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March 2009 - Vol 2, Issue 2
In This Issue
Webinar: EU Privacy Regs
RSA 2009
EE Times: EDAC Scans the Piracy Scene
Waiting for Software Pirates to Call?
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  • CodeArmor Software Protection v3.0
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Greetings!
Spring is on the way and it is bringing a wealth of activity. Read on to learn about balancing anti-piracy approaches with EU privacy regulations, how to get a sneak peak at the latest version of CodeArmor Software Protection, and a recap of our recent webinar with the EDA Consortium.
Live Webinar - Balancing Anti-Piracy Approaches with EU Privacy Regulations
Alexander DuisbergWe are excited for our live webinar on April 16 with attorney Alexander Duisberg from the Munich office of international law firm Bird & Bird.

We'll cover:
  • Legal issues around automatic software auditing in the EU
  • The types of data you can collect and those you must avoid collecting (and which geographies are more sensitive than others)
  • How to manage privacy issues in a cross-border environment
  • How software vendors have evolved their anti-piracy approaches to recover revenue
Learn More and Register
RSA 2009 - San Francisco - April 20-23
RSA 2009

Come see us in Booth #559 at the RSA Conference this April. Whether you're an enterprise organization or a software vendor, we'll have a lot to show you:
EE Times - EDAC Scans the Piracy Scene
EE Times
Scott Baeder, the EDA Consortium's Anti-Piracy Committee Chair, recently delivered an update on the EDA industry's approach to piracy over the years, how the piracy scene works and current activities by the committee.

The webcast, presented with V.i. Labs, also discussed how EDA software vendors can recover revenue from the businesses that are using their software without paying for it....

Over the past three years, the Anti-Piracy Committee has been working with anti-piracy vendors and learning more about the issues to help answer questions about the most effective anti-piracy strategy for the industry. Baeder noted, "We still don't have a good, solid answer."
 
EDA Piracy GraphVictor DeMarines V.i. Lab's VP of Products presented his company's research on the increasing growth of piracy group releases of cracked software from the top seven EDA vendors over the last 10 years.

The EDAC committee is looking at the piracy problem from many different angles, including producers (the crackers), distribution channels and end users. While the committee is looking at various methods to "harden" the code and improve tamper resistance, Baeder explained that some solutions are difficult to implement and that prevention seems to be a never ending "Cat and Mouse" game with the crackers.
Waiting for Software Pirates to Call?
HotlineThe BSA and SIIA have made lots of news recently about large settlements made on behalf of their members (for example, "Utah Business Settles with BSA and Agrees to Pay $250k" and "SIIA Reaches Six-Figure Anti-Piracy Settlement with Iowa Corporation"). What are some of the takeaways of cases like these?
  • Piracy is not limited just to emerging markets - it's a problem in the U.S., too
  • Legitimate corporations are using unlicensed business software - it's not just students playing unlicensed games
  • When confronted with evidence of infringement, businesses will pay for their licenses
Indeed, the SIIA reported in its 2008 Anti-Piracy Year in Review that most of the cases it pursued involved "relatively larger companies - the average number of staff is over 804 with average annual sales of nearly $90 million."

So how do they find out about these infringing companies? Both the BSA and SIIA rely on reports to their hotlines or websites. The BSA reports that it receives over 2,500 reports of software piracy each year and that "the majority of BSA's leads come from current or former employees who had information relating to the unlicensed software activity."

The problem here is that (in most cases) software vendors must sit and wait for the phone to ring to learn about actionable cases of infringement. Frustrated by revenue lost to piracy, many vendors seek to prevent their applications from being pirated by going after the crackers or piracy distribution channels (peer-to-peer, websites, CDs/DVDs sold on the streets, etc.). They end up in an escalating "arms race" with the crackers - each group trying increasingly sophisticated techniques to defeat the other, or they play "whack-a-mole" trying to stamp out the widely distributed and ubiquitous outlets for cracked software.

CodeArmor Intelligence allows software vendors to generate actionable piracy leads within days of their software's release. Some are receiving more than 1,000 infringement reports a day to aid their business intelligence, potential sales and anti-piracy efforts. V.i. Labs offers the first solution that enables software vendors to be proactive about identifying the businesses that are actually using their software without paying for it.

So why wait for someone to call when you can be proactive about identifying the companies using your software without paying for it?
Don't Forget to Follow V.i. Labs on Twitter
TwitterWe're using Twitter for shorter comments and updates - feel free to follow us!
 
We will still be posting longer discussions, analysis and commentary to Code Confidential, but we're looking forward to microblogging on Twitter, too.
Thanks, as always, for reading this month's newsletter. Your comments and feedback continue to help us improve our content, so please keep those emails coming!

And don't forget - if you can't wait for the next issue, be sure to follow V.i. Labs on Twitter for the latest news and commentary on the world of piracy and software protection.
 
Best Regards,
Michael Goff
V.i. Labs
 
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