Are you covered on software licensing?

Lazy execs in the UK could be causing problems for their US bosses if they don't keep an eye on their software licensing.

The Federation Against Software Theft (Fast) said it has recently dealt with two US companies with UK operations that did not have enough licences for their software.

Fast said in June it won a $550,000 payment from a US-based chemical transportation organisation which had under-reported the software licensing needs of its UK subsidiaries. The month before another US company described by Fast as a "global logistics company" admitted to the software watchdog that its UK operation was under-licensed.

In each case, the company had surrendered responsibility for software checks to its overseas parent.

Fast director general John Lovelock said UK company bosses often use the excuse that all the software licensing is dealt with out of the US.

But this doesn't mean they can ignore under-licensing. In fact, Fast claims, poor reporting from UK subsidiaries could potentially put at risk compliance with the Sarbanes-Oxley Act, in terms of accurate reporting.

Robin Fry, a lawyer with Beachcroft LLP and a member of Fast's legal group, said there could be some painful financial penalties if a company is caught without enough licences as their supplier would be likely to demand the full list price, rather than the heavily discounted price many companies can negotiate.

silicon.com Financial Services

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Seperately - but still on the subject of compliance - a report from software company Cognos warned that two-thirds of banks in the UK are taking a 'bare minimum' approach to Basel II compliance.

With the average bank spending around €88m on meeting the requirements, many financial organisations see Basel II as an expensive regulation to comply with, Cognos said. The company added that taking a proactive approach to Basel II will ensure data is available across the business, from senior management down to the individual credit officer.