Major Crackdown on Unlicensed Software - Severe Fines Paid

Five local cos. pay software-misuse settlement
Boston Business Journal - Boston Business Journal

Five Boston-area companies are paying the Business Software Alliance nearly $500,000 in total to settle claims they used unlicensed copies of software.

Target Analysis Group Inc. agreed to pay $175,000 for using unlicensed copies of software from Microsoft Corp. (Nasdaq: MSFT) and Adobe Systems Inc (Nasdaq: ADBE). The Cambridge firm works with nonprofit programs on their fund-raising efforts.

Boston-based Silver Oak Solutions agreed to pay $138,000 for unauthorized use of software from Microsoft, Adobe, Macromedia Corp. (Nasdaq: MACR) and Symantec Corp (Nasdaq: SYMC). The company helps government institutions and other organizations audit their expenses on supplies.

Sapient Corp. (Nasdaq: SAPE), the Cambridge Public Schools and Boston Partners Management all paid fines under $100,000.

The Washington, D.C.-based BSA, whose membership includes most large software vendors, receives tips on unauthorized software use and takes remedial action with the culprits.

"These settlements demonstrate that even well-managed, reputable organizations need to be fully attentive to software licensing requirements," said Jenny Blank, BSA director of enforcement, in a prepared statement. "Organizations should implement policies and procedures in order to maintain compliance and demonstrate to their employees the importance of using licensed software. The cost of doing otherwise can be very high."

Two Valley firms nabbed with unlicensed software
The Business Journal of Phoenix - by Adam Kress The Business Journal

Two Phoenix-area companies have been burned for using software they shouldn't have.

The Business Software Alliance, a watchdog group representing the nation's leading software manufacturers, collected a total of $250,000 to settle claims that Ideal Hire Inc. and Meritage Corp. had unlicensed copies of software programs installed on office computers.

In addition to making their respective payments, the companies agreed to delete any unlicensed copies, purchase replacement software and strengthen their software management practices.

Ideal Hire Inc., a Phoenix developer of technology solutions to improve recruitment efficiency, paid BSA $50,000 after an audit revealed the company had unlicensed Adobe, Microsoft and Symantec software programs on its computers.

"While it appears that the license violations originated from assets purchased from a third party, Ideal Hire immediately rectified the software license violations upon completion of a software audit," said Bob Crawford, president of Ideal Hire.

Meritage Corp., a home builder with corporate offices in Arizona and Texas, paid BSA $200,000 after an audit showed firm had more installations of Adobe, Microsoft, Sybase and Symantec software than could be verified.

"Meritage thanks BSA for working with Meritage on its extensive self audit, which identified certain gaps in our record keeping related to software," said Larry Seay, chief financial officer of Meritage. "New procedures, including some suggested by BSA, and hiring of new personnel, has markedly improved tracking of all software after purchase."

For the first time in the United States, BSA is offering rewards of up to $50,000 for qualifying reports received via its hotline or online reporting form before midnight (PST) on Feb. 28.

According to BSA, most investigations begin with a call to BSA's hotline, 1-888-NO PIRACY, or with a report to BSA's Online Reporting Form, at www.bsa.org. Both of these companies were reported to BSA through its online reporting system. BSA's attorneys contacted the organizations, which cooperated and conducted audits.

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