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Software
Audit and License Compliance
Is your company at risk?
Does your company take software compliance seriously?
If not, your company could be at risk.
Many small-and-medium-sized businesses simply don’t have the
internal resources to manage software compliance, and yet it is
extremely important for every company to develop a policy around
software use.
Just how important is it?
Well, let’s put it this way: In the case of software piracy, whether
unintentional or malicious, what you don’t know CAN hurt you. It is both
illegal and risky to be in violation of software licensing agreements.
You can be subject to severe penalties as a company and/or an individual
who either knowingly or unknowingly obtains, uses, or possesses software
illegally. Civil copyright
infringement carries fines up to $150,000 per title infringed, and
criminal violation carries fines up to $250,000 per title infringed and
up to 5 years imprisonment!
Even if you don’t get caught, other risks associated with “pirated”
software (like viruses) can wreak havoc on a workstation, server, or on
your entire corporate network.
With the software industry losing billions of dollars each year, the BSA
(Business Software Alliance) is cracking down on offenders. The BSA is a
well-funded organization that will audit businesses suspected of
mismanaging software licenses or engaging in outright piracy.
And believe us: they don’t care whether you knowingly did
something wrong or not. Crying ignorance of copyright laws and the
content of your licensing agreements will fall on deaf ears at the BSA.
That’s why it’s in your company’s best interests to keep
compliant with your various software licensing agreements.
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Here are some general guidelines to help maintain compliance with
software licensing agreements:
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Establish a policy for software acquisitions, registration and use.
Be sure to cover software loaded on servers as well as on individual
PCs and laptops.
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Read
and understand your license agreements. Many
software manufacturers have distinct policies regarding software
licensing.
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Appoint a software manager.
There should be a clear assignment of responsibility for monitoring
compliance of software licensing.
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Perform periodic audits on all computers
(especially on portable devices) to verify installed software.
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Establish a software code of ethics.
Some companies have users of their computers sign a statement
stating they have been informed of software laws and they have
accepted responsibility for compliance.
Many also include an Internet usage policy, which can cover
downloading software on company equipment.
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Maintain a
library of software licenses.
Accurate records should be kept regarding all software purchased.
Include documentation for proof of purchase in the form of
dated purchase material, such as a purchase order or invoice,
showing the number of copies of the software purchased.
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Maintain a software
log.
Knowing what you have in terms of software is key to maintaining
compliance with your software licenses.
Keep a log of:
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Product and version
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Publisher
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Registration number
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Date and source of purchase
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Name of user and user
location
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Hardware serial number
(server, PC, laptop)
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Incorporate a policy regarding use of
personal software on corporate computers.
Personal software is still subject to the license agreement for that
particular software. Often these agreements stipulate the
application must first be erased from the user's home computer
before it is loaded anywhere else. In other words, there is a
difference between single-user and
single-terminal software.
If
you allow your employees to load personal software onto your
corporate computers, the supporting purchase documentation should be
turned over to the company, or the owner should agree to be
responsible for providing the documentation upon request.
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When reviewing your licensing agreements, be sure you understand the
terms.
Some software applications may require the purchase of additional
licenses when you upgrade a server, purchase new desktops, or add
additional users. Some
agreements may expire, requiring you to purchase new licenses to
continue using the software legally.
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To determine if your business is software compliant, you must
figure out these three things:
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If you have more installed copies of an application than you have owned
licenses, then there is likely a violation of the terms of one or more
licensing agreements.
Remember, licenses are not necessarily the same as purchased software
discs.
Some software packages are purchased with multiple licenses,
allowing you to legally install the same application on multiple
computers. This is usually
the case with server-based software, whereby the application is
installed on a server, then made available to multiple users (clients).
An internal audit may prove that you own many more licenses than you
have installed copies of software.
Clearly you’re in compliance, but your business may have spent too much
money for licenses not needed.
Don’t be so terrified of compliance that you overspend.
So What’s a Small Business To Do?
These are tough issues for a growing business to manage.
You aren’t certain of your future needs, so you either don’t
purchase enough licenses and jeopardize compliance, or you purchase too
many and waste precious capital.
There is an easier way. You can
outsource your IT to ITonCommand.
You’ll no longer have to worry about having too few or too many
licenses. ITonCommand is a
per-user subscription-based service, so you pay only for the
applications each user needs.
We manage and maintain your Microsoft software licensing, so you
never even have to think about it.
Now doesn’t that sound a lot easier than doing it yourself?
Before you pay another dime for licenses you don’t need, before
you spend another minute thinking about software compliance, piracy, and
copyright infringement, and before you lose another minute of sleep
worrying about what you don’t know, call ITonCommand today at
1-877-RUN-ITOC
(786-4862).
We’ll help you untangle the web of software licensing confusion and free
you to focus on doing what is most important: running your
business, not your network.
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