You read that right! Businesses throughout Portland and other areas need to watch out about their licensing. The downturn is hurting everyone and let me tell you, everyone is trying to find out how to keep that money coming in.

An article hit the internet the other day out of Europe, but it’s a very good news item for anyone that will read it. It basically states that everyone needs to be careful about their licenses because a lot of software companies are starting to turn into the “dirty cops that sit at the bottom of the hill, behind a bush, simply to generate revenue.” Most of you don’t know, but during the installation process of almost any piece of software you install, you open yourself up (ie: agree) to be audited. Even Microsoft audits companies on occasion, and they are so serious about it, they PUBLISH who they audit to partners to keep us all in line. On top of that, you don’t even need to agree to be audited as Copyright Law plays into software piracy.

Now, is a Software Audit really that serious? YES!!!

There is a reason Software Audits are called “Software Raids”. Businesses generally receive 1 to 2 weeks notice, at most, of an upcoming software audit. Imagine having to look at every single program on every computer and determine if you’re licensed or not. Then, after you find out how many programs you’re illegally using, you find out just how hot that water can get(“illegal” is a general use term here as you’re required to show purchase receipts. Software keys, boxes, etc are “suspect” because YOU may not have bought them, legally, etc…). Auditors don’t come in and just look through your computer, they use automated tools that search your computer for software, but they also tend to focus on just the programs they know about. Tell them a little too much info and your investigation will get larger. Also, the fact that you’re being audited means something to other companies, so expect to have other companies knock on your door as well.

Think it won’t happen to you? Think again. There are several companies that perform software audits for various businesses and they pay rewards to people that report you and your business. That means that if you’ve ever fired any employees, or have any that just really don’t like working for you, the prospect of making money can be too great. Rewards are paid out when there is a a successful audit and the amount depends on how much you’re fined.

Software licenses are governed by contracts with vendors, and by U.S. Copyright law. You as an individual and your company may both be at risk for civil and criminal penalties for software license violations. Fines for corporations can reach $150,000 for each illegally installed copy of software. As an individual, you could be criminally prosecuted, fined up to $250,000 and even face jail time — up to five years.

Here’s another article you should read concerning software audits/raids. It explains how they happen and what you should do. I’ve worked with a guy that was at two different companies that got audited and he even stated that the people that show up are lawyers that act as sales guys. Because of how audits work, Protocol16 will actually recommend that you speak with a lawyer about your situation before contacting any company about a software audit. There is an Client/Attorney confidentiality law out there that may help you during your audit. Bringing in a company, such as us, will not legally help you and we may find more things wrong as well.

This entire situation is one of many reasons that Protocol16 always recommends that business customers setup Standard User Accounts on all employee computers. It’s hard to tell what each employee may have installed without you knowing. You could have illegal software or even MP3′s on your computers and network – bad news.

Now that I may have scared some of you, I won’t leave you hanging. There are ways to protect yourself and your business. Mostly, just taking an interest in what you and your employees install can make the biggest dent. I’ve mentioned that you shouldn’t install products such as the free version of antivirus packages, such as AVG, before and this is where those decisions count. If you have more computers and users than you know what to do with, there are self auditing tools out there that can help you as well. One great program is Microsoft SAM. This program will allow you to audit up to 150 computers, which classifies as a smaller”large” business. This product will help most businesses to get a handle on their issues. Don’t put it off until it’s too late!

As always, let us know if you have any questions.
Justin