Illegal use of Software and the Business Software Alliance
June 8, 2009Over one third of all the world’s business applications are currently being used illegally either through criminal intent or inadvertently through the non-payment of licence fees - within Ireland the figure for non-compliance is 34%.
We would advise that all businesses carry out a software audit in order to ensure that all software is being used legally for the following reasons:
1) To avoid running foul of the law and the Business Software Alliance;
2) To review current IT usage and use the information to drive down IT costs;
3) To ensure that the business receives all current software and security updates.
We have assisted a number of clients in carrying out IT audits and it was satisfying to see that the cost of complying with the law in some cases was less then what it was costing to run the illegal software, plus, there was the peace of mind that came with knowing that the business was on the right side of the law.
How might business owners be running foul of the law?
A classic example would be a licence taken out for software for 5 employees which is then being used for 25 employees - this would be illegal. An example of how a saving might be made would be where the same business had licensed the use of software for the full 25 employees but then had to make 10 of them redundant. In this case a software audit would unearth the fact that the business was paying too much for the licensing of the software because the number of users had dropped from 25 to 15. In this case the business should approach the licensor in order to try and negotiate a reduction.
Business owners might also then query how they might get caught and we would reply that the majority of cases are as a result of disgruntled ex-employees reporting their previous employers to the relevant authorities – this has never more true than in the current economic environment.
Please contact David on dreilly@dreilly.ie for further information on this topic or any other legal problem or matter.
