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Bankers Warranty Group Inc., an insurance product and services company based in St. Petersburg, FL, is learning the hard way that having installations of unlicensed software on company computers costs more money than it saves.
The Business Software Alliance (BSA), which represents the world’s commercial software industry, announced today that Bankers Warranty Group Inc. paid $70,000 to settle claims that it had unlicensed copies of Adobe, Microsoft and Symantec software installed on its computers. As part of the settlement agreement, Bankers Warranty Group Inc. 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. BSA and its members were represented by the law firm of Donahue Gallagher Woods, LLP of the San Francisco Bay Area.
BSA was alerted to the unlicensed software installations by a confidential report 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 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 2008, the BSA paid a total of $136,100 in rewards to 42 individuals for qualified tips about software piracy. Despite the rewards program, many opt not to take 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.”
Software piracy affects more than just the software industry. For every $1 of PC software sold, there is another $3 to $4 of revenues lost to local IT support and distribution services due to the use of unlicensed software. Piracy also saps local governments of needed tax revenues and spreads information security risks. “During these challenging economic times in Florida, companies shouldn’t add burdens to the local economy, nor should they risk exposing their businesses to the dangers inherent in using unlicensed software,” said Jenny Blank, Senior Director of Legal Affairs for BSA. “Once technical issues begin to appear as a result of pirated software, support costs to fix the situation can be extremely high.”
A spokesperson for the company said “Bankers Warranty Group Inc. is committed to strong software asset management practices, and we appreciate the opportunity to identify and correct any license-compliance irregularities. Businesses should conduct thorough software licensing reviews as part of their due diligence prior to finalizing any purchase of computer assets from other parties.”
Financial Risks
Like Bankers Warranty Group Inc., businesses found to have installations of unlicensed software could pay thousands of dollars in damages for infringing BSA members’ copyrights. A company found using pirated software and violating copyright laws can be liable for 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 or installing unlicensed software, it typically contacts the company and asks it to conduct an audit of its software assets. Then both parties work toward a resolution that involves immediate legalization of software. If an agreement cannot be reached, BSA may opt to file a lawsuit, as in last July’s case with Taney Engineering of Nevada.
Security Risks
By installing or utilizing pirated software, users’ networks and computers are vulnerable to serious IT security threats. Company computers could be infected with trojans, viruses, malware, and other threats. The lack of security could also compromise sensitive data and the personal information of its employees and customers. As companies and government agencies have found, having confidential information exposed to outsiders is costly and can also put an organization’s reputation at risk.
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 partnered with the U.S. 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 Software Asset Management program. Through the partnership, BSA helps small businesses develop smart strategies to manage their software.
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
