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By Kenneth Saxe, MCSE, MCPS, MCSA, MCNPS
Senior Technical Consultant
SN Business Solutions, LLP
What is the cost of software copyright violation? To a business that is in violation it could be a bundle! According to Jenny Blank, senior director of legal affairs for the Business Software Alliance, "businesses caught with unlicensed software on office computers face serious security and financial risks including fines of up to $150,000 per copyright infringed."
The Business Software Alliance is an organization dedicated to promoting software copyright compliance. BSA members include Adobe, Apple, Autodesk, Avid, Bentley Systems, Borland, CNC Software/Mastercam, McAfee, Microsoft, Monotype Imaging, PTC, SolidWorks, Sybase, Symantec, The MathWorks, and UGS.
Software piracy is against the law and affects thousands of businesses nationwide, and according to the BSA, costing millions of dollars in tax revenues and lost jobs. An independent study recently released in May revealed that 35 percent of the software installed in 2006 on personal computers (PCs) worldwide was obtained illegally, amounting to nearly $7.3 billion in losses for the United States.
What is software piracy? Software piracy is the unauthorized copying or distribution of copyrighted software. This can be done by copying, downloading, sharing, selling, or installing multiple copies onto personal or work computers. What a lot of people don't realize or don't think about is that when you purchase software, you are actually purchasing a license to use it, not the actual software. That license is what tells you under what circumstances or how many times you can install the software. So it's important to read it. If you make more copies of the software than the license permits, you are pirating.
What can you do to prevent piracy and ensure compliance? Here are some tips from the BSA:
1. Educate yourself about the risks to your business. Once you are aware of a problem, you can develop an effective strategy to protect your business.
2. Assess your current software assets by conducting an audit.
3. If you discover that your business is using unlicensed copies, purchase copies of that software from authorized dealers.
4. Develop a software management policy for your business.
5. Assign responsibility to one individual or team in order to centralize your compliance process and ensure all purchases and necessary documentation are tracked.
6. Educate your co-workers and employees about the importance of using only licensed software in a way that will allow them to ask questions and raise concerns.
7. Enforce your software policy and make sure all employees are aware of the consequences of violating the policy.
8. Conduct regular audits and spot checks to help ensure that your software policy is working and catch any problems early.
In 2006, the manufacturing industry generated over 20% of Business Software Alliance settlements. Recent settlements announced in June 2007 bring the manufacturing industry total to $3.79 million since 2005.
Recently there were settlements paid to the BSA of $124,057 by Payless Shoesource to settle claims that it had unlicensed copies of Adobe, Autodesk, Borland, Internet Security Systems, and Symantec software programs installed on its computers.
As well, Burlington Coat Factory paid BSA a total of $300,000 to settle claims that it had unlicensed copies of Microsoft and McAfee software programs installed on its computers.
It is not worth the risk to your company's reputation or financial well-being. Do the right thing and stay legal when it comes to software licensing.
| Keep it legal! If you have questions about the licensing of your software or any other technical question, please contact Ken Saxe at 717-757-6999 or 800-745-8233, or send him an email by using the form below. Be sure to check out Ken's technology blog at www.kensaxe.com. |
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