Software piracy in arcade machines is a significant concern for manufacturers and operators, as it leads to lost revenue and unfair competition. To combat this, several effective strategies can be implemented.

1. Hardware-Based Security: Utilize tamper-proof hardware components, such as encrypted chips or dongles, to prevent unauthorized copying or modification of software.

2. Online Verification: Require arcade machines to connect to a central server for periodic license verification, ensuring only legitimate copies are operational.

3. Unique Licensing Models: Implement per-machine or time-based licensing to track usage and deter illegal distribution.

4. Firmware Updates: Regularly update firmware to patch vulnerabilities and disable pirated versions.

5. Legal Enforcement: Pursue legal action against piracy operations to set a deterrent example and protect intellectual property.

By combining these measures, arcade machine operators can significantly reduce software piracy and safeguard their investments.