Software licensing

12 October 2004 by
Software licensing

The problem You've got your hands full running a busy restaurant or hotel. You simply want your IT system to provide peace of mind and value for money. As your business develops, you want to keep it running efficiently and remain legally compliant. To help do this, how can you ensure you're using genuine software and are not over-licensed or under-licensed?

The Law
Installing unlicensed software or running counterfeit software may be an offence under Section 107(1)(c) of the Copyright, Designs and Patents Act 1988 if the person responsible knows, or has a reason to believe, that the software is counterfeit.

Furthermore, counterfeiting software is an offence under Section 92 of the Trade Marks Act 1994.

Expert advice Using genuine licensed software provides businesses with reliability, security and support, giving them the peace of mind that their system is protected. Like a book or a music CD, software has intellectual property rights associated with it. Therefore, when you buy software, you don't buy the entire computer program but the right to use it. Each PC with software installed must have its own licence.

Bosses may have no idea that they are breaking the law by not having the correct licence for the software they are using. If a business buys software licensed for one PC, but installs it on every computer in their company, that is illegal. To do this legally would require a licence for each installation. Many software suppliers sell a "volume licence" to cover multiple installations.

Businesses also need to beware of counterfeit software. Counterfeiters come up with increasingly sophisticated ways to deceive people, but there are still a number of things to look out for. If the price seems too good to be true, it is probably counterfeit. Similarly, once installed, if software is prone to freezing or crashing, it may not be genuine.

Using genuine licensed software gives you a reliable product that has been developed and tested. It lets the user work faster and better. Genuine software offers security updates, product updates, warranty, improved productivity, technical support and peace of mind.

Check list - Consider contacting software licensing compliance body the Federation Against Software Theft (FAST), or rival organisation the Business Software Alliance (BSA), for advice.

  • Consider gaining accreditation from either the BSA or FAST, the UK's two main software licensing bodies.

  • If you are using Microsoft products, check that they are properly licensed with our free, easy-to-use tool, the Microsoft Software Inventory Analyser, which works whether you have a single computer or are part of a network. See www.microsoft.com/ resources/sam/msia.mspx.

  • Look at our "how to tell" website (www.howtotell.com), which illustrates all the features you will find on genuine Microsoft products.

  • If you have software that you think is counterfeit, or may not be licensed, you can send it to us for testing. The service is free - all you pay is postage. See www.microsoft.com/uk/piracy/tools/product-id

  • Have a software audit to check whether all your licences are up to date.

    Beware! A person found guilty of installing unlicensed software, or running counterfeit software, may be liable to imprisonment for as long as six months or a fine of as much as £5,000, or both. And a person found guilty of distributing, importing or making counterfeit software or unlicensed installations may be liable to imprisonment for up to 10 years or an unlimited fine, or both.

Contacts
Microsoft (Product Identification Service)
0800 013 2222

Federation Against Software Theft
01628 622121
fast@fast.org
www.fast.org.uk

Business Software Alliance 020 7245 0304
infouk@bsa.org
www.bsa.org

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