Last Review: August
14, 2010
Product(s): All software
Illegal distribution and use of software can result in prison terms of up to five years, and felony charges with fines up to $250,000. In civil litigation, software publishers can obtain the higher of lost profits, the infringer's profits, or statutory damages of up to $150,000 per product infringed, plus attorney fees. But the costs are not measured in dollars alone. When organizations are legally prosecuted for software piracy, they also suffer significant damage to their reputation.
According to IDC and the Business Software Alliance (BSA), software piracy exceeded $51 billion in commercial value in 2009. If software piracy was lowered just 10% in the next 5 years, thousands of new jobs and billions of dollars would be pumped into the economy. The downside of acquiring pirated software is clear: pirated products can carry viruses and often do not come with documentation; in addition, you cannot receive upgrades or technical support for pirated software.
Under "vicarious liability" of the US Copyright Act, an employer is liable for acts committed by its employees when those acts are within the scope of their employment duties. Copyright law is a strict liability tort and does not require the entity committing the infringement, or responsible for the infringement, to be aware that their actions are in violation of law.
Here are some guidelines to avoid the risk of software piracy and protect yourself and your organization:
Always buy software from a reputable source.
Do not purchase software labeled "Education" unless you are faculty or a student of an accredited educational institution.
Do not buy "bundles" or OEM software without the appropriate hardware. The most common misconception is that software purchased with a computer can be used or transferred to another computer. OS Licensing Q&A
Be wary of phrases like "for backup purposes only" or "cannot be registered".
Many believe that the possibility of being audited for software piracy is so low that the penalties are inconsequential. The reality is that most software piracy is discovered based upon tips from employees that avoid risk and claim rewards.
If your organization needs help getting legal with qualified licensing programs, contact Matrixforce Sales at (918) 622-1167 Option 3 or sales@matrixforce.com
To confidentially report software piracy, use the BSA Reporting Form or call 888.NO.PIRACY.
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