The problem of piracy has always existed since the beginning of the creation of computers, namely using rudimentary methods. With the emergence and development of Internet and computers more powerful, more sophisticated ways were emerging and less expensive to pirate. Today hacking/software piracy has highly negative consequences, implying huge loss for both the economy and businesses. This paper will study some determinants of hacking. It examines empirically the influence that GDP per capita, the unemployment rate, the rate of education, taxes and the percentage of Internet users have in the piracy rate. It will be used panel data for the 27 EU Member States for the years 2007 and 2008 and analyzed the losses caused by piracy from 2003 to 2008. It will also set out some determinants of the price of software. GDPpc, VAT and internet users have an important impact on software piracy in the EU.
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