Piracy continues to be a threat to global economy. Previous literature on factors influencing individual’s attitude towards piracy indicates that as perceived risk increases, individuals attitude of acceptance of piracy should decrease. In spite of the increased risks, some people pirate, there has been no explanation for this apparent paradox. We try to explain this paradox by using the concept of optimism bias. Results of our study show that individuals having an optimism bias engage in piracy because they consider themselves at low risk than average compared to the group.