Software companies must also spend considerable time and resources in fighting piracy and filing lawsuits against violators and copyright infringers. Relatively recently both Nintendo and Electronic Arts filed such a lawsuit against Yahoo "for copyright infringement due to the sale of pirated games in Yahoo auctions and classifieds."3 The lawsuit was dropped when Yahoo signed an agreement to "halt the trading and sale of pirated software in Yahoo auctions."4
Piracy results in major losses of revenue to the industry which (for business applications)
the SIIA has estimated at around $12.2 billion worldwide (1999 Data). With respect to the game industry "up to 109,000 jobs, $4.5 billion in wages and $1 billion in tax revenues" were estimated to be lost during 1999.5
To further illustrate the costs of piracy, according to the Interactive Digital Software Association (IDSA) "With the money lost to piracy , U.S. game publishers could have developed about 1,600 new high quality games."6
Many violators do not realize that their actions are unethical; furthermore, they are unaware of the legal ramifications to which they may be subject.
What measures are being taken to deal with Piracy?