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Keeping Your Software Legal This article was inspired by one of those extortion letters that the Business Software Alliance sent out to Spartanburg businesses last November. They offered to give me a "grace period" to get legal before they came in and conducted an audit. I'm sure a lot of other small businesses around here got these letters. I try to stay legal on my software, plus I'm a pretty small fish, so I wasn't too worried about them auditing my one PC, but I know a lot of businesses in this area would be in trouble if they were to be audited. Staying legal on software is kind of like flossing your teeth every day. Everyone knows they should do it, but sometimes you just sort of let it slide. When MS Office is going for around $500 for the Professional version, it is very tempting to use that one CD for every PC. However, you should resist that temptation and keep it legal! Anyway, here's the article: Come on – admit it. You've done it. I've done it. Nearly everyone who has ever had a PC has done it at one time or another. Done what? Loaded software on their PC that they did not legally own. It's easy to do. You can “borrow” a CD from a friend, make a quick copy on your CD burner, write down the CD key and presto – save $100, or $500 or more, depending on the cost of the program. Or you can buy one legal copy of something and load it on every system in your office. Any of these acts can be considered software piracy and can cost your business a lot of money in the long run. One thing I have found over the years is that many computer users do not understand the license agreements included with most software programs. Did you ever actually read one of those long, legalistic license agreements that you have to agree too when installing a program? I didn't think so. Of course, these are written by lawyers for the benefit of the software company, not for your enjoyment. Just for fun, or in case you have trouble sleeping, try reading one of these one day. Here's what it says in a nutshell:
There's a lot more to it than that, but my space is limited here. If you want to read the full text of your EULA (End User License Agreement) for any MS Office product , go into the help menu and search for EULA. How can a small business effectively manage their software compliance? First make sure that all employees know that they are not allowed to install any software that was not legally purchased on your business computers. Secondly, conduct a software inventory of your company. Uninstall or buy licenses for any programs that are not legal. Create a database to document all software that your business has purchased. Keep a record of when and where it was purchased and make copies of invoices, if possible. The Business Software Alliance is an industry group which works to promote the legal use of software (or to harass business owners, depending on your point of view). They maintain a web site and 800 number which allows anyone to report piracy. All it can take is one phone call from a disgruntled employee to trigger an audit of your business which can cost thousand of dollars in fines if you are found to be using pirated software. The law allows for fines of up to $150,000 for each instance of pirated software found in a business. Of course, you can always bet that you won't get caught, and statistically, you probably won't. But are you willing to bet your business on it? Is is easy to think that a huge company like Microsoft or Lotus makes zillions of dollars a year and won't miss your $400 or so. But that doesn't make it right to pirate software. Stealing from a giant company is still stealing. For small business owners, staying legal with their software can be expensive, but in the long run, it's the right thing to do. Here are some interesting links that you might want to look at: The Business Software Alliance is a watchdog organization which audits businesses on behalf of a wide range of software vendors. Microsoft maintains an extensive anti-piracy web site. I found this page from a small software consulting company that explains the Microsoft license agreement better than anything I have ever read. http://www.cpearson.com/excel/EULAFAQ.htm The U.S. Department of Justice maintains an interesting web site that documents cases involving intellectual property. If you are tired of paying $500 for MS Office, you might want to try these legal alternatives.
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