Practice Good Software License Ethics to Survive a Software License Audit

How would you fare in a software license audit?

It may be a question worth investigating if you’re not sure of the answer.  Failing to prove your compliance in a software licensing audit can be quite costly.

While you may think the chances of your organization being chosen for a software license audit are slim to none, the risk is still there. After all, something as simple as going over the number of installations allowed in your volume software license can put you out of compliance.

How Software License Audits Come About

Think you’re above being the subject of a software license audit? Think again.

Aside from the rare misfortune of being chosen for a random audit by the Business Software Alliance (BSA) or Microsoft themselves, BSA offers the public the option to report software piracy right on their website.

That leaves the door wide open for [disgruntled] employees & associates to blow the whistle on all of your little piracy practices – whether it was accidental or not – leaving you to deal with the hassles of a software license audit.

The “Joys” of Software License Audits

Should software license auditors come knocking at your door, here are all of the materials they’ll be asking for:

1. Software license proofs of purchase


2. Invoices & sales receipts from software vendors


3. Any certificates of software authenticity


4. Comparisons of installations to purchase software licenses – including any upgrades, free & paid.

Hopefully you will have majority of what’s listed above on-hand and ready to go within the few weeks allowed to get everything in order.

After the auditors have rummaged through all of your records, they’ll report back with what’s missing, how much it’s going to cost you & how to keep history from repeating itself in the future if you’re found to be non-compliant.

Meet the Consequences of Non-Compliance

If you have the misfortune of failing a software license audit, the penalty fees can run quite steep.

Since software licenses are backed by vendor contracts & U.S. copyright law, both civil and criminal penalties may apply.

Businesses inadvertently participating in software piracy due to not properly licensing used software can suffer fines of up to $150,000 per illegally installed copy. That includes software that was purchased but not properly licensed.

Individuals that pirate software – even if it’s by accident – can face up to five years of jail time and $250,000 in fines.

Keep in mind that’s just what you’re paying to the software vendors.

Let’s not forget the hefty legal fees you’re likely to incur or name-dragging in the dirt to the public. It’s not a pretty picture.

Protect Your Company – And Wallet!

What can you do to make sure you’re found compliant in a software license audit?

• Make sure you purchase the appropriate number of software licenses. If you buy volume licensing, make sure that you don’t exceed the number of allowed installations.


• Make sure you understand the terms of purchase software licenses. Is it a concurrent user license or a per-seat license? In other words, if you have 10 computers but only 5 work at a time, can you get away with buying 5 licenses or do you need 10? Be sure that you have a full understanding of what you’re buying and what it takes to be compliant.


• Keep complete, accurate records of your purchased software licenses. Say you do actually purchase the correct number of software licenses and you do not exceed the number of allowed installations – can you prove that? If not, your business can still be fined thousands of dollars for licenses you may have actually paid for, but lack the paperwork to prove it.

“Meh, That’s Too Much Work!”

Should you feel that it's just too much work to research, purchase & keep records that will protect you in the event of a software license audit, then maybe it's time you look into a company that offers software license management services.

Or, you can always push your luck & hope that you never have to face a software license audit. But I suggest that you read a few software license audit horror stories first:

• Temple University Pays $100,000 to Seattle Software Claims


• Microsoft Licensing: A Cautionary Tale

Photo Credit: kiewic

Windows 8 Will Have Built-in Antivirus Software

Microsoft Windows 8 will come packed with its very own built-in antivirus software.

Previous editions of Windows only came with Windows Defender, which detects and removes spyware from the PC.

Microsoft’s antivirus software, Microsoft Security Essentials, has always been up for [free] grabs, but it requires the users to manually download it.

With Windows 8, Microsoft has decided to roll the protection offered by Microsoft Security Essentials into Windows Defender, giving Windows Defender the power to offer spyware, malware, and virus protection, along with parental controls and a personal firewall.

In short, Windows 8 will come stock with all of the functionality offered in paid antivirus software typically provided by Symantec, ESET, Kaspersky, and others.

While it’s good to see that Microsoft is taking measures to protect its end users right out of the box, there’s concern over what kind of an impact it will have on third-party antivirus software companies. Microsoft has previously caused an uproar already and found themselves being accused of engaging in anti-competitive practices when it offered Microsoft Security Essentials in a Windows Update last year.

Still, one can argue that it's good to see Microsoft take the security of their operating system into their own hands. Despite the availability of third-party antivirus software, PCs continue to get infected at an alarming rate, suggesting that many users don’t even bother installing or keeping up-to-date antivirus software running on their PCs. With Windows 8 – and the new Windows Defender – those users will have the protection whether they like it or not.

Aside from the built-in antivirus software, Windows 8 will also have a nifty feature called Secured Boot, which stops any attempt to boot the PC from an infected USB drive and will display a warning message to the user.

Yet another reason to look forward to the new [more secure] version of Windows!

Do you feel Windows 8 will have any impact on third-party antivirus vendors and their products?

Let the Windows 8 App Development & Tinkering Begin!

Microsoft released the Windows 8 Developer Preview just yesterday (September 14^th) and it’s already been downloaded 500,000 times.

The software giant posted the pre-beta version of their highly-anticipated Windows 8 operating system on their website just shortly after unveiling it at the BUILD Conference in Anaheim.

Although the main focus is to allow developers to get a head-start on building apps for the new Windows 8 prior to its release as a retail product, curiosity is bound to draw non-developers to download the new OS just to check it out.

Windows 8 Developer Preview comes in 3 different flavors, two of which are 64-bit versions and all varying in size. Before installing, an ISO file will need to be downloaded and burned to either a DVD or bootable USB drive.

The three versions of the pre-beta Windows 8 builds are all in English:

• Windows Developer Preview English with developer tools, 64-bit (x64)
  Includes the Windows 8 Developer Preview, Windows SDK for Metro style apps, Microsoft Visual Studio 11 Express for Windows Developer Preview, Microsoft Expression Blend 5 Developer Preview, and 28 Metro style apps including the BUILD conference app.
  


• Windows Developer Preview English, 64-bit (x64)
  Includes a disk image file (.iso) to install the Windows Developer Preview and Metro style apps (64-bit PC).
  


• Windows Developer Preview English, 32-bit (x86)
  Includes a disk image file (.iso) to install the Windows Developer Preview and Metro style apps (32-bit PC).
  

If you decide to download the Windows 8 Developer Preview, keep in mind that it is not a final release and is bound to be a bit buggy. It’s highly recommended to use a spare PC to download and install it, although apparently it’s already been installed on a MacBook Air without any major issues.

Be sure to double-check that your PC meets the system requirements before downloading and installing Windows 8 Developer Preview.

To download Windows 8 Developer Preview, visit the Microsoft website.

Happy Windows 8 Exploring!

Have you already checked Windows 8 out? Share your thoughts so far!

*Screenshot of Windows 8 Developer Preview used with permission from Microsoft.