Is your software properly licensed?

By Linda Musthaler
Network World Technology Executive Newsletter, 01/14/02

I live in Houston, and I've been hearing an unusual commercial on the radio lately. The Business Software Alliance has been touting a special " grace period " for companies that may not have the proper licenses for software programs used on their computers. The grace period program, which runs through this month, is valid in seven cities/areas around the country, including Houston, Texas; Billings/Bozeman/Missoula, Mont.; Indianapolis, Ind.; Nashville, Tenn.; Norfolk/Richmond, Va.; Orlando, Fla.; and San Francisco/Oakland/San Jose, Calif.

The Business Software Alliance (BSA) will reach up to 800,000 businesses with this amnesty program. It is designed to get companies to admit to themselves that they may have a problem with pirated software, and to rectify the situation before BSA takes legal action against them. Companies taking the necessary steps to become fully licensed (and haven't already been informed they are under investigation) will be excused from penalties for software violations occurring prior to Jan. 31, 2002. Complete rule details can be accessed at www.bsagrace.com

These seven cities are not the first to enjoy this program. BSA spokeswoman Debbi Bauman said the grace period program has run in about 28 cities across the U.S. since August 2000. " The intent of the program is to raise awareness of the issue of software piracy, and to encourage companies to take action on their own to comply with the copyright laws covering software programs, " says Bauman.

BSA is an international organization representing leading software developers in 65 countries around the world. Established as the voice of the software industry in 1988, the alliance fights software piracy, educates computer users on software copyrights and advocates public policy that fosters innovation. The organization also helps governments and consumers understand how software strengthens the economy, worker productivity and global development.

In the fight against software piracy, BSA has its member companies' power of attorney to take legal action against organizations suspected of using unlicensed copies of software programs. BSA works from tips that it receives, usually from disgruntled current or former employees.

Most often, BSA's legal council notifies the offending company of a potential lawsuit over copyright infringement. If the company chooses to cooperate with BSA, it agrees to delete the pirated software, buy licenses for all remaining software, and pay a fine to the BSA. If the company chooses not to cooperate, the software organization could conduct a raid, which is not unprecedented. If an individual or a company is caught copying software, the responsible party may be held liable under civil law.

Over the past nine years, BSA has collected more than $70 million in penalties from companies using unlicensed software. An individual company's fines could run into the hundreds of thousands of dollars, making this legal challenge much more than a mere slap on the wrist. That's one of the key messages that BSA is trying to get out through these Grace Periods it is offering around the country.

Most large enterprises have implemented some type of automated system for inventorying and managing software licenses on its desktop clients. Small to mid-sized companies are much more likely to lack the tools and resources for conducting their own audits. BSA offers a free software management guide that will help a company comply with the software licensing laws. This guide is available by calling the toll-free BSA Anti-Piracy Hotline at 1-888-NO-PIRACY or by visiting BSA's Web site at www.bsa.org

Whether or not your company is located in one of the cities featured in this month's " Grace Period, " it's important that you do adhere to software licensing laws and effectively manage the software that your company uses. Otherwise, your company could be just one " tip " away from costly legal action and some very unwelcome publicity.