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January 16, 2008

Have the “Software Police” Called On Your Business Yet?

by Ralph Martinez
Filed under: Articles, Useful Resources

 Legal/technology services firm partner Robert J. Scott said today, “There are two types of companies: those that have been audited [for software violations] and those that will be.” Scott sees the trend. In the last year, the Business Software Alliance, the main copyright enforcement watchdog for Microsoft Corp, Adobe systems and Symantec, reaped $13 million in software violation settlements, almost 90% of which came from small businesses.   

Here are five things a small business owner can do to reduce the risk of being hit with a software violation claim:

1.     Make sure that the computers used in your business use software for which you have licenses. If you do not have software licenses for all the software used in your business, obtain them and keep them in a secure place.

2.     Establish a company policy and regularly remind your employees to never copy software onto a company computer that does not have a corresponding license. 

3.     Don’t cheat. It may be tempting to copy existing software when you need an additional person to use it. Buy the additional license. 

4.     Consider purchasing software that is now available to inventory and monitor changes to the software that is on your computer. The International Association of Information Technology Asset Managers has a list of links to providers this kind of software.   

5.      If your business is one that is not necessarily dependent on proprietary software, ask an IT consultant about whether you could use “open source” software.

If you think it is not fair to target the small business owner, you are not alone.  Criticism of BSA has been leveled because so much deliberate piracy occurs outside the country. However the lack of knowledge and common informal record-keeping puts United States small business owners at higher risk of a piracy or license violation claim. The strategy of targeting small businesses may not deter the larger problem of software privacy, but it is raising awareness in small businesses that may be inadvertently violating software license agreements. 

Worried about or threatened with a software audit already? An interview article by Kathleen Melymuka Framingham of Robert J. Scott in Computerworld explains what a software audit is and how to prepare for it. 

Avoid being a target for a software license claim and be prepared for a software audit if or when it comes your way.

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