Transcript KPMG agents on a mission to do away with piracy By Lesley

LicenceWise
Software Licence Risk Management
If you are wondering whether your company is using
licenced software, here is some food for thought :
 There are regulatory organisations such as the BSA
(Business Software Alliance) , who are visiting over 2000
companies in South Africa to enforce piracy claims for the use
of pirated software,
 You may have lost proof of licencing or purchased invalid
licences over the past few years where you could be exposed to
litigation,
 If you have recently received correspondence from the BSA
you are on their hit list,
 Some relevant industry information…….
KPMG agents on a mission to do away
with piracy
By Lesley Stones, Business Day, 5 Nov 2002
BSA estimates that 38% of business software
used in SA is pirated
Information Technology Editor
COMPANIES using pirated software may soon
hear a knock on the door as auditors from
KPMG drop in to assess their legal status.
KPMG's forensic department will visit 2000
companies, many of which are already
suspected of using forged computer
programs or running them without a
licence. The campaign is being led by the
Business Software Alliance (BSA), an
antipiracy body with members including
Microsoft, Adobe, the Softline Group and
Symantec. The BSA launched this latest
crackdown in September by sending
letters to more than 28000 companies
urging them to legalise their software.
The follow-up visits are now under way, said
Andrew Lindström, chairman of the BSA in
SA.
He is warning companies not to be complacent
as the hefty fines, backdated licence fees
and bad publicity imposed on software
pirates could put them out of business.
"We have 25 KPMG antipiracy agents around
the country to cover all the major centres.
They are calling ahead to make
appointments with the chief information
officer or the person who owns the
company."
Many of the 2000 target companies have
already been fingered for flouting the law
in tipoffs made to the BSA. A company
receiving a visit may not necessarily be
suspected of running illegal software, but
it may mean exactly that, warned
Lindström.
"It's
a
combination
of
companies we particularly want to visit
and others chosen at random."
The BSA will litigate against any firm using
software
without
a
licence,
said
Lindström, the country manager of Adobe
Systems. "For too long organisations have
hidden behind the veil of ignorance.
Organisations that are unlicensed should
notify the BSA immediately to avoid any
action for non-compliance."
The auditors will visit companies from various
industries over the next three months.
A plea for directors to welcome the visits has
been issued by Tony Wright, a partner in
KPMG Forensic. The agents had been
thoroughly trained to carry out the task
and would emphasise the need for all
software to be licensed and help each
company to comply, he said. "Our agents
will be presenting the downfalls of using
unlicensed software and highlighting the
common types of software piracy."
The agents will also gauge corporate opinions
about the BSA.
KPMG agents on a mission to do away
with piracy
That could prove enlightening, since the
BSA and Microsoft in particular have
been accused of heavy-handed and
intrusive tactics in their previous
antipiracy efforts. One recent
campaign has been a "name and
shame" scheme run by Microsoft,
which has taken out newspaper
advertisements naming those
companies which have paid a
settlement after being caught
running pirated software.
Research shows that 98% of SA's
corporate decision makers are aware
that piracy is illegal, but many
believe they will not be caught.
Moreover, it is seen as a victimless
crime which directors may ignore or
actively condone in an effort to save
the considerable fees which software
firms charge to use their products.
However, the BSA's legal representative,
Spoor & Fisher, is investigating more
than 400 SA companies for piracy.
They include major corporations which risk
being publicly shamed when they reach a
settlement or are taken to court.
The BSA estimates that at least 38% of
business software used in SA is pirated,
with a retail value of R500m. That means
the industry loses R1,4m a day and
government loses R150m a year in taxes.
The most common forms of corporate piracy
are when companies download a program
to more users than it has bought licences
for, when staff download software from
home, or when the original disc containing
the software is a forgery.
Others are caught out by buying computers
pre-loaded with illegal software. About
700000 personal computers will be sold in
SA this year and about 120000 will contain
illegal software.
Nov 05 2002 12:00:00:000AM Lesley Stones
Business Day 1st Edition
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