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Unlicensed software costs UK businesses dear

Business Software Alliance is losing the fight
Mon Mar 28 2011, 16:55

LOSING IS never easy and the Business Software Alliance is failing to make much of an impact on the amount of unlicensed software in UK businesses.

According to the BSA's figures unlicensed software cost UK businesses £2.2 million in 2010, more than twice as much as it cost in 2009.

Things might be looking up at the BSA and vendors however, as the organisation said that the figure included the cost of acquiring new software licenses in order to appease the compliance cops and any settlement costs that they had to pay out.

Michala Wardell, chair of the BSA UK Committee, said, "This is money businesses can ill-afford to lose, especially during an economic downturn. Companies that don't comply can expect to face stiff financial penalties as a consequence."

The BSA cosily reminded firms that might have also had to cut salaries, staff and overtime during the ‘economic downturn', that it pays whistleblower rewards to disgruntled employees.

Julian Swan, director, compliance marketing EMEA, BSA, explained, "Informant reports come through frequently and businesses need to be aware that it is easy for employees to blow the whistle on unlicensed software use."

The £2.2 million costs only come from the BSA's activities, and firms will also have incurred legal costs and other financial penalties as the result of any unlicensed use, and in some cases will have had to deal with vendor sales teams and support staff as a result. µ

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Comments
Mandatory prison time

OK, let's be equal:
whenever a software has been lacking a promoted feature or bugs that prevents it's usage then that's fraud or treachery and the jail time begins! The estimated jail time for Bill Gates alone is over 13 billions years.
If you find this amusing then it served it purpose. Jailing people for using some software at home is nonsense.
Also that music peace on you other-than-iPod would make you pay thousands.
For God's sake!
When did we allow greedy companies to take over the law?
BTW: I'm a IT Consult and everybody pirates everything I'll have to starve.
Lucky enough not so...I think I'll take a ride on my Hayabusa...

posted by : CyberAngel, 13 April 2011 Complain about this comment
Crime = Economic Growth?

"The best part is prosecuting pirates will create new jobs building and maintaining prisons. It's all good."

Troll? I'll bite.

Who's paying for these prisons to be built?

How many families would you like to destroy by jailing pirates? (the vast majority of whom make no financial gain.)

Criminal convictions and time spent in prison are notoriously major road blocks to gainful employment after "rehabilitation". So because of some copyright infringement you're willing to create higher unemployment as well as an increased prison cost and population?

£2.2million isnt a huge amount and I would imagine there are plenty of start-ups who have been able to get going through using pirated software. Hopefully they later paid for it.

I myself have pirated software, never for financial gain. I have always made an effort to use F/OSS for my commercial activities.

posted by : Nikolai, 29 March 2011 Complain about this comment
FUD by dinosaurs

The only reasons to pay money for off-the shelf software from 'reputable' Software Houses, is to avoid mal-ware, to get specialist functionality and to get support.

A lot of software is not worth paying for, because of excessive features, excessive greed, or frankly ridiculous restrictions.

I do pay for some software, but only if it is good value for money; most is not!

posted by : infernoz, 29 March 2011 Complain about this comment
I think...

within five years or so most, if not all software purchases will be like the Mac App Store. That will solve this problem.

posted by : The Cunning Stunt, 29 March 2011 Complain about this comment
Tip of the iceberg

I work for a SAM company and most of the engagements we get involved in will result in a settlement payment back to one or more software vendor. Because they don't go to court, they aren't dealt with by the BSA. In the past 6 months, I know of settlement payments exceeding £20m that has been paid by organisations directly to software vendors, in part to avoid litigation. So the £2.2m is only the tip of the iceberg - I suspect the real cost of unlicensed software usage is significantly higher, but not publicised, as companies don't want the negative publicity, and are prepared to settle to avoid being 'named and shamed'.

posted by : Robbie, 29 March 2011 Complain about this comment
Uh?

It's costing them £2.2M a year because that's what they're fining the companies. How much have they saved by not paying over-the-odds prices for software?

If they let businesses use hooky software they would be saving money and software firms would sit up and tke notice that they simply charge too much

posted by : Dai, 29 March 2011 Complain about this comment
Punishment is meant to be a deterrent

Punishment for crimes is meant to be a deterrent. Current U.S. law allows up to $10,000 per copy of pirated copyright works. Other countries need to impose an equivalent fine.

Now the U.S. is passing new legislation that will make piracy a felony with prison mandatory time because the pirates are so stupid they don't know enough to stop. When they get caught they cry they don't have $10,000 per copy to pay the fine. They should have thought of that before they pirated. Now they will be fined and forced to go to prison. That should be a lesson to those who think they are above the law.

The best part is prosecuting pirates will create new jobs building and maintaining prisons. It's all good.

posted by : Bob, 29 March 2011 Complain about this comment
Error or BS ???

Is it 2.2 Million or 2.2 Billion?
If it is the first then I do not know why this article is here in the first place, compare with credit card fraud and this is small change!!!!

posted by : Allan Nielsen, 28 March 2011 Complain about this comment
@ Robert

Robert, who the $%"! are you? BPI by the sounds of it.

Do you seriously think locking people up for a non-violent crime is a good idea?

posted by : m, 28 March 2011 Complain about this comment
There should be mandatory prison time

There should be mandatory prison time for piracy, including pirated software. While this would not eliminated all piracy, it would cause those with a clue to reconsider. The rest belong in prison where they will get a reality check.

posted by : Robert, 28 March 2011 Complain about this comment
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