Illegal Use of Software

The laws of copyright, which govern the use of intellectual property, including software, are quite clear - only one backup copy of software program for archival purposes is considered legal replication. Any other use of that software, not authorised by license, breaches the copyright law and will be seen as software piracy. Using unlicensed software, even if it's not knowingly, can leave an organisation liable to legal action that could result in large fines (of thousands of pounds), or company executives being held individually liable for any copyright infringement (punishment can also be a very high fine or even imprisonment!).

Software piracy can occur very simply and without any obvious 'underhand' activity. Many culprits make copies of, and use, unauthorised software because they are unaware of the copyright laws protecting it - but ignorance cannot be used as a defence. Any one of the following constitutes an unauthorised copy if you don't have the correct license:

using one disk (or set of installation disks) to install a programme on to multiple PCs;
copying disks for installation and distribution;
taking advantage of upgrade offers without having a legal copy of the version to be upgraded;
downloading software from the Internet;
swapping disks with other users in or outside the workplace.

Unfortunately, the Internet is also being used to download and transfer unauthorised copies of software and, in addition to the legal considerations, organisations must be aware that these programs often contain viruses that have the potential to damage both individual computers and entire networks, causing loss of data, availability and productivity.

Software loaded onto servers for use in a network environment is subject to licence restrictions. Appropriate licences will authorise use of one installed copy by multiple users, but only within the limits of the licence provisions. If you exceed permitted number of users it constitutes unauthorised use. Just because one original piece of software is purchased does not mean the number of users is immaterial.

A 2003 Gartner Group study said that, "Through 2003, enterprises that fail to integrate software contract and inventory data to manage their software assets will overbuy on 60 per cent of their portfolio and be out of compliance on 30 per cent." This is an indication of the problem of managing licensing - on the one hand organisations may have 'spare' licences because employees have left and they are unaware of the excess, and on the other hand additional licences continue to be purchased for new starters.

The management of software assets remains the responsibility of the organisation using the software and with software manufacturers continually changing their licensing programmes, staying legal can become a time consuming and logistical nightmare.

With software estimated to be worth, on average, up to 25 per cent of an organisation's IT budget, it is prudent to keep a close watch on how, where and what licences are bought. With careful software management policies in place excessive spending can be avoided and license compliance can be maintained.

BSA & FAST
The Business Software Alliance (BSA) and the Federation Against Software Theft (FAST) are organisations working in the UK on behalf of software developers and publishers to protect their intellectual property rights and interests as legislated in the copyright laws. FAST is unique in that it is the only association in the world that also represents end users, helping those who are actually responsible for managing software.

BSA and FAST will take legal action against any organisation found to be using software for which it does not have the necessary licenses. Organisations of any size are open to audit and there are systems in place that enable people to anonymously report employers or other organisations who they suspect are using illegal copies of software.

If you have any concerns over the use of unauthorised copies of software in your organisation, please contact the Software Team on 0118 902 7256/7215, or email softwaresales@ultimabusiness.com.