The fact that hackers found a way around Microsoft  's Windows Genuine Advantage (WGA) antipiracy system only a day after it went into effect has prompted concern about the capacity of antipiracy efforts in general to stop piracy.
Microsoft's WGA requires users to verify they are using a genuine copy of Windows before they can download software updates, although security patches can be downloaded without verification, even to a machine with a pirated copy of Windows running on it.
Microsoft had put WGA in place to reduce the number of illegal copies of Windows and to persuade users running pirated copies to buy legitimate licenses. The company had run the program on a voluntary basis at first, then made it mandatory in late July.
Just a day after it was made mandatory, a JavaScript hack that turned off the checking mechanism began circulating.
Focal Point
Microsoft's attempt to put more muscle into its antipiracy program is indicative of a current trend at software companies, which have begun to ponder better ways to fight intellectual-property theft.
Unfortunately for software makers, piracy rates seem to be largely unchanged by such efforts, said IDC analyst Cushing Anderson, who added that revenue will not be positively changed by any amount of enforcement.
"As a relatively victimless crime, with low barriers to entry and low chance of being caught, software piracy will continue at some level unless the alternative to piracy is less expensive," said Anderson. "This is economics 101 about the price-demand curve."
New Strategies
If hacks continue, it is possible that Microsoft will have to change its antipiracy tactics toward tweaking pricing models. Although the company already has tried this on a limited basis in Asia, ongoing piracy could broaden the strategy's reach.
"The future of piracy is dependent on the actions of the software companies themselves," said Anderson. "If they make legitimately purchasing or using software less expensive, the incentive to use pirated property will be reduced for those that are willing to pay something for their software."
This does not mean that companies need to give away their software, he added, but software makers should understand the cost of noncompliance with license agreements, and factor that in to future pricing decisions.
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