What You Should Know
About Software
—Part 1—
Inadvertent Software Piracy
You can easily be breaking the law, and exposing yourself to civil liabilities, by doing something seemingly innocuous!
You get software from many sources—some of it comes with your computer, some of it you pay hundreds of dollars for at the store, and some of it you download (either paying for it or not).
What many people don't realize, though, is that all commercial software you buy is licensed, not sold. While you may own the hologram-stamped CD or DVD, and all the nice colorful manuals and the glossy cardboard box or plastic case it came in, the contents of the CD/DVD (the software itself) are protected by copyright. This is why every software product comes with some kind of license agreement, telling you how many computers you can install it on, or how many users can use it at once. It is usually called an End User License Agreement or EULA. This can be found on a printed card in the box, in a file on the CD/DVD, or on the publisher's website. It will certainly pop up on your screen when you try to download or install the software, requiring you to indicate that you accept the terms to continue.
For example, when you buy most any software application such as Adobe Photoshop, Corel WordPerfect, or Microsoft Office, each copy is usually licensed for a single user, which means you can install it on your desktop computer and your laptop, and use it on either computer (but not at the same time). If you subscribe to a service that requires specialized software, such as a legal research system or jury instructions compiler from Westlaw, you will likewise usually pay for a certain number of users. Some other products, such as the Microsoft Windows operating system, are licensed per computer only, meaning you have to buy a separate copy for each computer or laptop you install it on, no matter whether it's the same user.
So, you can't legally borrow someone else's Microsoft Office DVD and install it on your computer without paying for your own copy. And you can't buy just one copy of Adobe Creative Suite and install it on everyone's computer at the office. Granted, it seems ridiculous you would have to pay hundreds of dollars for each of, let's say, four users (Adobe Creative Suite is $1,300 per user for the standard edition), when each user will only use it occasionally and you want to have it ready-to-go on each of their workstations. But, frankly, software companies have the right to ask for as much as they can get for the results of their work.
Fortunately, software companies have adjusted their licensing models over the years to better align with how we, the end users, have our businesses and computer networks arranged. For example, the "per user" model, which allows an individual to put the same copy on his work computer and home computer, is relatively new for most software products that offer it, and reflects the fact that so many people now have more than one computer. Also, multi-user or family pack licenses have recently been introduced. For example, Microsoft offers a discounted three-pack for the Home & Student Edition of Microsoft Office, and Apple offers a Family Pack of five licenses per household. And more and more pay-as-you-go solutions are available in the so-called cloud computing environment.
If you violate a EULA by installing software on computers you're not supposed to or letting too many people use it at the same time, you are violating the software publisher's copyright, and the software publisher could sue you for damages.
Then again, so what? How would anyone get caught, and what are the penalties? Well, there are agencies that actively solicit employees of companies to report suspected software piracy, offering confidentiality and up to a million-dollar reward! An example is the Business Software Alliance, whose website you can visit via this link.
To read a revealing article on how BSA works on the Windows IT Pro information web site, click here (you might be presented with an advertisement first).
To read an example of how BSA is viewed from the perspective of businesses targeted with accusations of piracy, see this page on the website of a legal services firm that deals with these issues on behalf of consumers, called Scott & Scott, LLP.
Clearly, just being unaware of how to properly deploy your software can expose your organization to significant risk. Sure, people have challenged the validity of some license agreements, and even won against giant software companies. But, these were unusual situations, and the risk and cost of the battles were enormous. And, overall, copyright law tends to fall on the side of the software companies.
As part of your service agreement with J.D. Fox Micro, you may optionally request a software licensing audit. We will then help you fix any problems inexpensively, internally, and confidentially.
Cheap software
Retail markup on software is relatively low. If you find software available for a fraction of the standard retail price you find in conventional outlets, it is almost certainly not the version you are expecting, and it may be patently illegal for you to use. For example, it might be a special edition for educational or government institutions, which is not licensed for a business to use. Or, it might simply be stolen. J.D. Fox Micro has investigated some of the more common outlets for deeply discounted software who proclaim that their software is genuine and legal, and has found that the software you receive from such outlets will not be what they say it is.
One way to save on software licensing is to avoid retail. Retail software is so expensive because with it you get the right to call the publisher itself (such as Microsoft, Symantec, or Adobe) for technical support. But, there are outlets through which you can acquire the same software for less money, most commonly when you buy a new computer. In such a case, the computer manufacturer (Dell, Acer, Panasonic, Sony, etc.) provides the technical support, and so gets a huge discount on the price of the software from the publisher, which they pass on to you.
Finally, you can also rely on a competent Information Technology services provider, such as J.D. Fox Micro, to help you take advantage of bulk discounts offered by virtually all software publishers for purchases of multiple copies of valuable software packages for your business.
Click here for Part 2 of this article.
Browse More Articles
Resource Center Home