We have over recent years commented on the various initiatives undertaken by the Business Software Alliance (the BSA) to root out those businesses using unlicensed software. With software piracy studies estimating nearly $4 billion in global losses, it is easy to understand why members of the BSA, such as Apple, Microsoft and Adobe, mean business when they take unlicensed users to task.

2008 has not been a quiet year for the BSA, and the settlements reached are not for the faint hearted. Early in the year a US company settled with the BSA by agreeing to pay $92,500 for its use of unlicensed copies of Microsoft and Symantec software.

In the summer of this year, four UK companies settled with the BSA for their alleged use of illegal software, for what the BSA stated were "settlements running into tens of thousands of pounds".

And this week, the BSA has announced that the Renfrewshire company, Total Repair Solutions, "will be counting the cost of using unlicensed software" after paying a substantial sum to cover settlement costs with the BSA, as well as legalising and acquiring software needed by the business.

This, along with the announced motor dealership, John R. Weir settlement of £24,582 for its use of unlicensed copies of software, should send warnings to all businesses of the penalties involved in using unlicensed software.

In the current economic climate it is important to bear in mind the risks involved in using unlicensed software and not to be tempted to shelve planned software audits or indeed to take unnecessary risks or short term measures.

Some simple rules will help to keep your business healthy:

  • Set out a clear and concise policy to employees on what they can and cannot do with computer equipment. Any such policy should make it clear that they are, unless otherwise authorised, not permitted to download software from the internet. Set out clear statements preventing employees from bringing in memory sticks and the like to use on your business facilities – you don't know what they might contain!
  • Make sure that you enforce your policy and carry out disciplinary action when required.
  • Where you identify business needs, deal with them – purchase extra licences as and when they are required.
  • When you purchase hardware which comes with preloaded software make sure that you ask and receive the licences for the software. Don't assume that the supplier has dealt with this.
  • Carry out a software audit and create an asset register of the software your business has and then regularly update and audit.

Finally, one of the methods of discovery which the BSA uses is that of providing financial rewards to those who report use of unlicensed software. It is highly likely that an informant would be a disgruntled employee or ex-employee, so it pays to ensure you have had an active audit in place.

Disclaimer

The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.

© MacRoberts 2008