A person copying software for a friend or colleague, and a business understating the number of computers using the software are also forms of software piracy. This is the most common form of software piracy because it offers lest risk for the user because they do not have to go through online processes of obtaining the software. Illegal Internet Distribution occurs when software is ordered over the Internet. Many resellers with online storefronts or selling from auction sites are known to distribute illegal copies of software. It has been estimated that "90% or more of software sold over Internet auction sites is either bootlegged or stolen" (Unknown2). When prices are much lower than they should be, they are often too good to be true. This form of piracy is also common because most of the customers that order this software will not realize that it is an illegal copy until they actually receive the software. Distributing specialized education versions to unauthorized markets occurs when schools are given numbers of software to be used in their schools at a lower price and cannot be used for resale. Schools are given specific lowered rates to purchase a large group of software. This software is either used on school computers or bought by students at a lower price. Since they have access to software at a much lower price than retail, these copies are not to be sold on a market or distributed to other sources. This form of piracy is very rare because most specialized education organizations do not want the risk of jeopardizing their name and reputation over a small source of income.
Impact of Piracy.
Many people believe that software piracy only affects software creators. However, the damage caused by software piracy is much more severe. Software Piracy affects jobs, wages and retail sales across Canada. It also has a negative effect on economy, and millions of dollars are lost in tax revenues each year.