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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.
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.
Read and understand your license agreements.
Many
software manufacturers have distinct policies regarding software
licensing.
Appoint a software manager. There should be a clear assignment of responsibility for
monitoring compliance of software licensing.
Perform periodic audits on all computers(especially on portable devices) to verify installed software.
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.
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.
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:
Product and version
Publisher
Registration number
Date and source of purchase
Name of user and user location
Hardware serial number (server, PC, laptop)
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.span style="mso-spacerun: yes"> 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
To determine if your business is software compliant, you must figure
out these three things:
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.
o 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. 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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