serials

My friend won't freaking deny that hes wrong. I told him cracks and "free" serials are considered as pirated software since its used to open it as he's giving it out illegally. He doesn't think so, but hell i'm not the one getting in trouble if he's caught. Am I right or am I wrong?

I got milkshape and I had it for only 2 minutes when it expired. So i got a code to register it. Then a message comes up saying restart the program so i do. Then it says u registered an expired thing, so let milkshape run for at least 2 minutes. I do that and leave it on forever then try to save...