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The Business Software Alliance (BSA), the voice of the world’s commercial software industry, announced today a settlement with A.E. Petsche Company. A.E. Petsche Company paid BSA $91,396 to settle claims that it had unlicensed copies of Adobe and Microsoft software installed on its computers. As part of the settlement, the company agreed to delete all unlicensed copies of software from its computers, acquire any licenses necessary to become compliant, and commit to implementing stronger software license management practices. BSA was represented by the law firm of Pepper Hamilton LLP in Philadelphia, PA.
A.E. Petsche Company (www.aepetsche.com) is the world's leading supplier of high-performance military/aerospace interconnect products and services. The company is headquartered in Dallas/Fort Worth, Texas, and operates sales offices and distribution centers worldwide.
“We understand that companies can make mistakes and have unlicensed software installed on its computers. That is why it is critically important that businesses implement a software license management program that will help keep them on track with their IT assets and help ensure that they don’t break federal copyright laws,” said Jenny Blank, Senior Director of Legal Affairs for BSA. “All businesses should have a program in place to protect from the risks associated with software piracy, especially those that do business with the military and US government.”
BSA was alerted to the unlicensed software use by confidential reports made on BSA’s website www.nopiracy.com. Each year, BSA receives more than 2,500 reports of software piracy to its website and hotline 1-888-NO PIRACY. The majority of BSA’s leads come from current or former employees who had information relating to the unlicensed software activity.
Know it / Report it / Reward it
Under BSA’s “Know it, Report it, Reward it” program, individuals who provide qualified reports of software piracy are eligible to receive up to $1 million in a cash reward. Despite BSA’s national Rewards Program offering as much as $1,000,000 in cash for qualifying reports of software piracy, many do not opt for the reward. Informal studies conducted by BSA suggest that a key driver for reporting software piracy is the motivation to simply “do the right thing.”
In a report released in July, which focused on piracy in eight states across the U.S., it was found that software piracy cost software vendors an estimated $4.2 billion. The state software piracy rate in 2007 was 20%, matching the national rate for the entire United States. Software piracy in Texas cost software vendors an estimated $627 million, which is the third-highest figure of the states studied and higher than the national figure for ninety-five countries. Lost revenues to a wider group of Texas software distributors and service providers cost an additional $1.7 billion, enough to hire more than 9,200 tech workers. The lost state and local tax revenues—$223 million—would have been enough to hire more than 4,000 experienced police officers.1
“Not only is software piracy a problem for the industry, but it really creates headaches for the companies involved,” said Blank. “The most disturbing aspect is that the lost revenues to tech companies and local governments could be supporting new jobs and much-needed social services in Texas.”
Under US copyright laws, software piracy can result in fines of up to $150,000 for each software title copied. In addition, the government can criminally prosecute for copyright infringement. If convicted, violators can be fined up to $250,000 or given a jail term of up to five years, or both.
BSA works with businesses to help ensure that their company isn’t at risk for financial, technical, and legal risks associated with illegal software. In addition to resources provided on www.bsa.org, BSA is working with the Small Business Administration to help small businesses develop smart strategies to manage their software. Through the partnership, BSA will educate up to 100,000 small businesses on software licenses, copyright laws, tips on how to purchase safe and legal software online, and how to develop a Software Asset Management program.
Businesses trying to determine whether their organizations are using unlicensed software can download the free software audit tools at www.bsaaudit.com.
1 2007 State Piracy study, IDC, conducted for the Business Software Alliance, 2008
The Business Software Alliance (www.bsa.org) is the foremost organization dedicated to promoting a safe and legal digital world. BSA is the voice of the world's commercial software industry and its hardware partners before governments and in the international marketplace. Its members represent one of the fastest growing industries in the world. BSA programs foster technology innovation through education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce. BSA members include Adobe, Apple, Autodesk, Bentley Systems, CNC Software/Mastercam, Corel, CyberLink, Dassault Systèmes SolidWorks Corporation, Embarcadero, McAfee, Microsoft, Minitab, Quark, Quest Software, Rosetta Stone, Siemens, Sybase, Symantec, and The MathWorks.
Janice Laurente, 202-715-1540janice.laurente@dittus.com
United States
