Rosetta Stone Inc. was sensitive to software piracy and how unauthorized access to its language programs affected the company’s reputation and profitability. Peer-to-peer file sharing network sites like eDonkey, BitTorrent, and Direct Connect provided individuals with a means of distributing and downloading illegal copies of Rosetta Stone. Unauthorized users took advantage of paid subscribers’ information, using corporate or educational logins in order to access the company’s online offerings. Those who disregarded Rosetta Stone’s protection measures were subject to civil and criminal laws. Violators could be fined up to $250,000, face up to five years in prison, or both. The company provided links on its website where individuals could report instances of piracy.
The company also attempted to educate users about the various risks they were exposed to as a result of Internet fraud. On its website, Rosetta Stone explained that buying from unauthorized dealers leaves users subject to identity theft and exposed to defective or corrupted software and software viruses. In addition, using unauthorized products excluded users from access to warranties, proper manuals, support services, and software upgrades.