Since the multi-billion dollar software industry is become more and more financially lucrative, are some of the more unethical entrepreneurs in the U.S. are trying to get on the action, earning money through the distribution of pirated software. Often performed-line, software piracy cost the industry millions of dollars in lost revenue, and the offense may result in hefty penalties of fines and imprisonment.

According to reports from the U.S. Department of JusticeComputer Crime and Intellectual Property Section (http://www.cybercrime.gov/), Operation Fastlink, a federal program called "the largest global enforcement that has ever undertaken against online piracy", responsible since 2004 for recovery 50 million U.S. dollars worth of pirated media distributors. In addition, the USDJ Intellectual Property Task Force recently released its 2006 progress report, highlighting the achievements of the company in more thanGoals put forth in their report of 2004. The federal government take decisive steps to combat software piracy and piracy of other media like movies or music and games, and the consequences for trade in counterfeit goods are always hard.

The term software piracy is used in relation to the copying and selling for profit of copyrighted software without permission of the copyright holder. Distribution of pirated software is also available inInfringement of copyright in the U.S., even if no profit is made, with the exception of copies made for educational purposes and under different circumstances, under U.S. fair use laws. According to current U.S. law, "fair use" for the reproduction of a particular work for purposes such as "criticism, comment, reporting, teaching, science and research." Four factors in section 107 to 118 of the Copyright Act set out must be met when they say "fair use":

The purpose andType of use, including whether such use is of commercial nature or for nonprofit educational purposes
The nature of the copyrighted work
Amount and substantiality of the portion in relation to the copyrighted work used as a whole
The effects of the use upon the potential market for or value of the copyrighted work

Fair use does not apply, of course, for the distribution or sale of illegally copied software, or the resale of original software.

In June 2006, 37-year-oldDanny Ferrer, pleaded guilty in a point of conspiracy and one count of criminal copyright infringement for selling pirated online. Ferrer ran what one of the biggest benefits of online distribution of pirated software in the U.S., and is responsible for losses of up to 20 million U.S. dollars for the software industry. He operated www.BUYUSA.com, selling reproductions of copyrighted software at low prices, from 2002 to 2005, when the Federal Bureau of Investigation shut down the site. He isCurrently waiting for his 25th August 2006 sentenced, at which time he had with a maximum of 10 years jail time and fines of up to $ 500,000 faces dollars. Federal researchers hope that these and similar cases will serve as a warning to those who attempt to profit from software piracy.