Observation:
Why would anyone brag about stealing - in front of a group of people? It happens all the time as students in class tell me about stealing music, movies, software and other intellectual property₁ protected by law. The irony is that many of them aspire to create the very things they now steal. I fear that this attitude about copying intellectual property has affected attitudes towards the copying of code.

The Rule:
Rules are not made primarily to punish, but to guide behavior. That being said, the rule in my class is this:

Copying code is forbidden. Allowing others to copy your code is forbidden. You must protect your intellectual property as you protect your personal property - with all reasonable measures. You must respect the property of others and recognize that copying code is stealing and is wrong.

You must write your code on your own, not as part of a group. Make efforts to avoid even the appearance of impropriety. Penalties will be severe: a grade of zero for all conspirators.

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_{1. In the American tradition, intellectual property law is largely motivated by utilitarian concerns. It is not designed to give property rights solely as a reward for hard work [...]. It is about setting up conditions under which creators can and will produce new works.}

_{Source: Intellectual Property Policy Online: a Young Person's Guide at Duke Law}