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Could Your Company Owe Microsoft $150,000 or More for Pirated Software?

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What picture popped into your mind when you read the phrase 'pirated software'? Perhaps an image of some guy selling software out of his trunk or kids copying discs in their bedrooms? Perhaps you think that pirated software only exists in the world of home users, but that is far from the truth. The fact is that the most common type of software piracy occurs in businesses and many times the businesses involved are unaware that the software is being used illegally.

It's not too difficult to find Microsoft products for sale at deeply discounted prices.  While working on this post, I ran a quick search for Office 2007 Professional. Prices ranged from $196 to $499 for this product, which Microsoft lists as $499.95. The fact that I have never heard of the company advertising the $196 price and that it is so far below the retail price tells me that it is highly unlikely that I will receive an authentic copy of Office from them.

Some of this software also includes a large dose of harmful programs as well. Testing has shown that pirated software frequently also installs spyware or Trojans. This additional software can cause vulnerabilities or cause problems that can cost as much as $1000 to remediate.

If you are looking at an offer that seems too good to be true, it likely isn't! Be aware that if the software isn't genuine, you will not be able to download updates. If you think you may have purchased pirated software, Microsoft has a section of their website that explains how to report suspected piracy.

But that's not how most companies become victims of software piracy. Some technology companies are looking for ways to increase their profits. These unscrupulous individuals charge their clients full price for the software and then install pirated copies of the software instead. The unsuspecting clients are completely unaware that they do not have legal copies of the software. When you purchase software or new computers, make sure there is a Certificate of Authenticity for each copy of the software or each machine you have purchased. The Microsoft website has COA samples on their website. You can be held responsible for pirated software installed on your systems, even if you were not aware that the software was illegal, so you want to be sure that you are receiving what you have paid for.

And don't think that if you didn't know, you are off the hook. At a minimum, you will likely have to pay AGAIN to legally license the software.

You can also run into problems if you have installed the same copy of the licensed software on several machines.  If you want to run Office on 5 machines in your office, then you need to purchase 5 copies of Office.Don't think that you are saving anything by engaging in this practice. Microsoft is going to be considerably less understanding if you have done this than if you are a victim of someone else's dishonesty.

Lastly you should be aware that, as a business owner, you can be held responsible for unauthorized software that is installed by your employees on company computers. You can also be held responsible if they are sharing software or other media (like music or movies) through peer to peer file sharing sites like Limewire, Kaaza or BitTorrent. It is important that you are aware of activities that are going on within your company network.

So how do you protect yourself?

  • Be sure that you buy software only from trustworthy sources. Remember that a deal that seems to good to be true probably is.
  • Work with an honest and reputable technology company. Be alert to any indication that the company is willing to break the law to save you money.
  • If you have any reason to suspect that you have been a victim of an unscrupulous technology provider, contact Microsoft (or other software vendor) to get answers to your questions and find out if your software is legal
  • Ask another technology company to perform an audit of your software. It is relatively easy for a trained technician to determine if your software is legal or not.
  • Ask your technology company to install software or hardware that will monitor network traffic and generate periodic reports. These reports will alert you to activities that employees may be taking that could put your company at risk.  You should also be able to block activities that you want to prevent easily.

 

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