V.i. Labs Pioneers New Solution for Software Vendors to Combat Growing Piracy Problems and Recover Lost Revenue
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[August 20, 2008]

V.i. Labs Pioneers New Solution for Software Vendors to Combat Growing Piracy Problems and Recover Lost Revenue

CodeArmor Intelligence quantifies the scope of piracy problems and gives forensic evidence for lead generation and license revenue recovery

V.i. Laboratories, Inc. (“V.i. Labs”), a provider of software protection solutions for securing high-value and mission-critical applications, announced a new anti-piracy strategy that gives software makers multiple options to track, reduce and recover lost revenue due to piracy.



CodeArmor® Intelligence, built upon V.i. Labs’ software protection technology, enables independent software vendors (ISVs) to identify which companies are illegally using their products and gather hard, indisputable evidence necessary to recover that revenue.

ISVs are struggling to quantify the actual scope of their piracy problem. While they may know which of their products have been cracked and made available in piracy distribution channels, they rarely know how widely (or where) their applications are actually being used by businesses.


“The EDA software industry in particular has been challenged to measure the true piracy loss for its software. Piracy effects more than license revenue. It can have significant ripple effects because the use of pirated software greatly reduces the cost of created electronic devices,” said Scott Baeder, Anti-Piracy Committee Chairman, Electronic Design Automation Consortium. “The CodeArmor Intelligence solution is very important since it can give software vendors a way to generate concrete evidence of unauthorized use and reduce the revenue loss attributed to piracy.”

Software protection is one form of defense for ISVs. But the lack of data, complexity in their customer base, product maturity, and market dynamics may require a detection, reporting, and lead generation strategy to recover license revenue. CodeArmor Intelligence now provides a product approach that can be easily integrated into their applications to detect piracy threats and centrally gather forensic data and create piracy leads to support sales and legal efforts to recover revenue.

“Our large ISV customers have validated that a data gathering and lead generation product can better meet their needs for applications that are well-established and widely deployed,” said Victor DeMarines, vice president of Products for V.i. Labs. “By adding Intelligence capabilities to CodeArmor, we enable ISVs not only to quantify their specific piracy risk, but to target the actual users of pirated software to convert them into paying customers.”

CodeArmor Intelligence is the first turn-key piracy detection and reporting system that integrates with existing applications and Salesforce.com (News - Alert), offering a dynamic method to collect, filter and report on the use of pirated applications and create leads for the ISVs’ sales, compliance or legal teams. Currently, ISVs rely on licensing, activation or home-grown approaches to gather data, which are easily detected, bypassed or disabled by piracy groups. These home grown systems also lack filters and reporting schemes for the data collected and are unable to organize and report the information in a way that can be used to develop a piracy lead.

“Our research indicates that the average infringing organization has greater than $17 million in revenue and more than 150 employees – clearly they are using pirated software to generate their own revenue,” said Keith Kupferschmid, SVP, Intellectual Property Policy & Enforcement, Software & Information Industry Association (SIIA). “Many of the leads we act on come from insider or other sources. With V.i. Labs’ new technology, organizations can potentially generate high-quality leads to accelerate efforts to recover revenue from businesses using pirated software.”

How CodeArmor Intelligence Works
CodeArmor Intelligence adds piracy threat detection and reporting to ISVs’ applications through a simple configuration program. If piracy or tampering is detected, CodeArmor Intelligence communicates the infringement through stealth reporting technology to multiple Web gateway servers within the ISV facility. Legal use of the software does not trigger this functionality and does not impact the licensed customer base. Infringement data is then integrated into the ISV’s instance of Salesforce.com, enabling legal, product management, or other users to view a piracy lead dashboard, report on non-compliant organizations and export infringement data. The Web gateway component also allows vendors to integrate infringement data into their internal CRM system. Organizations can either act on the data directly to recover revenue, or enlist channel partners or legal services from the SIIA or Business Software Alliance (BSA) to act on the leads.

About The CodeArmor Platform
The CodeArmor platform provides a comprehensive solution that enables software providers to ensure the integrity of their valuable or mission critical applications using software protection, threat detection, and reporting solutions.
• CodeArmor Software Protection for native Windows and Microsoft .NET (News - Alert) applications automatically secures software from piracy, code theft and malicious tampering threats without requiring source code modifications and software development process changes. It utilizes V.i. Labs’ patented technology to layer code encryption, anti-debug, anti-tampering, and runtime execution monitoring to protect software wherever its deployed.
• CodeArmor Intelligence is a turnkey threat detection and reporting solution that allows software providers to monitor, report and act on threats to their deployed applications.

Availability/Pricing
CodeArmor Intelligence is available immediately. Pricing is based on an annual subscription price starting at $50,000.

About V.i. Laboratories (V.i. Labs)
V.i. Labs provides software protection solutions that prevent the misappropriation and theft of intellectual property resident in software applications. Through V.i. Labs’ patented technology, software vendors, embedded system providers, enterprise organizations and government agencies are able to easily detect, gather intelligence, and protect against the threat of piracy, tampering and theft, independent of where the applications are distributed. V.i. Labs is privately held and is headquartered in Waltham, MA. For more information please visit http://www.vilabs.com.

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