what China is? That's right. A developing country. And once it hits "Free World" status, here comes the profits for Microsoft in a country that is already used to and dependent on it's software. Up until that point, Microsoft isn't really losing anything. Programmers for Microsoft aren't losing their jobs because of this, since the demand is still there, even if the supply is being sought out for free.

    Of course, this doesn't mean I'm supporting piracy, merely presenting an opinion.

    Another thing: I see you guys specifically referning Microsoft in alot of your comments, another idea on them... if your major software competition offers their products for free... isn't it a good idea to be able to reach the "customers" who are only going to get their Operating Systems for free anyway? That way, you trap 'em in either one of these ways...

    Further down the road, you increase piracy prevention so much that it's damn difficult to pirate your software. Microsoft-Using-Pirates now find themselves in a tough situation, either adapt to software you haven't used before, or actually buy the software.

    Or, how about the fact that Microsoft makes so many things besides the OS. Most people are bound to pay for some of their products... and that's where they'll make their profit.

    1. Re:Piracy as a Tactic by nyquist_theorem · · Score: 5, Insightful

      Actually, Steve Ballmer said: "If you're going to get pirated, you want them to priate your stuff, not your competitiors' stuff. In developing countries, it is important to have a high share of the piracy software."

      The EXACT SAME concept should be applied to college students. The university I went to, Acadia University in Canada, gives every student an IBM Thinkpad. It's loaded with all sorts of less-than-ideal software. Many kids there would warez their laptops out with the latest versions of windows, office, photoshop, etc etc. They'd never buy the software, but gee whiz as they come out of school and get jobs, they know the software to use - the expensive stuff, NOT shareware/freeware stuff. If you have an emerging workforce that prefers to use expensive software, then that means that when those students enter the workforce, they will PREFER the expensive software with which they have experience, thus encouraging sales of said software.

      In simple terms, if a fine arts major pirates photoshop in school, they'll insist on using photoshop when they enter the field. If they can't warez their photoshop, they'll learn a freeware/shareware photo program, and/or learn to master the least expensive version available (no plugins, etc).

      If a software company wants to have the world addicted to their software by the time they get to the workforce, and they know they're not losing any sales by allowing college piracy to continue, then why not ENCOURAGE (tacitly, of course) college piracy? Busting them only turns them off the very programs you hope they'll be addicted to.

      While in university, I spent my summers selling computer software - and I sold *TONS* of software, games, OS's, and applications, based on my warez experience. When a customer asked me "why should I upgrade to (winME/Win2k/Office2000/etc)?" or "what can Photoshop do for me?" I could tell them from firsthand experience. Anyone in the computer reselling business will tell you that the software companies themselves, for the most part, do dick all to help the salesmammals get real at-home hands-on experience with software. Would you trust buying a car from a car salesperson who'd never driven a single model made by that car company?

      Anyhoo, busting college kids for warezing is like shooting fish in a barrel, but it does nobody any good. Busting a college kid often involves his or her being suspended/expelled/missing school time. That's one less college-educated kid in the country.

      Enough ranting for now.

      --
      -- "Ignorance more frequently begets confidence than does knowledge." (Charles Darwin)
  15. the "Warez" group??? by cosyne · · Score: 5, Insightful

    Members of Warez includes corporate executives, computer-network administrators and students at major universities...

    Hey, I'm a student at a major university. Can I join "Warez?" How do I sign up? Is there a membership fee? Why didn't someone tell me they'd organized it into an actual group?

    And correct me if I'm wrong, but isn't the proper conjugation "Members of Warez include corporate execs blah blah blah?" Mr Stout there obviously doesn't know shit about computers, the least he could do is use correct English. (I admit my English may not be perfect but then I'm not wrting for the Times...)

  16. Man by Sycraft-fu · · Score: 5, Insightful

    What is it with all Slashdot posters seeming to think they can see the future with perfect clarity. You may be correct, but if I were you I'd try not to sound so sure of myself. That way you don't put your foot in your mouth as bad if you're proven wrong.

    Personally, I think you're dead wrong. What you and many others seem to forget is that the US is still a republic. Now I realise that could change and we could become a dictatorship, but I find that highly unlikely. At any rate, so long as we are still a republic, that means the people are ultimately in control. It may not seem like it at times, but it is the truth. Generally big companies, special intrest groups, etc get what they want because they are the ones that whine to the politicians. However, when a large percentage of the population decides they want something, they get it. Right now J. R. Public doesn't really care about the IP battles going on, none of it has effected them. However, if the authorities start locking up everyone that tapes a copy of Survivor, you will hear a mass outcry. Voters will tell the politicians "change the law, or we give your job to someone that will".

    Again, something like this doesn't happen much, most of the time there aren't enough people that care on one issue, but it DOES happen. And I bet you if the FBI starts locking up normal people over things they've been doing for years, people will speak up, and with a loud voice.

  17. Ironic by jeffphil · · Score: 5, Insightful

    "Warez" pirates accused of breaking the law get their computers seized, publically criminalized before a trial when Commerce undersecretary Phil Bond said, "This is a serious crime. These people should do some hard time." because their accused activities are supposedly causing billions of dollars of damage and putting companies out of business.

    Yet Microsoft has been found guilty in two courts for anti-competitive behavior, and stealing billions from it's consumers and competitors, and putting several of their competitors out of business; and they have never had a single computer seized and will only get a slap on the wrist as opposed to this "hard time" that Mr. Bond talks about.

  18. Re:Any company that actualy died due to piracy? by awharnly · · Score: 5, Insightful

    When you pirate Microsoft and Adobe software, obviously you aren't bringing Microsoft and Adobe to their knees.

    Who you're hurting are the guys trying to write reasonably priced, moderately featured software that will sell for $50-$200, instead of the $500+ price of the Microsoft/Adobe/BigName software.

    In a non-warez world, people look at the very expensive apps and think, no way! Then they see the moderately-priced alternatives and think, yeah, this will meet my needs.

    In a warez world, people look at the very expensive apps and think, no way! Then they see the moderately-priced alternatives and think, maybe. Then they see the $free, full-featured warez apps, and choose that.

    The little guys are hurt.