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Florida-Based Industrial Materials Provider Settles With BSA for Unlicensed Software Use, Agrees to Pay $73,000

Posted on: Monday, 20 July 2009, 09:15 CDT

WASHINGTON, July 20 /PRNewswire-USNewswire/ -- The Business Software Alliance (BSA), which represents the world's commercial software industry, announced today that Mansfield Industrial of Pensacola, Florida has paid $73,000 to settle claims that it had unlicensed copies of Microsoft software installed on its computers. As part of the settlement agreement, the company agreed to delete all unlicensed copies of software on its computers, purchase any licenses necessary to become compliant, and commit to implementing stronger software asset management (SAM) practices. BSA and its members were represented by the law firm of Higer, Lichter and Givner of Aventura, FL.

Mansfield Industrial is a provider of industrial coatings, insulation, fireproofing, industrial cleaning, and roofing services with more than 35 years of experience.

"Mansfield Industrial had just discovered the presence of the unlicensed software when it was contacted by the BSA and was in the process of attempting to correct the situation," said a spokesperson from the company. "Mansfield Industrial fully cooperated with BSA in identifying and removing the unlicensed software and bringing Mansfield Industrial into full compliance."

BSA was alerted to the unlicensed software use by a confidential report made on BSA's website www.nopiracy.com. Each year, BSA receives more than 2,500 reports of software piracy to its Web site and hotline, 1-888-NO PIRACY. The majority of BSA's leads come from current or former employees who had information related to the unlicensed software activity.

Through BSA's "Know it, Report it, Reward it" program, individuals who provide qualified reports of software piracy are eligible to receive up to $1 million in cash rewards. In 2008, the BSA paid a total of $136,100 in rewards to 42 individuals for tips about software piracy. Surprisingly, despite the rewards program, many opt not to take the reward, citing their motivation to simply "do the right thing."

According to the Sixth Annual BSA-IDC Global Software Piracy Study, the retail value of unlicensed software -- representing revenue losses to software companies -- was estimated at $9.1 billion in the United States and $53 billion worldwide.

But software piracy affects more than just the software industry. Piracy also saps local governments of needed tax revenues and spreads information security risks. Reducing piracy brings economic benefits to the local IT industry and local communities. For every $1 of PC software licensed, there is another $3 to $4 of revenues for local service and distribution firms, as well as tax revenues to support local services.

"If one message is loud and clear, it's that doing the right thing by using legal software is the key to reducing piracy, strengthening the local IT industry, and creating the jobs that are needed during these challenging economic times," said Jenny Blank, Senior Director of Legal Affairs for BSA.

Financial Risks

Businesses found to be using unlicensed software could pay thousands of dollars in damages to the BSA. A company found using unlicensed software and violating copyright laws can pay damages of up to $150,000 for each software title copied. If convicted, violators can be fined up to $250,000 per title or given a jail term of up to five years, or both.

When BSA receives a tip about a company using pirated software, it typically contacts the company and asks it to conduct an audit of its software assets. The next stage is for both parties to work toward a resolution that involves immediate legalization of software. If an agreement cannot be reached, BSA may file a lawsuit, as it did most recently against Taney Engineering of Nevada.

Security Risks

By utilizing pirated software, users' networks and computers are vulnerable to serious IT security threats. Company computers could be infected with trojans, viruses, malware, and other threats. The lack of security could also compromise sensitive data and the personal information of employees and customers. As companies and government agencies have found, having confidential information exposed to outsiders is costly and can also put an organization's reputation at risk.

Tools & Resources to Ensure Compliance

BSA works with businesses to help ensure that their company isn't at risk for financial, technical, and legal risks associated with illegal software. In addition to resources provided on www.bsa.org, BSA partnered with the U.S. Small Business Administration to educate up to 100,000 small businesses on software licenses, copyright laws, tips on how to purchase safe and legal software online, and how to develop a SAM program.

Businesses trying to determine whether their organizations are using unlicensed software can download the free software audit tools at www.bsaaudit.com.

Please visit our Facebook page under keyword Business Software Alliance (BSA) Anti-Piracy.

About BSA

The Business Software Alliance (www.bsa.org) is the foremost organization 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 programs foster technology innovation through education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce. BSA members include Adobe, Apple, Autodesk, Bentley Systems, Corel, CyberLink, Dassault Systemes SolidWorks Corporation, Embarcadero, McAfee, Microsoft, Minitab, Quark, Quest Software, Rosetta Stone, Siemens, Sybase, Symantec, and The MathWorks.

SOURCE Business Software Alliance

Source: PR Newswire

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