Legal Question in Technology Law in Texas

Pirated software

I worked for a company in 2003 as a freelance animation technical director and later discovered that this company was using Pirated/Cracked software throughout the studio. During my tenure, I was asked to install said software onto newly built desktop computer systems unaware that I was installing Pirated software. I'm writing a letter to the owner, 4 years later to inform them that I intend to report them after I discovered that this company is making direct to video merchandise (DVD, books, etc.) for the Christian market. This is what sparked the resurrection of this issue. Can this letter be construed as embezzlement or blackmail? Other than reporting them, there's nothing threatening in the letter and I'm not asking for anything. Just summarizing details of what I witnessed.


Asked on 10/29/07, 6:49 pm

3 Answers from Attorneys

Edward Hoffman Law Offices of Edward A. Hoffman

Re: Pirated software

Can it be construed that way? Of course it can. Perhaps it shouldn't be, but your former employer will be highly motivated to see it as an extortion attempt. Keep in mind that even a letter which doesn't demand anything can be part of a larger scheme which does. Even if that isn't what you have in mind, you may find yourself accused of planning something along those lines.

I'm curious, though, about the history you describe. You say you weren't aware when you worked for the company that it was using illegal copies of the software, but you don't say when or how you learned this. Finding out that the company sells Christian merchandise would not give you this information.

I'm also curious why you are going to tell the owner that you "intend" to report him. If you aren't hoping he'll buy your silence, why not just go ahead and report him and send him a copy of your report?

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Answered on 10/29/07, 7:21 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Pirated software

You can rat them out to the Business Software Alliance with a phone call, and they have been known to pay cash to informants. You might want to leave out the part about your having aided and abetted the company. Also, the advent of "phone home" features in packaged software has made it harder to do unauthorized installs, so your info may be stale by several years.

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Answered on 10/29/07, 7:23 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Pirated software

It certainly isn't embezzlement; that's the theft of property that was placed in your hands by the owner which you later convert to your own use. The technical name for blackmail is extortion, and noting that you're asking about Texas law and that I'm a California lawyer, I can only refer you to the California Penal Code, which may or may not be very similar to the law of Texas:

Penal Code section 518: Extortion is the obtaining of property from another, with his consent, ...induced by a wrongful use of force or fear...

(abbreviated slightly).

Penal Code section 519: Fear, such as will constitute extortion, may be induced by a threat, either: (1) to do an unlawful injury to the person or property of an individual threatened or of a third person; or (2) To accuse the individual threatened, or any relative of his, or member of his family, of a crime; or (3) To expose, or to impute to him or them any deformity, disgrace or crime; or (4) To expose any secret affecting him or them.

Penal Code section 523: Every person who, with the intent toextort any money or other property from another, sends or delivers to any person any letter or other writing, expressing or implying, or adapted to imply, any threat such as is specified in section 519, is punishable in the same manner as if such money or other property were actually obtained by means of such threat.

You could not be convicted under any of the foregoing unless the DA can prove the element of criminal intent, but that element like any other element of a crime can be proven by circumstantial evidence.

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Answered on 10/29/07, 9:55 pm


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