The British Software Alliance (BSA) has taken legal action against four UK companies for using unlicensed software. Fines totalling over £50,000 were handed out for copyright infringement after discrepancies were found between software on the company computers and the licences produced.
Office furniture products manufacturer and supplier Samuel Bruce Limited agreed a £20,000 settlement for unlicensed use of Adobe, Autodesk, and Microsoft software on approximately 50 computers. As well as the fine, the firm will also pay £8,000 to make the licences legal.
Manufacturer J Tools Limited paid £7,000 for using unlicensed Autodesk and Microsoft software and will pay an additional £10,000 to purchase legal software.
A third manufacturer, Garran Lockers Limited, paid £5,000 in costs and new licences after using unlicensed Microsoft software on around 20 computers.
“In the manufacturing sector, ensuring orders are completed on time and within budget is vital. If unlicensed software is used, companies do not have access to the same support services as legal versions, which can result in downtime and major delays, impacting on profitability and the ability to deliver,” said Julian Swan, director, compliance marketing EMEA, BSA.
“In an industry where competition is fierce and reputation is paramount, businesses should not risk jeopardising their future by trying to cut corners – perceived cost savings from using unlicensed software is just an illusion,” Swan said.
As well as the heavy fines handed out to the guilty companies, their reputation is also likely to take a battering, according to the BSA.
International Automotive Components Group Limited (IAC) was the final company involved in the case. The car parts manufacturer was using unlicensed Microsoft server software at a site it acquired in 2008.
“The IAC case demonstrates the importance of showing due diligence and auditing software assets when purchasing or transitioning to new sites. The same principle applies to mergers and acquisitions; it’s very common for companies to overlook the legality of their inherited software estate. Mistakes tend to happen when the management consider software compliance as just an IT problem,” Swan said. “They do not realise that on a larger scale, failure to manage their software properly could expose the company to legal redress, not to mention operational failure as a result of running unlicensed and unprotected software.”
While the new is undoubtedly encouraging, more can be done to combat software piracy, says FrontRange director Matt Fisher.
“Organisations need to take action to stay on top of their software usage to avoid such significant fines. The BSA is also right to point out the reputational damage which goes hand in hand with the financial penalty, as businesses cannot afford to lose the trust of consumers and partners in the current economic climate,” he said. “With tools to facilitate Software Asset Management readily available and simple to implement, there really is no excuse for any organisation to be found under-licensed, and all businesses should take heed of those being punished for non-compliance.”
