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The High Cost of Pirated Software

Monday, August 22, 2011 by Michelle Hartley

As a business owner, you need various types of software to help your employees work more efficiently and have your operation run smoothly. As most small business owners know, software costs add up quickly. Therefore, if the option of free software is on the table, many businesses owners are quick to go -- Why not? The simple fact is most free software is pirated. This means the distributor of the free software usually does not have a license or the software is improperly licensed.

While there are those businesses that fall through the cracks and don't ever get caught with unlicensed software, there are more companies that do get caught and fined -- and those fines are not cheap. According to entrepreneur.com's The Hard Truth about Software Licensing, the Business Software Alliance (BSA) and the Software & Information Industry Association are cracking down on businesses that have unlicensed software in their possession and the offenders who are distributing the pirated software. The worst part is many businesses don't even realize they own pirated software.

This past May, Williamson Eye Center of Baton Rouge, LA paid $116,000 to the BSA to settle the several claims against them concerning unlicensed software copies of Microsoft, Adobe, Corel and Symantec. A staple in Baton Rouge, Williamson Eye Center had been in business for over 50 years and had no idea they owned unlicensed copies of software until the BSA approached them concerning the matter. Jodie Kelley, BSA Vice President of anti-piracy and general counsel warns businesses, "Not only do organizations face possible legal trouble for employing pirated software, there are also tremendous security and economic consequences involved."

Now, how do you prevent this from happening to your business?

Check your Software - If you are unaware or slightly concerned about the licensing of the software products you currently own, there are several tools your business can utilize to check if it is properly authorized. Some of the best producst recommended by the BSA are Front Range Solutions Centennial Discovery, Express Software Manager, and Lansweeper Network Inventory.

Save the Proof - Saving the proper licensing for all of your software will help save a lot of headaches. From now on, when you purchase software collect all of the licenses and put them in an easily accessible place where there is little risk of them being lost. If for some reason the BSA starts to question your business's software, the fastest way to prove your innocence is to have the license available.

Software pirating is a serious issue that is costing businesses a lot of money. Ensure you are up to date and have proof of your licensing to guarantee you won't end up owing thousands of dollars.

Until next time -

Michelle Hartley

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