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Payless ShoeSource and Burlington Coat Factory paid hefty fines
Computerworld (December 12, 2006) - Payless ShoeSource Inc. and Burlington Coat Factory Warehouse Corp. have paid a combined total of nearly $425,000 to the Business Software Alliance for unlicensed software use, according to a statement released today by the BSA, a watchdog group representing the nation's leading software manufacturers.
The BSA today announced that Payless ShoeSource, a national discount shoe store retail chain, paid BSA $124,057 to settle claims that it had unlicensed copies of Adobe, Autodesk, Borland, Internet Security Systems, McAfee and Symantec software programs installed on its computers.
In addition, according to the BSA, national department store retail chain Burlington Coat Factory paid the BSA $300,000 to settle claims that it had unlicensed copies of Microsoft and McAfee software programs installed on its computers.
Officials could be reached for comment at either company.
"Burlington Coat Factory understands the importance of software asset management," the retailer's CIO, Brad Friedman, said in a statement. "We have created a new software management policy and continue to refine its implementation to emphasize the importance of understanding each software company's licensing requirements and using only fully licensed software. We also note that when these issues arose, effective corrective action was taken as soon as they came to management's attention.
"We are confident that all our software has been fully and appropriately licensed since then," Friedman said.
Both companies also agreed to delete any unlicensed copies of programs in use, purchase replacement software and strengthen their software management practices.
"BSA recommends that all companies and organizations have strong software management policies in place -- including periodic internal audits, guidelines for supervisors and clear procedures for employees," Jenny Blank, director of enforcement for the BSA, said in the statement. "We hope this settlement will set an example to other businesses that software should be managed just as carefully as any other more tangible asset."
Most investigations begin with a call to the BSA's hot line or with a report to BSA's online reporting form by current or former "disgruntled" employees who are unhappy with their employers and see no reason to keep the secret any longer, Blank said in an interview.
The BSA received reports on Payless and Burlington Coat Factory through the online reporting form, she said. Both companies then cooperated with the BSA and conducted self audits.
"They provided those results to us, and we were able to use that data to reach the settlement agreements," Blank said.
The BSA said it is now offering rewards of up to $200,000 for qualifying reports received via its hot line or online reporting form. Confidential reports can be made by visiting www.nopiracy.com or by calling (888) NO PIRACY. Reward payments are subject to eligibility requirements, the details of which are available on the Web site, the BSA said.
Businesses trying to determine whether their organizations are using unlicensed software can download the free software audit tools at www.bsaaudit.com.
* Linda Rosencrance
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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, Avid, Bentley Systems, Borland, CNC Software/Mastercam, Internet Security Systems, McAfee, Microsoft, PTC, SolidWorks, Sybase, Symantec, The MathWorks, and UGS.
Contact Information
Anne Petraeus
Dittus Communications
202-530-5120 or 202-715-1531
anne.petraeus@dittus.com
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