Scott and Scott is regularly called upon by the media to comment on the activities of the Business Software Alliance and to advise clients regarding software compliance policies and practices.

Audit frights - What to do when a software auditor knocks
itnews
Audit rights are two words that most software customers would be glad never to hear. Major software vendors say they aren't invoked often - only when a customer is uncooperative or thought to be willfully non-compliant with their license terms. But that doesn't mean that vendors aren't taking a very keen interest in how their licenses are used. In the past three months, the Department of Defence and three NSW state government agencies have found themselves in the Federal Court over license disputes. Scott & Scott LLP associate attorney Andrew Martin notes the renewed interest by software publishers in "auditing their customer bases". "It's a pretty simple equation where the publishers are losing revenues on new software purchases," Martin says.

BSA Piracy Impact Study Inflates Effect on Economic Growth
Scott & Scott, LLP Responds to 2010 BSA-IDC Global Piracy Impact Study
CNBC
SOUTHLAKE, Texas, March 22, 2011 /PRNewswire via COMTEX/ -- The Business Software Alliance (BSA) revenue numbers reported in the 2010 BSA-IDC "Piracy Impact Study: The Economic Benefits of Reducing Software Piracy" appear to be inflated. Software audit defense firm Scott & Scott, LLP could not find support in either the current or 2009 Study by IDC for the conclusions the BSA reached regarding software piracy's economic impact.

"The economic impact of reducing software piracy is grossly exaggerated both in revenue and employment numbers," said Robert J. Scott, Managing Partner of Scott & Scott, LLP.

The latest study projects that a 10% reduction in software piracy over a four-year period in the 42 countries studied would produce $142 billion in new economic activity, generate $32 billion in new tax revenues, and add 500,000 new high-tech jobs. Scott notes that the tax revenue is $8 billion higher, the GDP contribution is $1 billion higher, and the number of jobs 100,000 fewer than previously cited by the BSA in its study released in January 2008.

The BSA-IDC's dollar and employment figures are based on an assumption that 100% of pirated software represents a direct loss of revenue to the software firms, and concludes that lost software revenues attributable to software piracy would be recouped dollar for dollar if piracy rates were lowered. "There is no evidence that 100% of pirated software would be replaced by a purchase of the legitimate version at full retail," Scott said.

In this same report, the BSA claims more than 4 out of 10 installed software programs are illegal, and that most illegitimate software installations occurred in otherwise legal businesses that may for example buy 10 licenses but then install the software on a 100 or 1000 PCs.

Mr. Scott says, "In our experience of handling more than 200 BSA software audits, we have not found clients intentionally purchasing 10% to 100% fewer licenses than needed. Rather, we believe that the complexity of software license agreements, lack of resources to establish costly compliance initiatives, and the BSA's $1 Million Reward Program may be strong contributors to most unintentional non-compliance." Scott could not find documented proof of the study's conclusion that IT service and distribution firms on average lose $3.80 of revenue for every $1 of PC software sold. He asks, "What costs are being measured and how are IT services being valued?" Software license compliance can cost large enterprises millions of dollars; smaller enterprises often face even greater costs as a percentage of revenue.

Complying with the complex and ever-changing license agreements that publishers mandate requires enormous human and financial resources.

Further, business resources dedicated to compliance management are being diverted from potential business development, investments, R&D and innovation opportunities across all industries.

Scott & Scott believes that the Business Software Alliance should do more to lessen the compliance burden on American businesses, as they seek to adhere to complex license agreements and the challenging asset reconciliation process. In doing so, companies will have the resources necessary to invest in revenue-generating initiatives, as well as foster innovation that drives their businesses - and the economy.

Microsoft vs. Software Piracy - Inside the War Room
Ashlee Vance
The arrival of organized criminal syndicates to the software piracy scene has escalated worries at companies like Microsoft, Symantec and Adobe. Groups in China, South America and Eastern Europe appear to have supply chains and sales networks rivaling those of legitimate businesses, says David Finn, Microsoft’s anti-piracy chief. Sometimes they sell exact copies of products, but often peddle tainted software that opens the door to other electronic crime.

Business Software Alliance - Online Automotive Resource Pays $400,000 To Settle Claims Of Unlicensed Software Use
Taylor Bennett
The Business Software Alliance (BSA), the voice of the world's commercial software industry, today announced a settlement with AutoTrader.com, the leading automotive marketplace and consumer information website headquartered in Atlanta, GA. AutoTrader.com paid $400,000 to BSA to settle claims that it had unlicensed copies of Adobe, Autodesk, Corel and Quest software installed on its computers. As part of the settlement agreement, the company agreed to delete all unlicensed copies of software from its computers, acquire any licenses necessary to become compliant and commit to implementing stronger software asset management (SAM) practices. BSA was alerted to the unlicensed software use by a confidential report made on its website www.nopiracy.org.

"AutoTrader.com has grown from 10 employees at our founding 12 years ago to more than 2,000 today," said Bob Hadley of AutoTrader.com. "During that time we have focused on managing the explosive growth of the company and serving the tens of thousands of customers - auto dealers, manufacturers and private sellers - who advertise vehicles for sale on AutoTrader.com and the millions of shoppers searching for cars on our site. We believe our employees have the utmost integrity when it comes to these matters and this audit brought to light the importance of having procedures in place to make sure all software purchases and licenses can be accounted for in accordance with Business Software Alliance policies."

"It is important businesses understand the risks associated with using unauthorized software on any computer," said Jodie Kelley, BSA's vice president of anti-piracy and general counsel. "Not only do organizations face possible legal trouble for employing pirated software, there are also tremendous security and economic consequences involved."

Software audits: not a case of if, but when
Kathleen Melymuka
"There are two types of companies: those that have been audited [for software violations] and those that will be." So says Robert J Scott, managing partner of legal and technology services firm Scott & Scott. Recent settlement fines for software licence violations have topped US$500,000 (NZ$800,000), says Scott, and that's only a small part of the true cost to an audited company. Scott, who has extensive experience defending companies in software audits, spoke with Computerworld's Kathleen Melymuka about your rights and responsibilities.

The BSA targets DFW area
PR Leap
Scott & Scott, LLP, Dallas based-law and technology services firm, report that the Business Software Alliance, has targeted the Dallas area as its number two anti-piracy market, based on statistics from TNS Media’s AdScope. The BSA, a global software industry group funded by big name companies, including Adobe, Microsoft, Autodesk and Symantec, has placed 124 radio ads in a five week period in their national "whistleblower" campaign on Dallas radio stations.

BSA Targets Law Firm Software Pirates
Tom Collins
The Business Software Alliance (BSA) is a trade group whose members include the likes of Microsoft, Adobe and Computer Associates. The BSA's job is to protect the property and financial interest of members by identifying and recovering damages from organizations using the unlicensed property (software) of their members. And they are aggressively encouraging disgruntled employees to blow the whistle. Virtually any business, including law firms, is at risk. Even with good intentions, you are likely to have software installed and in use on your computer equipment for which you do not have a license or do not have the BSA's level of required proof of purchase.

Oracle-SAP suit exposes contract weaknesses
Kathleen Lau
The ongoing legal dispute in which Oracle accuses SAP of "corporate theft on a grand scale" brings to the fore the delicate nature of contractual agreements between software companies.

Network World
Business Software Alliance: Outright liars or just truth challenged?
Earlier this month, I began talking about the new software Mafia, aka the Business Software Alliance (check out "The software protection racket, Part 1 and Part 2"). Two goals this week: get the BSA to tell me what prompts a software audit, and get Microsoft - one of the primary forces behind the BSA - to define piracy.

Network World
The software protection racket, Part 2
In my last column I mentioned some of the things you and I would consider proof that we acquired our software legally, such as having the original disks, packing material, and paper or folder with the Registration Key. Answer from the BSA: none of that proves you own your software.

InsideCounsel.com
Stealing Software
It began covertly. Someone with inside knowledge of Meritage Corp. quietly contacted the Business Software Alliance (BSA), a trade group that represents some of the country’s biggest software companies, and reported that the homebuilder was using unlicensed software.

Network World
The software protection racket, Part 1
Old Mafia movies portrayed the protection racket as almost honorable, and certainly not complicated. If you pay the crime boss some money each week, he made sure other criminals didn't bother you. The new Software Mafia, represented by the Business Software Alliance, isn't honorable or simple.

Computerworld
Under threat of litigation: How to survive a software audit
"There are two types of companies: those that have been audited [for software violations] and those that will be." So says Robert J. Scott, the managing partner of legal and technology services firm Scott & Scott LLP.

IT World.com
Business Software Alliance Update No. 1
We discussed licensing lamentations last month, and made a brief mention of the BSA (Business Software Alliance). I'm digging a little deeper into their increasingly hardnose tactics...

Computerworld
Q&A: BSA’s informant fee hike is a money-maker, says attorney
The Business Software Alliance last week increased its cash reward for qualified software piracy leads from $50,000 to up to $200,000. When the BSA announced the change, its director of enforcement, Jenny Blank, said in a statement that the increase reflected BSA’s plans to escalate its fight against software piracy.

InformationWeek
Tame Your SLAs
Understanding, let alone properly managing, software licensing agreements (SLAs) can be overwhelming, but don't just shrug it off. Enforcement agencies are taking an ever-more aggressive stance on auditing companies' software use and imposing heavy fines on violators. We take a fresh look at the problem and solutions.

Webpronews.com
Microsoft Sues EBay Software Pirates
Eight people in eight different states are being sued by Microsoft for allegedly selling pirated software on eBay. The software giant says it is hoping to send a strong message those who illegally sell counterfeit products.

CIO.com
Do Vendors Use Software Audits to Scare Up New Contracts?
There are several items to be concerned about when facing an audit from a software publisher. Software Licenses are permissive documents - they explain what you are permitted to do.

Forbes.com
Scott & Scott, LLP Responds to Business Software Alliance Settlement
Scott & Scott, LLP is issuing the following statement from Robert J. Scott, Managing Partner, in response to the Business Software Alliance settlement with Encompass Teleservices, Inc. for $100,000 and LiveBridge Corporation for $75,000.

CFO Magazine
Can I See Your Receipt?
The Business Software Alliance will pay up to $50,000 to anyone who blows the whistle on a company that is found to have unauthorized software somewhere within the organization.

Redmond Mag.com
Software Raids: Surviving an Audit
Software audits are a hassle, an embarrassment, and can result in hefty fines and worse. Here’s how to prepare for, and win, an audit.

ASAP Software
Sofware Asset Management White Paper (.pdf, 100kb)
In the Dark Over Software Management? You’re Not Alone

PC Magazine
Software Racketeering
In the San Francisco Bay Area on every radio station from progressive rock to sports talk radio we've been inundated by commercials from the Business Software Alliance (BSA) making threats about software copying.

IDC
IDC Says Piracy Loss Figure is Misleading
It is all too common for a particular group to brandish outlandish statistics in support their point of view. Many egregious examples of this behavior have been displayed by movie, music, and software groups when trying to put a price tag on piracy losses.

SiliconValley.com
BSA Report BS
If John Gantz, the IDC researcher who led The Business Software Alliance's latest Global Piracy Study, was hoping to have the last word on the controversy that's arisen around his research (see "BSA report BS, redux"), he hoped in vain.

Haaretz.com
A Flimsy Connection to Reality
Software piracy is a curse, not only because morally software should not be stolen, but also because of the damage it does to the global software industry.

Computerworld
BSA Pursuing 700 Software-Piracy Probes
The Business Software Alliance, the chief watchdog for U.S. software publishers, rarely raids enterprise customers with federal marshals and court orders, according to Robert M. Kruger...

ComputerWeekly.com
Get Advice Before Filing BSA Audit
Lawyers have urged users to treat the Business Software Alliance's annual software licensing audit return with caution, despite the organisation's assertion that it is focusing on effective software asset management rather than enforcement.

Silicon.com
Software Piracy Swoop Nets $2.2m
The Business Software Alliance (BSA) - a trade group supported by Apple, Intuit, Microsoft and about 20 others - has collected $2.2m in out-of-court settlements in its annual software piracy sweep.

United Press International
Nearly 25 pct. Polled Use Fake Software
A Business Software Alliance poll shows one-quarter of U.S. professionals know their offices use at least some counterfeit software.

vnunet.com
Tif Calls on IT Suppliers to End BSA Link
Blue chip user group the Corporate IT forum (Tif) is urging IT suppliers to withdraw their backing for 'self styled auditors' the Business Software Alliance (BSA).

Medill News Service
Almost One in Four Businesses Pirate Software
Are software pirates those who bootleg Microsoft CDs for personal gain? In the U.S., the culprits are more likely to be local businesses than a solo artist with a CD burner, a new study suggests.

The Independent
Microsoft Sends the Boys Round
In its grand offices opposite the Royal Courts of Justice in London's Strand, law firm Covington & Burling has a dossier on hundreds of British companies.

Newsfactor Magazine
Student Convicted of Software Piracy
A University of Iowa student has become the first person convicted as part of "Operation Fastlink," a U.S. Department of Justice initiative coordinated by the FBI that seeks to reduce Internet-based piracy.

The Journal Register News Service
Former Geek Takes on Software Pirates
She admits she often walked the halls of her high school carrying a box of punch cards used for a room-sized computer that all the nerds worshipped.

Red Herring
INFIGHTING
What's an organization like the Business Software Alliance to do when its No. 1 supporter becomes the sworn enemy of most of the sector it purports to represent?