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 own₂, 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}