You and the law

Every piece of software used on your company's systems should be covered by a licensing agreement, known as the End-User Licensing Agreement (EULA). Unless the license states otherwise, you may only use one copy of the software on one computer. Individual software publishers set their own terms and conditions and most offer bulk license purchase arrangements so it's important to read the licensing agreement prior to installing the software.

The law states that you purchase a license but the copyright owner has sole rights to copy the work. This means it's illegal to copy software without the express permission of the supplier that created the product. Unauthorised duplication, use and distribution of software among employees constitutes copyright infringement.

In this case, it is the owner of the computer equipment, and the employer of the person who has loaded the unlicensed software, who are ultimately liable to prosecution under the principles of 'vicarious liability', which basically makes employers responsible for the actions of their employees. For more information on copyright law, click here.

This situation can lead to civil prosecution with unlimited fines and even a prison sentence of up to 10 years. In 2006, several business across Europe faced fines of over £10,000. Infact, one business was confronted with costs of over £90,000. Financial risks aside, your company’s reputation that may have taken years to build, can be destroyed overnight.
 
A recent research study conducted by BSA as part of the Risk Awareness Campaign suggests a severe lack of awareness regarding the level of illegal software in the workplace, particularly among small to mid-sized companies. Click here to read the press release.
 
As a responsible and professional business, unlicensed software use is a risk you will definitely want to avoid. If you’re in any doubt, the BSA is here to help. You can find guidance on how to manage your software assets effectively by visiting http://www.justasksam.co.uk.