MAY 01, 2017 | SOUTH AFRICA
Unlicensed Software Cost SA Firms R3.64m in 2016, Says BSA | The Software Alliance
SOUTH AFRICA – MAY 2, 2017 – South African companies paid more than R3.64 million for using unlicensed software in 2016. This is according to data from BSA | The Software Alliance, a non-profit, global trade association created to advance the goals of the software industry and its hardware partners. This figure includes settlements (R1,66 million) and the cost of acquiring new software to become compliant (R1.98 million).
In 2016 BSA received 230 reports in South Africa alleging the use of unlicensed software products of BSA member companies. Most of these reports came via BSA’s No Piracy portal from current or former employees, detailing the amount of software installed without the appropriate license coverage.
“Software piracy negatively impacts software publishers and creates unfair competition for legitimate companies. But, more than that, it exposes organisations to legal, financial and reputational damage through security breaches and data loss, not to mention the negative economic impacts through job losses and lost tax revenue,” says Darren Olivier, partner at Adams & Adams, legal counsel for BSA.
In one case presided over by BSA, an architecture firm Zulu Architectural Designers was found using unlicensed software of BSA members and is set to pay over R100,000 in damages. In another case, a telecommunications firm Comsol operating out of Midrand paid nearly R80,000 in damages for copyright infringement. Ultimately, both companies paid more to use unlicensed software than they would have paid if they had initially used legitimate licenses.
“Often, IT departments are not even aware that staff have installed unlicensed software on their networks. This makes the business more vulnerable to cyber-attack because unlicensed software is not patched with the latest security updates, which increases the likelihood of malware entering the network. Should that malware expose sensitive company and client information, the reputational damage could be massive and it will take a long time before the business can rebuild that trust with customers, if at all,” says Darren Olivier
South Africa tops the global stats for economic crimes, with cybercrime now the fourth most reported economic crime in the country. Almost a third of surveyed organisations reported cybercrimes in the past 24 months, which makes it critically important for a company to be aware of what software is on its network. One of the best ways to improve software license compliance is through raising awareness of the negative financial and operational impacts faced by companies that use unlicensed software.
In South Africa, 33% of software installed on computers is not properly licensed, representing a value of $274 million. While this is a slight decrease from previous surveys, BSA notes a need for increased awareness on the risks of installing and using pirated software, as well as increased cooperation between the public and private sectors to combat software piracy.
To encourage compliance and best practice, BSA offers an up to R100,000 reward to those who report piracy on its website, if the information provided results in a settlement. All information relating to the copying, downloading, sharing, selling or installing of unlicensed software onto work computers will be treated as confidential.
Thandeka NonyaneWE Communicationstnonyane@we-worldwide.com(011) 550-5400
BSA | The Software Alliance (www.bsa.org) is the leading advocate for the global software industry before governments and in the international marketplace. Its members are among the world’s most innovative companies, creating software solutions that spark the economy and improve modern life. With headquarters in Washington, DC and operations in more than 60 countries around the world, BSA pioneers compliance programs that promote legal software use and advocates for public policies that foster technology innovation and drive growth in the digital economy.
소프트웨어 연합(BSA | The Software Alliance, 이하 BSA)(www.bsa.org)은 각국 정부를 대상으로 세계 시장에서 전 세계 소프트웨어 업계를 대변하고 옹호하는 선도적 연합체입니다. 세계의 가장 혁신적 기업들이 회원사로 참여하며 경제에 활기를 불어 넣고 현대의 생활을 향상시키는 소프트웨어 솔루션을 만들어 내고 있습니다.
워싱턴 DC에 본부를 두고, 30개국이 넘는 국가들에서 운영되는 BSA는, 합법적 소프트웨어 사용을 증진시키고 기술 혁신을 촉진하며 디지털 경제의 성장을 추진하는 공공 정책을 지지하는 준법 프로그램들을 선도합니다.