Online piracy is a huge problem of software and entertainment industry. Governments, international platforms and law enforcement agencies have agreed on the undesirable near-exponential growth of online piracy,which establishes it as a social epidemic. This paper addresses the very first exploration to demonstrate the proliferation of online piracy in society as a contagion. The problem is formulated with the help of compartmental mathematical treatment and network-based analysis, incorporating the important factors of the dynamics as model parameters. Next, we propose a solution for this problem by developing awareness in the society by word-of-mouth.With the help of realistic parameter selection which accounts for the behavioural responses of the people, we examine the system for increasing levels of complexity: differential equation-based mean-field scenario, network analysis with substantial heterogeneity and real social connections, through mathematical treatment and network simulations. Exhaustive bifurcation analysis is carried out to investigate major similarities and dissimilarities between the homogeneous and heterogeneous approaches. The results point out and quantify the importance of positive and negative peer influences are the key factors for eradication and control of digital piracy.