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BeerFiles is a sometimes irreverent blog concerning all things to do with IT, technology, people and the media from the point of view of a hard boiled technology journalist and commentator. Stan has been in the IT game for about a quarter of a century. He has seen and written about the rise and fall of more than a few IT players and made many friends, some of whom he has even crossed swords with on occasions. Everything in this blog is purely Stan’s opinion so if you agree, wish to expand upon, correct a post or tell Stan he’s a clueless know nothing, please feel free.
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Software pirate has 7 years to consider next job E-mail
by Stan Beer   
Wednesday, 13 September 2006

When most of us think about software piracy, we imagine some guy down the street or in China with a pirated copy of Windows or Office running on his cheap PC. However, that scenario bears no resemblance to the case of 27 year old Californian Nathan Peterson, who has been sentenced to seven years in prison for selling counterfeit software.

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In fact, software counterfeiter is a far more fitting description for Peterson, who ran a thriving business and became a multi-millionaire selling copied software from the likes of Microsoft, Adobe and Symantec, through his website www.ibackups.net.

Apparently selling copied software is a good business because Peterson reportedly made more than US$5 million in just two years, which enabled him to live a lifestyle most 27 year olds can only dream about. Unfortunately for Peterson, it's also considered to be a Federal offence in the US, akin to robbing a bank.

So now, Peterson not only has to spend 7 years behind bars, he has to pay back US$5.4 million to the companies he deprived of revenues. There are some who may argue that this sentence is too harsh because it's only software piracy. However, Peterson did not merely infringe the copyright of the companies whose products he copied so that he could use them himself. That's piracy and it's worth a slap on the wrist. Peterson set himself up in business against the companies, in order to enrich himself on the software they developed. That's grand theft and in the US it's worth prison. {moscomment}

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