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Is the BSA "Grace Period" a Scam?

An anonymous reader asks: "I work at a small non-profit that has 18 employees plus a 13 seat computer lab. We received a form letter from the Business Software Alliance (BSA) telling us to do a self audit and if we find any unlicensed software to report it during our 'Grace Period' because 'if you organization's software is not licensed, it could become to focus of a BSA investigation'. Now this is obviously a method to scare up some business for the BSA members. If we ignore this, how likely is it that we will be 'investigated'. I know that I cannot produce the original CD's and/or documentation for some of the software that we HAVE paid for."

25 of 794 comments (clear)

  1. Required to produce documentation? by assaultriflesforfree · · Score: 5, Insightful

    Perhaps some pertinent questions:
    Supposing the BSA does perform an investigation, I'm wondering what the actual legal procedures are.
    Are you required to maintain documentation of every last opened piece of software? I know at the CIT department I worked in for school, we had Windows 95 manuals stacked up in storerooms, even though there was a school wide license. I don't know if this is required though.
    Furthermore, what happens if they find you're missing a couple documents, and decide to take you to court. Is any jury going to decide, based on either a "preponderance of the evidence" or "beyond a reasonable doubt" standard that this software was obtained and/or used illegally?
    Any legal experts out there?

  2. I'm not a lawyer, by sstory · · Score: 5, Interesting
    but as far as I know, a trade group like that cannot demand access to your computers, or your facilities. The BSA has no power to force any sort of audit of your licenses. We have old computers at work, and might not be able to locate proof that we paid for some of this stuff years ago. I manage the computers there, and if the BSA ever contacts me demanding an audit they'll be told to choke on it.

    If it's somewhere in a license they can show we bought, that we have to allow access to the installed software, then for every license they can show, I can provide an adequate installation.

    1. Re:I'm not a lawyer, by gmerideth · · Score: 5, Informative

      Microsoft is part of the BSA and in their agreement they can damm well do this. Still didn't stop me from ignoring it.

      As my lawyer told me, replying to it simply gives them a name and address to send more correspondance to.

      So I threw mine away.

      --
      Why do overlook and oversee mean opposite things?
  3. What investigative powers/authority do they have? by citog · · Score: 5, Informative

    I checked their About page and found the following statement:

    Promoting a safe and legal online world

    The Business Software Alliance (BSA) is the foremost organization dedicated to promoting a safe and legal online world.

    We are the voice of the world's software, hardware and Internet sectors before governments and with consumers in the international marketplace. BSA members represent the fastest growing industries in the world.

    BSA educates computer users on software copyrights and cyber security; advocates public policy that fosters innovation and expands trade opportunities; and fights software piracy.


    Nothing in there suggests any legal authority. They are advocates not enforcers. Those letters strike me as very misleading. Anyone want to post a copy?

  4. Did you register your software recently? by Anonymous Coward · · Score: 5, Interesting

    We got one of these...

    They called a 'truce' in our town of 500. We are a 2 employee show, run from a basement.

    We bought a bunch of stuff, but never sent in the registration cards. We registered some stuff back in '97-'98 probably, and nothing since. We haven't gone out of business, so they figure we're probably pirating something. We are not, but since we haven't registered anything in a while (Microsoft Tech support is sooo valuable!), and are continually considering the move to Linux (just a matter of time...) we come up in their database as a possible pirate. Oh the miracles of databases!

    All we did was make a file of receipts and certificates, and they can wade through it if they come a knockin. We're sure it's all there, and we can hopefully sue if they end up siezing a computer, especially since we are legal.

    We had to look real hard for the licenses, but we found them. The certificates are useless without a receipt.

  5. Ignore it, it's more like SPAM that a real letter! by Dave21212 · · Score: 5, Interesting

    I work in an enterprise environment. Last year, I registered for one of those free magazine subs and a few weeks later... viola, a letter from the BSA using the same name/address pair.

    The BSA must be getting names from those lousy online surveys (company size, whats your position, how much software will you be buying in 6,12,24 months).

    Sounds more like SPAM to me !

    --
    "Whoever would overthrow the liberty of a nation must begin by subduing the freeness of speech."--Benjamin Franklin
  6. One particular experience... by dfenstrate · · Score: 5, Insightful

    Some one wrote this the last time the BSA came up on Slashdot- sorry, I saved the quote but not the poster. The conventional wisdom thus far from other posters seems to be 'ignore it,' but if it goes further, consider this:


    I know someone that was audited by the BSA and decided to fight it. Basically they countered by stating they wanted full disclosure of who reported them so as to determine the validity of the claim prior to wasting internal resources and dollars. They also argued that the reporting tools are a violation of privacy. Yes, they expected them to place some software on their network which scans their entire network not to mention each machine's registry. Third, they also argued that even if they were in violation of license, the license is between them and the vendor (after all, the license does not allow for the BSA as having legal proxy interests) and unless the vendor in questions decides that they'd like to personally persue the issue, the BSA does not have legal authority or the legal grounds to persue the action. Furthermore, they argued that even if something odd was discovered and they lost, only the government has the right to impose fines on legal matters as such and they would be within their legal rights to simply purchase any outstanding licenses or settle directly with the vendor in question and completely dismiss the BSA altogether thereby eliminating the need to pay any fines or added fees.

    Last I heard, even though two ex-employees had turned them in, the BSA simply walked from the issue as, from what I gathered, they really don't have a legal leg to stand on.

    --
    Alcohol, Tobacco and Firearms should be the name of a store, not a government agency.
  7. its not a scam.... by PhreakOfTime · · Score: 5, Informative

    A scam, probably not. Is it smart, also probably not. Im in the chicagoland area and have been hearing the commercials for BSA on the radio everywhere across the dial. What they are aiming for is to get people turned in by relying on an unhappy employee to rat them out.

    That being said, keep in mind that the BSA is just an organization set up to find pirated software and collect fees. Fees that they no doubt get a cut of. They seem to have no problem using peoples fear and turning it into the driving force of their biz.

    You are under NO obligation to report anything to them, unless they hand you a court order. They are an independent entity and have no more ability to legally inspect your systems than I would. so it would be in their best interest to make it seem that they do have that ability

    This seems to be a page right out of the RIAA playbook, pretend something is true and youll fool at least some of the people

    You can fool some of the people some of the time, all of the people some of the time, but never all of the people all of the time

  8. More Confusion... by Smelly+Jeffrey · · Score: 5, Funny

    I got confused when I read about the BSA and software. I was wondering what the Boy Scouts of America had to do with is. My best advice: Be Prepared.

  9. Re:Ignore it, it's more like SPAM that a real lett by jumpingfred · · Score: 5, Interesting

    I think you are correct in that they just get a bunch a mail lists and start firing off the letters. We started getting these letters when my wife passed the bar.

  10. Has to be said by stendec · · Score: 5, Funny
    knock knock

    Who's there?

    BSA: (mumbles)

    Who?

    BSA: Unicef.

    Oh! Why didn't you say that before?

    BSA-landshark attacks pirate who opens the door.

  11. Me and the Boys by Anonymous Coward · · Score: 5, Funny
    "Me and the boys would really hate for something to happen. We can sell you insurance to prevent, say, that vase that Frankie is leaning against from getting broken. Oops, like that."

    Actually, this campaign was going on two years ago. In the fall, I think. Same scam.

  12. No leg to stand on. by dentar · · Score: 5, Interesting

    I've seen these letter before from clients. If they do not specifically charge you with piracy, stealing or whatever, throw it out and don't bother downloading their spyware.

    You have the same rights you always had. They have to have probable cause to get a warrant, and they have to have a warrant before they can come into your office forcibly. A warrantless vampire cannot come in unless you invite them in.

    IANAL, but I believe that as long as you have practiced due diligence and can show that you took reasonable steps to not break the law, then no judge with an actual brain would rule against you.

    That being said, the BSA is looking for those who buy one copy and load it all across the office. I know of a company that did that, got ratted on by a disgruntled employee. Bottom line: they paid big. These are the fish they want to fry, and there are plenty of them out there.

    Now, if you've been pirating software, and get a letter, and throw it out, and they still come after you, you won't get any sympathy from me!

    --
    -- I am. Therefore, I think!
  13. A friend's solution to BSA, lawsuit threats, etc. by Anonymous Coward · · Score: 5, Funny

    A friend of mine owns a very small niche vertical intergration software company. He has a canned response for all threats of lawsuits, BSA investigation, etc. The only people he doesn't use this on is the government, since they don't need any help getting any more fucked up.

    "Can I please have your lawyers contact number, I have a fax machine, and will send all information I have to your lawyer." He then sends one piece of information (a page, one liscence, etc) at a time, every hour on the hour, to said lawyer, to cause their clients legal bills to explode. Considering that he logs everything he does and has backups dating back for the last 15 years, he has a lot of information that he can send. Legal bills are quick ways to empty someone's pockets.

  14. Re:How I *THINK* it works is... by rindeee · · Score: 5, Insightful

    And that's when I tell them "prove I didn't". The burden of proof is on them. The only organization in the US that this DOES NOT apply to is the IRS. The BSA only has as much power as you give them. Has anyone else seen the page on their web site where you can rat your employer/friend/etc. It has a picture of some idiot with an evil *I stuck it to da man* smirk on his face and the whole bit. Gimme a break.

  15. Sample Letter by Anonymous Coward · · Score: 5, Informative

    Here is the letter we got, mispellings are mine, formatting isn't perfect:

    BSA, 1150 18th Street NW, Suite 700, Washington, DC 20036

    Is your business using unlicensed software? If so, the Business Software Alliance is offering a one-month opportunity to get licensed. Your BSD Grace Period Participation ########

    January 22, 2002

    MY ADDRESS

    Dear FOO,

    You may have heard that the Business Software Alliance is investigating ANYTOWN area organizations that use unlicensed software. If your organization's software is not licensed, it could become the focus of a BSA investigation. So, audit your software now. Unauthorized copying is the same as stealing. The penalties for copyright infringement are serious - sometimes totaling hundres of thousands of dollars - and in this economy, can your business affort that risk?

    BSA is an association representing the leading software companies: Adobe, Apple, Autodesk, Avid, Bently Systems, Borland, CNC Software/Mastercam, FileMaker, Internet Security Systems, Macromedia, Microsoft, Network Associates and Symatec. Together with our memebers, we educate the public about software compliance and protect intellectual property rights.

    Would you be able to tell if an employee had installed an unlicensed software program? Your business has until February 28 to get licensed.

    BSA recognizes that, for whatever reason, your company may not have managed its software assets properly. That's why from February 1-28, BSA is offering a Software Grace Period to business like yours in ANYTOWN. Please take this time to review your software installations and usage and, if necessary, acquire the licenses your business needs. If, after you have participated in the Grace Period, your organization becomes the focus of a BSA investigation, BSA will not seek to impose penalties for any unauthorized copying that occurred before February 28, (unless your organization has already been informed that it is under investigation). If BSA contacts you, just show your Grace Period Participation Nuber and the software purchase receipts. [Please see the reverse for terms.]

    Not sure if your organization is fully licensed? BSA can help you find out.

    Visit our Web site at www.bsagrace.com for more information and to download the free Software Audit Tool, or call our special Grace hotline at 1-877-536-4BSA (1-877-536-4272). If you find that your business isn't 100% licensed, contact your software vendor immediately and buy the software licenses you need before the Grace Period ends on February 28.

    Sincerely,

    Bob Kruger, Vice President, Business Software Alliance

    Grace Period Participation Terms

    Bsd is offering a one-month Grace Period between February 1-28, 2003.

    1. For your organization to qualify for the Grace Period campaign:

    • it must obtain a Grace Period Participation Number either through receipt of a BSA letter or from the Grace Period Web site - www.bsagrace.com;
    • its headquarters must be located within the following zip code: ANYTOWN 99999
    • it must not have previously received notice that the BSA or its members (listed below) have received a report of infringement and are investigating it; and
    • prior to, or during the Software Grace Period (February 1-28, 2002), it must have acquired sufficient software licenses to ensure that all software published by BSA members installed on its computers is properly licensed.

    2. If, after you have participated in the Grace Period, your organization becomes the focus of a BSA investigation, BSA will not seek to impose penalties for any unauthorized copying that occurred prior to February 28, 2002 (unless your organization has already been informed that it is under investigation). If the BSA should contact you, just show your Software Grace Period Participation Number and software purchase receipts.

    3. For the purpose of the Grace Period, BSD members are: Adobe, Apple, Autodesk, Avid, Bently Systems, Borland, CNC Software/Mastercam, FileMaker, Internet Security Systems, Macromedia, Microsoft, Network Associates and Symatec.

  16. A useful article on this... by bagofbeans · · Score: 5, Informative

    Original at http://www.eweek.com/article2/0,3959,19093,00.asp
    July 30, 2001
    Truce or Dare
    By Michael R. Zimmerman

    If you're a small or medium-size company, there's a good chance you've heard from the Business Software Alliance about getting your software compliant with its licenses. If not, you probably will. The group is well into a nationwide letter and radio campaign to do just that.

    But what you probably don't know is that, like so many of the companies that stuff your mailboxes with junk mail, the BSA, which represents such software giants as Microsoft Corp., Adobe Systems Inc. and Apple Computer Inc., has no intention of following up on its letters--regardless of how threatening and personal they may seem. It won't phone. And it won't pop in for a surprise audit.

    Instead, an eWeek investigation reveals, the BSA's campaign is primarily a marketing effort essentially designed to scare people into buying more software. But for many enterprise customers who are quickly becoming fed up with the group's hardball tactics, the campaign is having the reverse effect: compliance, then departure to alternative products, like open source.

    The reason the BSA Truce Campaign is more bark than bite is simple: As part of each Truce Campaign, the group sends out hundreds of thousands of letters at a time to businesses in a handful of cities. For the month of July, for example, it mailed 700,000 letters to businesses in five cities between New York and Portland, Ore. As such, it would be virtually impossible to contact even a sample of those companies to check up on their progress or lack of progress.

    Indeed, one of the only ways the BSA is gauging the success of the Truce Campaign is by the size of the spike in software sales for various cities as the BSA passes through, which so far total 19.

    "Everywhere we've run the Truce Campaign, we're seeing dramatic increases in sales," said Bob Kruger, vice president of enforcement for the BSA, in Washington. "So it's being successful."

    But a deeper look into the Truce Campaign, as well as an ongoing and almost identical anti-piracy campaign by Microsoft, a founding member of the BSA, reveals something more complex: the possible beginning of an entirely new business model built around anti-piracy and fear. The bottom line: There's money in anti-piracy, and plenty to go around.

    To be sure, piracy results in major losses of revenue for the software industry. According to the BSA, $2.94 billion was lost to piracy in North America alone last year, while $11.75 billion was lost to it globally for the same period. But so far this year, those figures have declined.

    Since the launch of its enforcement campaign in North America in 1993, however, the BSA has brought in about $70 million in settlements, a mere drop in the bucket compared with the overall total. Now it seems the industry, with the help of the BSA, is taking a new tack, with its focus on generating revenue the old-fashioned way.

    Consider the following: Microsoft has been busy constructing a network of support services through distributor and licensing partners to assist customers in assessing and auditing their software to comply with their licenses.

    One Microsoft partner, License Online Inc., of Bellevue, Wash., tracks where the BSA is headed and rounds up as many of its 36,000 registered channel partners as it can for those cities to swoop in and sell licenses.

    "When we know what area the BSA is going into, we're going in scrambling to piggyback on their marketing efforts," said Sharon Erdman, vice president of marketing for License Online.

    License Online offers its partners across the United States a 12 percent commission on any licenses they sell through License Online. To get the contractors rolling, the company supplies them with a list of companies Microsoft has sent its anti-piracy letters to. In addition to commissions, the contractors are told the companies contacted have the potential to become "long-term" customers.

    "Microsoft has absolutely partnered with businesses who can address the concerns," according to Devin Driggs, a Microsoft spokeswoman in Lake Oswego, Ore. "It feels a responsibility to its customers to address any issues with compliance they may be experiencing."

    As far as the anti-piracy fight becoming a business unto itself, Driggs said Microsoft views the subject as an industry issue.

    Kruger acknowledged that the BSA's letter campaign is a direct marketing campaign designed to encourage users to get in compliance and not directed at any company in particular. The group uses common mailing list companies such as Dun & Bradstreet Inc. to generate the lists.

    Microsoft's campaign is more deliberate, company officials said.

    "I don't think we're doing anything that's random," said Nancy Anderson, associate general counsel for the company, in Redmond, Wash. As part of Microsoft's licensing agreements for its products, Anderson said, "the customer agrees to assure us they are current. The obligation is on them to assure them and to undertake an audit if requested by Microsoft."

    Not surprisingly, however, the hardball tactics are having a negative effect on customers.

    "We were nailed for tens of thousands of dollars," said Cary White, an IT manager at a financial services company in San Diego who acted on a letter from Microsoft. "We received a letter addressed to our CEO that they received a tip we were not compliant with Windows, Word and Excel. ... That was a fishing expedition."

    "My company is to completely go away from Microsoft," White said. "We're not going to buy any more Microsoft products. It's my decision. They're alienating their customers. I don't trust them."

    The fear factor

    For the BSA and Microsoft campaigns to work, the fear factor is essential, according to letter recipients contacted by eWeek.

    "[Fear] is the first emotion when you get the letter. It's like, 'Oh my God, the Gestapo's coming,'" said Robert Fuller, president and chief operating officer of R.E. Fuller Engineering Consulting, a one-man company in Camas, Wash.

    The BSA has struck fear in customers' minds through carefully worded, but threatening letters and an accompanying radio ad blitz warning businesses to beware of disgruntled employees dropping dimes on them.

    According to the BSA's Kruger, the Truce Campaign is merely a 30-day grace period companies can use to get their software in compliance. If a company does use the time to get in compliance, it will avoid any potential future BSA investigation that may spring up as a result of its radio ad blitz.

    But that doesn't explain the BSA's use of what many are calling threatening language. What's troubling to businesses, besides not being informed on how they were selected for the mailing list, is the letter's accusatory tone. For example, one line reads: "If you're caught [with unlicensed software], your organization could face penalties totaling hundreds of thousands of dollars."

    And while Kruger insists the Truce Campaign is not a vehicle for generating leads or tips, that contradicts the thrust of the BSA's radio spots.

    For example, at one point, the announcer in a radio spot for the Truce Campaign currently running in New York asks Kruger how the BSA receives most of its leads. Kruger responds: "Most of the calls come from current or former employees. I would say to businesses that, unless you have no current or former unhappy employees, you are only one phone call away from becoming the target of a BSA investigation."

    "My management's concern was that there was almost a bit of paranoia about [the Truce Campaign]," said Peter Rassmussen, a technology manager at a Midwest retailer. "There were radio ads going on at the same time that sounded like Joe Stalin encouraging you to turn in your parents."

    As for Microsoft, Anderson said, it's not in the company's interest to frighten customers. "We don't want to create anxiety," she said. "It's not our interest."

    Misleading the pack

    Exacerbating the anxieties for companies contacted by eWeek that have received Truce Campaign letters was the seemingly intentional vagueness of the letters, vagueness that is compounded by misleading information.

    For example, though the Truce letter establishes a 30-day deadline for software reviews and includes a line that states, "If the BSA contacts you, just show your Truce Participation Number and software purchase receipts to take advantage of the Truce," the BSA has no intention of contacting any letter recipient.

    But at least one radio spot, the one currently playing in New York, implores letter recipients to "review your software installations and acquire the licenses you need before the Business Software Alliance returns to New York City!"

    Still, Kruger insists: "We don't visit any of these companies. The ones getting the letters are not under investigation."

    When asked if these discrepancies were misleading or at least confusing, Kruger said any letter recipient who is confused can go to the BSA Web site or call the Truce hot line for information.

    Also at issue is ironing out exactly what authority the BSA has to present deadlines, request software reviews or even conduct audits. According to Kruger, the only authority the BSA has, as power of attorney for its members, is to seek court orders on behalf of its members to conduct software audits on businesses suspected of using pirated or unlicensed software. But even then, the BSA does not seek such court orders frivolously.

    "We only proceed on the basis of reliable information," Kruger said. "We take pretty good pains here to make sure our cases are based on solid information before going forward."

    Indeed. Despite the tone in the Truce Campaign letters and radio ads to the contrary, the task of proving guilt lies with the BSA.

    "The burden's on the BSA to prove itself to the court," said Peter Baruk, director of anti-piracy at Network Associates Inc., in Santa Clara, Calif., and former vice president of piracy for The Software & Information Industry Association, another software advocacy group in Washington that conducts piracy investigations. "If you're contacted by the BSA and doing the right thing, you have nothing to worry about. So, why respond? You can and be a good corporate citizen. [But] there's no reason why you'd have to react to a letter like this."

  17. How it works by Kevinv · · Score: 5, Informative

    BSA targets particular cities and/or business types and sends out blanket letters to companies that meet the requirements. You can get a list of targeted cities on BSA's web site:

    http://www.bsa.org/usa/events/

    Any sales increase in the city immediately after mailing of the letters gets BSA money. Now the letters don't really have an affect if they can't show they sometimes follow through.

    The BSA will then go after certain targets either ones they think are particularly egriegous or they have pretty good proof of violations (the BSA has registration/purchase info from their member organizations plus any public informaion about companies so they can see a company with 1000 employees appears to only own 100 copies of Office -- this may be legit).

    So, the BSA will ask for proof of purchase for software from their member organizations (their ability to do this given in the license agreement for most software). Note SERIAL NUMBERS AND CD'S ARE NOT PROOF OF PURCHASE. You MUST HAVE RECEIPTS!

    If you refuse they can file an civil copyright infringement lawsuit against you and can ask the court to impound the computers as evidence. They can also ask the prosecuting attny's to bring criminal actions against you.

    Details of why the BSA has the law on their side:
    http://www.bsa.org/usa/antipiracy/law/

    I'd say for a small organization you're probably safe -- unless you had somebody get pissed off at you and reported you to the BSA and raised their awareness of your company from mailing address to red light.

    Under current US law the BSA acts legally. If you disagree with this you can choose software that has no such problems (i.e. open source, free software) or you can work to change the law while obeying it or you can start some kind of civil disobedience (just remember -- if you break the law you still have to pay the price for breaking it, even for good intentions. many civil rights fighters ended up in jail to prove their point, if you can't afford the price don't use this method).

    I prefer a mix of 1 and 2. I don't think the right to copy other people's software is worth jail time to go the disobedence route.

  18. Stole from them? by smartfart · · Score: 5, Interesting
    You're kidding, right? The BSA doesn't produce any software. They only run this scam (IMHO, the whole thing is a scam, from beginning to end) because they can get cash from Microsoft and other companies that write software by threatening these companies' customers.

    Personally, I refuse to play. I will not purchase any software from any company that employs the services of collection agencies such as the BSA. Furthermore, I will do everything in my power to dissuade my clients from purchasing software from these companies.

    1. Re:Stole from them? by anon*127.0.0.1 · · Score: 5, Interesting

      You might want to check out who the BSA members are before you decide you're not going to buy software from any company that employs them. Lets see... Microsoft, Apple, HP, Adobe, Cisco, Novell... quite a collection.

      The comparisons to the IRS are pretty apt, though. What generally happens is that the BSA gets a tip from some disgruntled employee/ex-employee that company X is using pirated software. The BSA picks a few of those companies at random (or maybe they have some criteria) and takes 'em to court. Unfortunately, the onus is on Company X to prove that they have licenses for all the software they're using. If they can't, they have to pay for the software and generally get whacked with "punitive damages" as well.

      The BSA uses those cases to threaten everyone else into doing those bogus "self-audits" and sending hush money to the BSA.

      I don't mind paying for the software my company uses, but keeping track of all the licenses is a major pain in the ass. Every software seller has a different definition of what you have to be able to present to prove that you have a license. A piece of paper? Something with the serial number? The installation CD?

      Then they all have different license terms. Some require you to buy one copy for each computer, some let you buy one copy for each concurrent user, some let you uninstall the software from one system and put in on a different one, some make you you buy a fresh copy for each system... it's a HUGE hassle, and the software vendors don't really seem to give a crap about how difficult they're making it for their customers.

      --
      I am NOT a man!
      I am a free number!
    2. Re:Stole from them? by Kenneth · · Score: 5, Insightful

      When I go to Best Buy, and give a company like Apple - who is a member of the BSA IIRC - $129 for a copy of MacOSX how is that extortion? How are my rights being violated? Why is that idea so offensive to so many people?


      Dude, you're way missing the point here. Sure a lot of people feel strongly enough against non-Free Software that they won't buy it, but this case is different.

      The BSA is essentially running a protection scheme. Here's the scenario: Let's say you run a business that's large enough that it's difficult to keep total track of everything on every machine.

      You don't (purposely) violate any software licenses, and take pains to follow them correctly. However there is significant overhead to keeping track of what you can and can't do with the software you've bought, and violations are sure to occur. There's just too much to do not to make an error.

      Some employee you've pissed off (and if you're an employer you will piss off an employee) goes to the BSA and tells on you. They don't need actual evidence. To audit you. They 'nicely' tell you to audit yourself and give them money for anything that might not be compliant.

      Let's say that you can't find proof that you purchased some of the software you purchased. You then have to pay for that AGAIN. If you don't pay them for it, and they audit you, you then have to pay for it anyway, plus exorbidant fines because you couldn't proove that you weren't guilty of a crime.

      They also use this as a scare tactic to scare people from going to Open Source, or even competitors. If you are looking at not renewing a licence you get a message that you might be audited. Even if you are in total compliance, it's rather expensive and labor intensive to go and make sure. Were my university to be audited, it would cost around $2,000,000 just to double check, and given the number of people using computers (about 10,000) it is virtually guaranteed that someone somewhere either wasn't careful with licensing proof, or just flat out pirated something.

      What they are doing is no different than the Mafia vandalizing someone's business and then asking money to make sure such things don't happen again. It's protection money, nothing more nothing less. They just couch it in a slightly less ominous sounding name.

      Many Open Source advocates have no problems with paying for software, music, movies or books. What causes problems is when someone tells me I can't do what I want with the media I've bought that I get a little upset.

      If I want to make a mix for my car, the law says I have that right. They're trying to stop me. If I want to use software on a different machine, I have that right. Under strict copyright law (may be different under DMCA now), I can put software on any number of machines as long as they aren't being used concurrently. I can copy movies or cd's (as many times as I want) as long as I don't distribute them. As long as I dont' redistribute what I do, I can do whatever I want with what I've purchased.

      Under the Constitution of the United States, it is not my responsibility to prove my innocence, it is your responsibility to prove my guilt. If you can't prove my guilt, I am to be considered innocent. The BSA has neatly ignored this, and gotten courts to go along with unconstitutional legislation. Fines are imposed without trial, and without proof of guilt, in direct opposition to the Constitution.

      More than a Boycott needs to be done to the members of the BSA. There needs to be a trial that addresses flagrant violations of the constitutional rights of individuals all over the United States, and an appropiate punishment needs to be given.

      --
      There is a civil war coming in the United States. Remember which side has most of the guns
  19. From someone who lived through a BSA audit by TheCabal · · Score: 5, Interesting

    We had the BSA sicced on us by a disgruntled ex-employee. We didn't receive one of those mass mailed letters, we received a bona-fide messenger delivered packet from the BSA, naming specific software titles. Also in the letter was their "gracious" offer to do a self-audit and orders to report the results of the audit to them. Failure to comply with their demands would result in the BSA taking us to court, getting a court order to come in and conduct an audit themselves, with their software and people,and under the eyes of either the State Troopers or US Marshals to make sure that we didn't interfere.

    So we did an audit and found out that we were only one copy of a certain software title out of compliance. We sent back the results of our audit, along with copies of our licenses to the BSA, along with an offer to buy the extra license at full retail price. They replied that our licenses and audit results were not good enough, that they also wanted us to produce the receipts for the software.

    The receipts. Apparently, having the licenses are not good enough. Or maybe the BSA figured they could strongarm some money out of us, so they leaned a little harder. I had heard that before the BSA sends out these demands, they research the company to see if they have enough cash to make their efforts worthwhile. Having recently completed a series of capital funding, I suppose we looked mighty tempting.

    This meant many days of going through three years of financial records. Eventually, we found most of our reciepts and purchase orders, except for a few things from the very beginnings of the company when the records weren't really kept. But we did have the licenses. Of course, the BSA, now really smelling blood, came down with an arbitrary amount to fine us along with a statement that if we did not pay this (ridiculous) sum for basically being one copy out of compliance, they would take us to court and demand far more.

    I was never told how much exactly we had to pay the BSA, but I heard it was "not insignificant". It was somewhere in the 5-figure range. All for one copy of Visio, and some tossed receipts from three years ago.

    I always argued that the BSA had no right to demand our receipts and financial records since we were able to produce the software licenses. It's a bunch of crap. I can't see how the BSA can legally operate in this country. There is another organization that operates in a similar fashion- it's called the Mafia. Bastards.

  20. Oh that reminds me by jsse · · Score: 5, Funny

    one of my client did return the audit form with a letter saying that the only license they got is GPL and a copy was attached for their reference.

    Then Microsoft sales came the other week and offered an attractive 'switch' packages. How Microsoft knew he need a switch is a mistery.

  21. Re:BSA learned from the master by berzerke · · Score: 5, Interesting

    ...[BSA] if you don't let them in, how can they prosecute/obtain a warrant/whatever?...



    When the BSA does decide to do an audit (as opposed to a mass mailing), it's because they already have some evidence of illegal software use. Most of the time, this is from a former employee, disgruntled employee, or the like (i.e. a contractor you pissed off, former customer, etc.).



    If you don't let them in, then they go before a judge and get a warrant, and then US Marshals come in, and you won't refuse the marshals entry (for very long).



    I know because a friend of mine got raided. The "tip" came from a business rival. The Marshals found everything was in order and the tipster got billed for the cost of the raid.

  22. I disagree by Featureless · · Score: 5, Insightful

    IANAL. That said, there is a generally accepted legal theory that two parties cannot enter into a binding agreement if one of them could not be expected to understand that agreement, is not properly represented when entering into that agreement, or the agreement contains "fine print" conditions which defy common sense or expectation, or which are intended to deceive. There are other exceptions as well, but these are the important ones for the moment.

    I say all this because the shrink wrap license ("EULA") - through which the BSA claims to derive its authority - is thus on extremely thin legal ice. In fact, I am on a neverending quest to find reference to any (any) case where any of the more onerous terms of a shrinkwrap license have prevailed in court. (UCITA, of course, changes everything - but that's a subject for another post.)

    Almost all users of computers never properly understand the "contract" they have supposedly "agreed to" by using their software. They are ignorant of the need to keep and maintain records (as if their word processor was a firearm or motor vehicle), and the idea of granting some organization permission to enter their premises and inspect, demand documentation, and otherwise claim supra-police-like powers just to "insure" that they're not violating their "agreement" must profoundly, breathtakingly, and absolutely fail the test of "reasonable expectation."

    In the case of copyright violations, there are criminal and civil penalties. You can sue me for stealing your software. You can also call the police on me, who may choose to arrest me and try me for said same. But enter my place of business uninvited to "inspect" or "audit" on the basis of a shrink wrap license? I don't think it flies.

    Let's sum up.

    The BSA claims a variety of privileges (from the EULA) which it doesn't really have. It threatens you with actions which are almost certainly illegal. Software users are unaware of their "obligations" under their "licenses" even if you consider them binding (which is asinine), and even when they attempt to follow the rules, there are many cases where it will not be possible to provide documentation "to the satisfaction of the auditor" - whose standard is arbitrary, and purposefully engineered to make it unlikely you can meet it. You are frequently given a very short time in which to reply to the ultimatum - purposefully short, to insure you will not have time to properly inspect your facilities before making a decision. Then there is the oft-cited case of schools and charities which use donated equipment for which the paperwork is not, and probably can never be, in order.

    The cost of self-defense is borne by the defender in civil court. Knowing one is on the receiving end of a legally specious and improper legal challenge is one thing. Being able to afford your defense against some of the world's richer companies is quite another.

    Most victims who receive this have done everything right, but have not retained all their receipts, and/or cannot afford the considerable manpower and expertise it will take to insure "not one single unlicensed copy of anything" exists on any of the machines in their organization. Consider... will even one violation, even when made by an employee in violation of a company policy, result in punitive damages?

    Generally the BSA gets what it wants: a "settlement" in which they are paid not to "report" to federal authorities and/or file a questionable lawsuit. The victim pays again (perhaps many times again) for what they already own.

    We have come a long way from the simple world of Best Buy which you describe.

    The fact that no one understood their options or the consequences of their choices is the very thing at issue here. Extortion, coercion, and foul play describe these practices perfectly.

    Groups like the BSA are not a "price to pay for preventing theft." Their tactics are both immoral and unnecessary. They have no place in the enforcement of copyright. The police are the ones whose job it is to handle software thieves. But then there'd be no money in it for anyone, eh?