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The Business Software Alliance (BSA), the voice of the world’s commercial software industry, today announced that Mueller Services, Inc., of Tonawanda, NY paid $62,270 to settle claims that it had unlicensed copies of Adobe and Microsoft software installed on its computers. As part of the settlement agreement, Mueller agreed to delete all unlicensed copies of software on its computers, purchase any licenses necessary to become compliant, and commit to implementing stronger software asset management (SAM) practices.
Mueller Services has provided independent data collection and verification for over 25 years.
BSA was alerted to the unlicensed software use by a confidential report made on the organization’s Web site www.nopiracy.com . Each year, BSA receives more than 2,500 reports of software piracy. The majority of BSA’s reports come from current or former employees who had information related to the unlicensed software activity.
Through 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 cash rewards. In 2009, the BSA has paid a total of $84,550 in rewards to 21 individuals for qualified tips about software piracy. Despite the rewards program, many opt not to take the reward, citing their motivation as simply “to do the right thing."
“If one message is loud and clear, it’s that doing the right thing by using legal software is the key to reducing piracy, strengthening local IT businesses, and creating the jobs that are needed during these challenging economic times,” said Jenny Blank, Senior Director of Legal Affairs for BSA.
According to the Sixth Annual BSA-IDC Global Software Piracy Study, the retail value of unlicensed software installed in 2008 -- representing revenue losses to software companies -- was estimated at $9.1 billion in the United States and $53 billion worldwide.
But software piracy affects more than just the software industry. Piracy also saps local governments of needed tax revenues and often spreads information security risks. Reducing piracy brings tangible economic benefits to the local IT industry and local communities. For every $1 of PC software licensed, there is another $3 to $4 of revenues for local service and distribution firms, as well as tax revenues to support local services.
“Mueller Services collaborated fully with BSA in resolving the current licensing issues. The audit has permitted us to implement processes that will assure that software licensing issues do not resurface and will also contribute to the protection of our own intellectual property,” said John Noe, President of Mueller Services.
Financial Risks
Businesses found to be using unlicensed software may be required to pay thousands of dollars in damages to the BSA. A company found using unlicensed software and violating copyright laws can pay damages of up to $150,000 for each software title copied. If convicted, violators can be fined up to $250,000 per title or given a jail term of up to five years, or both.
When BSA receives a tip about a company using pirated software, it typically contacts the company and asks it to conduct an audit of its software assets. If unlicensed software is found, the next step is for both parties to work toward a resolution that involves immediate legalization of software. If an agreement cannot be reached, BSA may file a lawsuit and obtain a court’s judgment, as it did most recently against Taney Engineering of Nevada. Security Risks
Pirated software can also pose security risks to the users’ networks and computers. Company computers can be infected with trojans, viruses, malware, and other threats, and this in turn can expose sensitive data and personal information of employees and customers. As companies and government agencies have found, having confidential information exposed to outsiders is costly and can put an organization’s reputation at risk.
Tools & Resources to Ensure Compliance
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 the educational and self-audit resources provided on www.bsa.org, BSA has partnered with the US Small Business Administration to 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 SAM program.
Businesses trying to determine whether their organizations are using unlicensed software can download the free software audit tools at www.bsaaudit.com.
Please visit our Facebook page under keyword Business Software Alliance (BSA) Anti-Piracy.
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, Corel, CyberLink, Dassault Systèmes SolidWorks Corporation, Embarcadero, McAfee, Microsoft, Minitab, Quark, Quest Software, Rosetta Stone, Siemens, Sybase, Symantec, and The MathWorks.
Matthew Clark 202-728-8766 matthew.clark@fd.com
United States
