Record Settlement

totals $US 3,467,000!

Or is the BSA $US 1M Reward scheme starting to make an impact

and at the same time illustrate management stupidity?

Do you have this kind of money to waste?

"The BSA has successfully settled with hundreds of companies resulting in approximately $US 22 million of damages paid since that time."

This translates into around

$US60 M has been wasted by organizations who could have saved at least 60% to 80% of that amount by adopting good software  management practises!"

" ...............the success of the program has led BSA to extend the $1 million reward. “Blow the Whistle,” a national advertising campaign that encourages employees to report software piracy, will also continue through the remainder of the year.

The BSA Rewards program was launched in the U.S. in the fall of 2005. The program encourages individuals with detailed information about software piracy to come forward and confidentially submit a report. Since the 2005 launch of the Rewards program, BSA has successfully settled with hundreds of companies resulting in approximately $22 million of damages paid since that time." News Source

Check your systems today with

Audit Baseline

Software & PC Audit is often ignored as a key issue for many sites. Software Audits, PC Audits and Network Inventory are often never completed and many sites are wasting time and money by using ineffective tools and techniques.

PC Profile offers the most comprehensive range of advice and services on software auditing, pc auditing and network inventory to enable you to minimize your risk of unnecessarily paying legal fees and fines to the BSA, BSAA, CAAST, FAST, AAA, SAFACT, SIIA, MPAA and RIAA for software, music and movie piracy

Rewards On Offer

We don't entirely agree with the BSA reward system as we think it generates false results BUT you need to be aware of what's happening!

BSA Reward System

By now most IT Directors will have seen the Press release at http://www.bsa.org/country/News and Events/News Archives/en-09182007-globalsettlement.aspx which recently announced that the BSA recently agreed to a record global settlement of over $US 3,467,000 with an international media firm found to have significant shortfalls in software licenses.

Other press releases show that "management were shocked at the scale of the situation......"http://www.americanmachinist.com/Classes/Article/ArticleDraw.aspx?CID=72033&HBC=News&OAS=&NIL=False

However, the real shock will soon cascade through to the stakeholders and investors when the realization comes that the total cost of the exercise (loss of profit and cash to the business) is likely to be of the order of at least double, or more, the fine amount.

"From previous piracy actions we understand that the industry rule of thumb estimates for anti-piracy actions such as this, are usually of the order of 3 to 4 times the amount published as a fine", said Rob Harmer at PCProfile.

"This puts the real cost of the lack of management action and follow through at somewhere between $US 7m and $US 12m, which is not small change. For many it would be a career limiting move if caught up in this sort of saga!"

The 3 to 4 times cost multiplier effect, arises due to;

• the costs of legal defense,
• additional software to be purchased,
• punishment for the guilty (sometimes the scapegoat is fired),
• consultants and auditors fees,
• additional resources to help with proof of purchase,
• audit software tools,
• additional assets to replace those seized/frozen,
• business disruption,
• negative publicity arising, plus
• travel in this case, as the company is international.

How many IT Directors and Managers can afford to have assets frozen for "gross management stupidity by relying on one individual" and as a result lose between $US7m to $US12m?

Why managment stupidity? Because the firm "relied on a single individual to keep us compliant and manage our software assets across multiple-locations" said the International media firm.

PCProfile doesn't entirely agree with the BSA reward system (currently it is up to $US1m) as it encourages dubious activity within businesses. Software Asset Management needs to be managed, governed and controlled through;

• standard business practise,
• software asset management processes,
• management direction,
• approved software budgets at all levels,
• software compliance policy and procedures,
• software compliance audit tools,
• sound work practises, and
• accountability at all levels.

This was clearly not the case in this instance and it cost one organization very dearly!

"Quite frankly we don't care how much the software industry is losing due to software piracy, as that's not the real issue". said Rob Harmer, Managing Director, PCProfile in Australia.

"The real issue for IT Directors and Managers across business and government sector accounts, is the absolute waste of money and effort being expended by inefficient and inappropriate work practises at present when the real business goals and objectives are the true drivers for business success", said Harmer.

If you want to learn more about how the BSA can freeze/seize assets see http://www.pcprofile.com/anton.htm which describes the use of an Anton Pillar order and how a court appointed officer can raid your premises, seize assets (remove them from your premises), and make life very difficult for your business.

C level Executives can learn more about these issues and how you can counter them http://www.pcprofile.com/We_Dont_Care_How_Much_The_Software_Industry_Is_Losing.pdf

Site and Contents Copyright 2007 © Rob Harmer Consulting Services Pty Ltd All Rights Reserved Worldwide email pcprofile@internode.on.net  This page last updated 2nd October 2007