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Rid Your Business of
Software Piracy: 7 Tips
by Monte Enbysk
reprinted with permission from the Microsoft Small Business
Center
Pirates still roam freely in the ocean of software out
there, but if your business is among the pirates, it could
end up costing you literally and figuratively.
You may very
well be a smart, community-minded business owner. But if
your company is using pirated software — and you condone it,
you aren't aware of it or you don't really give a rip —
you're not a responsible business owner. And you are taking
unnecessary risks.
No, you're not
alone. In the United States, about one-fourth of the
software programs used today by businesses are illegal
copies, according to the statistics from the Business
Software Alliance (BSA), an active industry group. For U.S.
small businesses, those with 100 or fewer employees, the
piracy rate is even higher: about 40%. While those numbers
are bad enough, the piracy problem worldwide is worse —
although software piracy worldwide has decreased since 1994,
some $13.08 billion was still lost in 2002 due to pirated
software.
Indeed,
software piracy continues to generate negative publicity,
especially for those busted for it. But that isn't stopping
a lot of good people from doing it (or supporting what has
become an underground industry, run similar to drug
trafficking).
Obviously,
there's a moral argument for avoiding casual copying and
taking the time to get your software licenses into
compliance. Here it is: You are ripping off an industry that
feels the same way you would if your products were illegally
copied and then sold or distributed in the marketplace,
robbing you of revenues and profits.
But there are
business arguments for it, too, even if pirating software —
or supporting the black market by buying counterfeit
software at
dirt-cheap prices — is helping your business make it through
tough times. Here are the dangers of using pirated or
counterfeit software:
You aren't going
to get the product support you need when a problem occurs.
You aren't
going to get upgrade information or special (legal) deals
that might come in handy.
Without genuine
software, you can't be sure what you get won't be infected
with viruses or tainted by broken or incomplete code.
You likely
aren't managing your software inventory very efficiently,
especially if you mix legal with pirated software and can't
account for which is which, or whether employees have only
the software they need or use.
You'll have to
do some creative accounting for tax purposes if, say, you
bought 10 new PCs in the past year and only one set of
software applications.
Last but not
least, you are breaking the law. You could conceivably get
caught if a disgruntled employee reports you to the BSA,
which has a vigorous piracy watchdog program. Getting caught
could mean fines of $150,000 or more, plus a hit to your
"community-minded" image.
If you want to
make this the year you bring your company's software
inventory into compliance, here are seven tips:
1. Recognize
you have a problem that may take some time and resources to
resolve. That's a key first step. But several tools are
available online to possibly make it an easier task that you
think.
2. Assign
someone in your company to be in charge of this effort.
It could be your information technology manager or
specialist, if you have one. It also could be the person who
oversees your accounting or purchasing transactions. The key
is to bestow responsibility on a company employee to get the
job done.
3. Check out
the online management tools at your disposal. Microsoft
(which is my employer) and the Business Software Alliance
both have software management guides that can help you
organize and maintain your software inventory. You will get
a better handle on what you need to purchase and what you
need to eliminate to become compliant. These resources will
help you determine if you have purchased genuine or
counterfeit software. Yes, counterfeiters have gotten that
good, though the industry is finding ways to fight back
(such as the edge-to-edge holograms for Office XP, Windows
2000 and Windows XP CD-ROMs).
4. Consider
hiring a reseller or IT specialist you can trust. A
knowledgeable and trusted software reseller could handle
software purchasing for you, and many also now will help you
clean up and manage your inventory. "There are advantages to
having a relationship with a reseller, so it might be worth
your while to develop one," says Kneko Burney, chief market
strategist for business infrastructure and services at
In-Stat/MDR.Why do I say hire a reseller "you can trust"?
Because many resellers themselves buy counterfeit software
at online auction sites and elsewhere, then turn around and
sell it to their clients. If you got an unbelievably low
price for a quantity of software, you should ask a reseller
if it is genuine, says Anne Kelley, a Microsoft senior
attorney specializing in anti-piracy efforts. "If a reseller
is providing you with counterfeit software, you will see it
in his eyes," she says.
5. Be wary
of any software sold through online auction sites.
Again, that's where much of the counterfeit product on the
market today is sold. "Based on our own research and
evidence, more than 90% of the software distributed over the
Internet [through auction sites] is counterfeit," Kelley
says. The BSA offers "Ten Tips for Safe Software Shopping,"
which you can find in the Global Resources section of the
BSA Web site? home page (www.bsa.org).
6. Take time
to get a basic understanding of software licensing
agreements. In many small and midsized businesses,
brand-new PCs go to the highest execs, and the others are
handed down through the pecking order. Software licenses
often follow the PCs, and they shouldn't, notes Mike
Lauricella, an analyst with the Yankee Group. But too many
businesspeople associate a license with the machine, rather
than the user. As a result, he says, many businesses have
users with more software licenses than they need or could
ever use — a wasteful situation, often coupled with
illegally copied software going to those who really need the
licenses. Carefully managing your software inventory and
understanding how licenses work can help you avoid such
inefficiency.
7. Clean up
your software inventory at least once a year. Whether
you outsource the job to a reseller or IT specialist, or do
it in-house, make reviewing your inventory an annual event.
Purchase the software and sign up for the licenses you
really need, and comply with the terms. Get rid of the rest.
Eliminate piracy from your business plan.
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