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Gartner Group and Software Protection

Gartner Report Defines New “Cyberthreat” Category

The threat of reverse engineering, piracy, and subsequent theft of Intellectual Property (IP) resident within software is a widespread problem for independent software vendors (ISVs) and application providers. Because the enforcement of IP laws is weak in emerging markets, the risk of these threats is even higher. However, software vendors have taken minimal steps to deter the reverse engineering threats.

Gartner, in its September 13, 2006 report “Hype Cycle for Cyberthreats, 2006” (Amrit T. Williams, et al., Gartner ID Number G00142056), identifies Enterprise Code Reverse Engineering as an emerging cyberthreat. The report is based on the premise that “hobby-based malware and cybervandalism still threaten our IT assets, but financially motivated and targeted cyber attacks against increasingly complex and externalized IT environments can result in higher damage potential.”

The report goes on to describe “Enterprise Code Reverse Engineering” as the “reverse engineering of enterprise application code for the purposes of targeting vulnerabilities or stealing intellectual property.” Although this threat is considered in the early stage of the hype cycle for enterprise organizations, V.i. Labs believes the threat itself is nothing new for ISVs.

“Although a relatively new threat for enterprise environments, reverse engineering application software has been well known to ISVs with respect to software piracy,” said Victor DeMarines, V.i. Labs’ Director of Product Management and Marketing. “For years, the cracking community has been using reverse engineering tactics to unwrap software protection and bypass software licensing systems that are integrated within high value software.”

Enterprise Code Reverse Engineering is an emerging threat for Enterprise organizations. V.i. Labs believes that the reverse engineering tools and hacker expertise which has had years of practice cracking ISV software license mechanisms will make a formidable threat for sensitive applications being deployed within and outside the Enterprise.

While V.i. Labs agrees that both enterprises and ISVs must explore technologies to protect against Enterprise Code Reverse Engineering, it strongly recommends that, while it’s difficult to quantify revenue losses resulting from software piracy with precise accuracy, it is important to establish a benchmark for measuring the effectiveness of anti-piracy tactics by comparing the revenue performance of major product releases. Understanding specific threats and where they are in their life cycle can help organizations identify and implement appropriate measures of protection.