Know Your Responsibilities and Risks

All software users, whether individuals, companies, educational establishments or other organisations, have the same responsibility when it comes to using software and that responsibility is - to use the software in accordance with terms and conditions of the licence.

Not knowing or understanding the terms and conditions is not an excuse if you are found to be in breach of them. Everyone should ensure that they understand what they can and can’t do in relation to using the software. If there is any doubt, contact the publisher for clarification and/or seek legal advice from members of the Federation Legal Advisory Group (FLAG).

Within companies the company officers are responsible for ensuring that their organisation complies with the law and this applies to the use of software as much as any other area of operation. Even if an officer of a company is unaware that software is being used outside the terms of the licence they may not be absolved from legal proceedings. Click here to see an explanation of relevant sections of the Copyright Designs and Patents Act 1988.

Legal action is the first risk that people think of in relation to the misuse of software, but that is not the only one. For individuals, using software that is not legally purchased can leave them open to virus’s, incomplete programs, no technical support and so on, but organisations have an even greater level of exposure. Not only to their reputation if legal action is taken because infringing software is found on their system but it can also be a burden on the bottom line. Not having control of your software and IT infrastructure can lead to:

• Overspending when upgrading as the exact number of licenses required is not known
• Overspending on maintenance if the exact number of installations/users is not known
• Unnecessary software installations if software usage metering is not deployed to ensure that only those that use a program have it installed and upgraded
• Inability to reallocate licences when a computer or workstation is decommissioned, or an employee no longer needs that software
• Duplication of software purchases if there is no central control

In general, organisations that employ effective Software Asset Management realise savings between 5% and 35% on their IT Budget (Gartner Group)

For information on how to become Compliant click here