What is the punishment for illegal software use?

It depends on the country of offence. As they say... Your mileage may vary.

But think about this: Bill Gates fought for us Software Engineers by advocating that software needs to be sold separately than hardware. It is because of this that he is rich today is also the reason that us software engineers get paid reasonably well.

Now if you are using illegal software you are hurting some fellow Software Engineer which to me is not a nice feeling. Especially when you also have open source alternatives that may be half good but what else can you ask for without paying a penny?

Also you may well get away with using illegal software in this world but what about the life after you die? Do you think you would not be questioned by Allah for doing something that you have yourself admitted to be illegal?

Depending on the License of Software you want to illegally use because the software producer make Accept the license before you use  :

1.Open Source License and there's two types :

A. Manage about how the software can be redistributed (permissive licenses)

B. preserve the freedoms that are given to the users by ensuring that all subsequent users receives those rights (Copy left Licenses).

and this type of licenses encourage users to use their Software and redistribute and may be develop it Like GNU General Public License  (GPL).

2. Proprietary software licenses :

Force you to Accept the EULA (End User License Agreement) which include terms that defines the using of the software, such as the number of installations allowed or the terms of distribution and often prevent Reversed Engineering  

For individual use, ti is not necessary to buy software application separately, its sold along with laptops/desktops.

While for commercial and office use, one should buy the official / legal software application licences.

Do you think, people consider about the life hereafter while doing any crime or committing sins?