It is well established that software and content piracy is a big problem on auction and classified ad sites like eBay and Craigslist. SIIA is pleased to note, however, that eBay has taken a couple of steps in the past few weeks to crack down on fraud - an in particular, software piracy - taking place on its site.

Specifically, a few weeks ago eBay removed the "Digital, Downloadable Software" category, which will make it more difficult to sell downloadable software on the site. Although the sale of downloadable software has not been prevalent on eBay, when it did occur (in every instance I came across) it was always pirated software that was being sold.

Another positive policy change eBay made is to record information about the computers a seller typically uses to sell his or her products and then when the seller posts new auction listings eBay will verify that the seller is logging in from the same computers that it has in its records. Because one of the tools that software pirates use to sell illegal software on eBay is to gain access to member accounts with well-established reputations and then set up listings in that member's name, this new policy should reduce the instances of this type of fraud.

While these changes may not represent a huge improvement, they do represent baby steps toward addressing the problem, and for that eBay should be commended. eBay has taken more steps to address piracy than many other websites. However, because eBay is so big it needs to do this. In fact, because of its size it needs to do much more than its competitors. And, frankly, in my view, at this point, it hasn't done anywhere close to enough to adequately or effectively address the software and content piracy problem it has on its site. In fact, at the same time, eBay was making these positive changes, it also took a step backwards by removing its Multiple Listings Limit Policy, which limits sellers to 15 identical listings at any one time. Sellers are now allowed an unlimited number of identical listings, which is certain to increase the instances of software and content piracy on the site. So its two steps forward and one step back.

We continue to hope that eBay will pick up the pace in addressing the piracy problems it has on its site, and I'll applaud them when they do make such efforts. This is not just about protecting the software and content industries. This is also about protecting consumers from fraud. In my view, eBay is not doing enough and needs to step it up. However, they have taken some positive steps over the past few weeks. It's a good start. I remain optimistic that such efforts will continue.