Illegal software costs Inca Creative, Matthews & Goodman, and Fortune Asset Management almost £100,000

The Business Software Alliance (BSA) recently announced settlements with three companies for breaching intellectual property laws by using unlicensed software. The total cost to the three businesses is estimated to be just under £100,000, excluding legal fees and disruption to operations.

These cases act as a timely reminder of the BSA’s 2009 initiative in London, supported by local politicians and business leaders, to raise awareness of software piracy and educate companies about the associated risks. Now more than ever, businesses cannot afford to lose money through legal cases, financial settlements and the unplanned requirement to purchase legitimate software.

Inca Creative Limited, a London-based graphic and website design agency, settled for £5,000 with the BSA after using unlicensed copies of Microsoft and Adobe software (including Office and Photoshop) on approximately 14 computers. The company also had to make compliance purchases of around £10,000.

Property advisors, Matthews & Goodman LLP, paid the BSA £17,500 as a result of under-licensing Microsoft software on approximately 75 computers and three servers. Furthermore, Matthews & Goodman purchased a large amount of software in order to rectify the situation, meaning the total cost to the business was almost £60,000, excluding legal fees.

In addition, following the discovery of unlicensed Microsoft software on approximately 30 computers, alternative asset management firm, Fortune Asset Management Ltd, agreed an out-of-court settlement with the BSA worth £8,500 and has paid out approximately £10,000 on purchasing the correct licenses to ensure compliance.

“These cases highlight the major financial risks businesses in London are running by using unlicensed software. Our campaign is designed to help organisations avoid penalties but London, as one of the world’s biggest centres of commerce, needs to set an example and companies flouting the law will be exposed,” commented Alyna Cope, spokesperson for BSA’s UK Country Committee.

Colin Stanbridge, Chief Executive of the London Chambers of Commerce & Industry, said: “London has a vibrant business community and a strong pedigree in the IT industry. Stamping out software piracy in the city means business can save money and be more productive, while also reducing the risk of computer viruses and security problems. It also means that software companies can be properly rewarded for their innovation and creativity.

“I would urge all businesses which use software, however big or small, to take advantage of the BSA’s offer of support. Completing and returning a self-audit form and ensuring their software is legal, will bring benefits not only to their own companies, but to the London economy more generally too.”

According to the global research firm IDC, driving down the software piracy rate by 10 percentage points could generate 13,000 new jobs, £1.08 billion in tax revenues and contribute £4.46 billion to the UK’s economy.

Further Action

What should companies do?

Contact EJC IT for a free review of your current systems and software and advice on how to ensure compliance and maximise the benefits to your business of proper licensing.  Click here for your free review. 

Also visit www.bsa.org/london for information on the software health check. You can access self audit forms, find out more about the risks of software piracy, and download a variety of supporting tools.

About BSA The Business Software Alliance (www.bsa.org) is the foremost organisation dedicated to promoting a safe and legal digital world. BSA is the voice of the world's commercial software industry and its hardware partners before governments and in the international marketplace. Its members represent one of the fastest growing industries in the world. BSA programmes foster technology innovation through education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce. BSA members include: Adobe, Altium, Apple, Autodesk, Bentley Systems, Corel, Dassault Systèmes SolidWorks Corporation, Embarcadero, Famatech, FrontRange Solutions, Mamut, Materialise Software, Microsoft, Mindjet, Monotype Imaging, NedGraphics, O&O Software, Ringler-Informatik, Scalable Software, Siemens, Staff & Line, Symantec, Tekla and The MathWorks.