£50,000: The cost of unlicensed software for four businesses

Settlements and compliance costs stack up

By Jo Best, 18 August 2009 15:43

NEWS

Four manufacturing companies have reached legal settlements worth thousands of pounds over the use of unlicensed software.

Software industry body the Business Software Alliance (BSA) took action against the four companies who were unable to produce licences for all the software installed on their PCs.

The companies, which included a manufacturer of car parts and a company that makes office furniture, have paid out more than £50,000 in settlements and the cost of new licences.

The largest settlement came in at £20,000 with the most spent on new licences reaching £10,000.

All four businesses were found to be using unlicensed Microsoft software, while individual businesses also had instances of unlicensed versions of Adobe and Autodesk software.

Last month the BSA also settled legal action with three London companies, with settlements and the cost of buying the correct software licences totalling more than £100,000.

Comments

There is 1 comment. Join the discussion

  1. 1. Karen Conneely

    UK businesses certainly do need wake-up call regarding software asset management.

    From the new powers accorded to the Federation Against Software Theft (FAST) to the importance of ISO 19770 software asset management standards, the stakes have recently been raised extremely high. Yet many organisations still fail to recognise that poor software licensing policies within the IT department could result in up to a 10 year jail term for company directors - not the IT team supposedly in charge of the software asset.

    Organisations cannot afford to rely on piecemeal policies and inadequate asset information. It is only by instigating rigorous asset acquisition and disposal policies and recording detailed information about the software loaded onto every machine, including its serial number, that any company can attain real control over the software asset.

    With this information to hand, organisations can immediately check for unlicensed software and manage user numbers against agreed licenses. If a machine is scrapped, rigorously updating the asset register will ensure that software can be reloaded on another machine, if the license allows. Furthermore, using alerts, an IT manager can be warned if user levels are reaching the license limit.

    Inaccurate software asset registers are becoming a corporate liability. And, given the growing penalties facing senior managers across the UK, inaccurate software asset information is a board level issue.

    Yours sincerely

    Karen Conneely
    Group Commercial Manager
    Real Asset Management

Post your comment

In order to post a comment you need to be registered and logged in.

Log in or create your silicon.com account below

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy.

Questions about membership? Find the answers in the Membership FAQ