Considering differences between the original and pirated software in the minds of consumers, sets up Bertrand Model to study the price competition policy among the original software manufacturers, the pirated software manufacturers and the agents, then gets the equilibrium price that maximize the above three’s profits. By numerical experi-ments analyzes the variation tendency of equilibrium price, sales volume and profits along with the changing of the original and pirated software in the consumer’s minds, and obtains implicating conclusions.