"The problem with software piracy is it's still a gray area. A copied bit of data is essentially valueless unless you in turn sell that data to someone else. You can still be prosecuted for pirating software, even if you don't sell the data, and I realize that. So that's good as it is morally wrong. But IMO piracy needs to be defined by the law as it's own thing and not tied in with theft, because in many cases it's clearly not. i.e. making a copy as a backup or installing the software on multiple machines."
Thats not true. Capitalist thinkers decided long ago that in some cases monopolistic activities actually increase competition as well as push innovation, thus the copyright was developed, allowing one person (or entity) to have monopoly on an idea or invention. If you invent something or create a unique product, copyright law entitles you to absolute control and entitlement to all proceeds from said invention or product, regardless of percieved tangible value. In regards to software, all of it is licensed. Everything. We pay for permission to use it in the manner described in said license. There is no argument here. The law is very explicit in this. Eulas were developed because people tend to forget that they using other peoples software. The fair use act, which provides for a backup copy, was implimented solely because at the time the media in which software was distributed on was very unrealiable. Floppy discs would fail randomly, and production of early CDs was hit and miss at times. Thus, the government decided to protect end users from having to pay the high rates companies were charging for replacement media by allowing one legal backup, but stipulated that the software must be used as if only one copy exists to protect the fact that you in fact are licensing one copy, since the backup is only there contingent on the original media failure. The fair use act needs to be updated, as currently production provides for an incredible low failure rate with media, and what does fail is now replaced by distribution points, such as stores. Early software was almost always mail order until stores like Babbages went mainstream.
In short, there is no gray area, nor any confusion. Just because copied software may or may not have intrinsic value (in the form of money) to the person who copies it, it is still absolutely illegal according to copyright law. Morality can be argued all day, but legal is printed and explicit.