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Microsoft to Get Tough on License Dodgers

An anonymous reader writes "PC Advisor reports that Microsoft is going to start getting tough with certain small business customers. They are going to examine their small customer license database — any discrepancies and it will call you for an audit. If you refuse it will send in the BSA and the legal heavies. "

11 of 564 comments (clear)

  1. Gets Tough? by Adambomb · · Score: 5, Insightful

    Initial notice, followed by three written notices prior to any intrusive action? I'm sorry but this does not seem unreasonable nor tough to me. Anyone in the small business league at present SHOULD be adhering to any and all licensing necessary for the software they are using TO PRODUCE A PROFIT. If they aren't, well they best not try to expand beyond the term small business at any time in the future...

    Flames as follows:

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    1. Re:Gets Tough? by DM9290 · · Score: 5, Insightful

      "Anyone in the small business league at present SHOULD be adhering to any and all licensing necessary for the software they are using TO PRODUCE A PROFIT. If they aren't, well they best not try to expand beyond the term small business at any time in the future..."

      And if they ARE adhering to any and all licensing necessary for the software they are using, should they still consent to an audit just to put Microsoft's mind at ease?

      You are very presumptuous to assume that anyone who is complying with the law would not be offended at needing to PROVE it. If I am expected to trust you to examine my physical private property with nothing other than your word of honour that you aren't going to screw around with it, then you should be willing to accept my word of honour that I am not screwing around with your intellectual property.

      And if you aren't willing to accept my word. then too bloody bad. Because my actual private property rights on the physical computer system TRUMP your speculative theory that it is illegal for me to buy 100 computers without buying 100 client licenses of microsoft windows. Obviously I'm using the computers for something OTHER than your software. Until such a time as the law says a person is required to buy quantities and ratios of software as decreed by microsoft, microsoft has no power to compell anyone to comply with such an audit. And threatening that a person will suffer some kind of negative consequence if they don't wave their rights to privacy is extortion, plain and simple.

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  2. So true by KingSkippus · · Score: 4, Insightful

    You know, not to be a troll, but I really don't see what the big deal is. Regardless of whatever ethical problems one may have with Microsoft, if a business is using illegal copies of software, that company should be sued. Buying the appropriate licenses for software is one of the costs of doing business. If I wrote a piece of software the businesses wanted and I found out that it was being rampantly pirated, I'd be wanting to stick the BSA on them, too. I don't see why Microsoft should be held to a different standard.

    If you're a business using Windows, budget for it and pay, for crying out loud. If you don't want to spend the money on Microsoft products, then use open source products instead, which have become very economically attractive and corporately viable replacements. But trying to have your cake and eat it too is just stupid.

    Oh, and as a side note, not that this won't start happening in the US by any stretch of the imagination, but from TFA:

    So far, Microsoft will use the new approach only in the UK, [UK Lincensing Programs Manager Ram] Dhaliwal said.
    1. Re:So true by Richard+Steiner · · Score: 4, Insightful

      My problem isn't with prosecuting folks who pirate software, it's more with the draconian measures that the BSA is willing to take, and the apparently difficult rpocess that a company has to go through to prove that their software is legitimate. Having disks, license keys, and boxes on site apparently isn't enough.

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    2. Re:So true by Itninja · · Score: 4, Insightful

      EULA logic:

      1: Retail stores are not required to (and usually do not) accept open-box software returns
      2: In order to actually read the EULA, you must open the software box
      3: You must accept the EULA to use the software
      4: If you do not agree to the EULA, you are instructed to promptly return the software to the store
      5: See 1

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    3. Re:So true by TimTucker · · Score: 4, Insightful

      Remember that, at least in the US, the evidence must prove guilt beyond a reasonable doubt. If you have original media, CD-cases and CD-Keys -- all the mechanisms of Microsoft's license enforcement -- it is unlikely that a jury will find in the BSA's favor for lack of purchase records.

      Reasonable doubt only applies for criminal cases, though, not civil. I'm sure that Microsoft has more than enough lawyers to file a few civil suites.
  3. Go Microsoft!!! by burnin1965 · · Score: 4, Insightful

    This is great news.

    The more Microsoft squeezes their own customers and makes it difficult and expensive to do business using Microsoft products the more these same businesses will finally open up to the idea of using open source solutions instead of consuming the spoon fed FUD from Microsoft's marketing machine.

    This will result in more competition in the market where some of us can jump in and compete with the heavies in providing added value to businesses in the form of IT related services.

    Go Microsoft!

    1. Re:Go Microsoft!!! by burnin1965 · · Score: 4, Insightful

      "Customers" who don't pay are not customers that any business wants.
      There is no reason to put customers in quotes, if you RTFA you would know that they are going after customers.

      "Microsoft is hoping to 'spark off the engagement' with its customers",

      "Microsoft keeps purchase records for volume-licence customers, and those lists can reveal usage inconsistencies",

      "At that point, if the customer point blank is refusing and or telling us he doesn't want to talk with us and we are seeing this large discrepancy, that's when we will engage the BSA"

      If you pirate 100% of your Microsoft software then you probably don't have to worry because you will not be a registered customer of Microsoft AND it gives the BSA less legal strength to audit you because you haven't signed up to the EULA which gives them the right to shake down your business.

      Don't get me wrong, I agree that customers who pirate your software can be a bad thing and shouldn't be tolerated, but what Microsoft does truely is a shake down. When they sent the BSA into my area they didn't even bother going through a list of customers. They acquired a list of ALL businesses in the area and carpet bombed the place with threatening letters to scare up some business. I know this because one of the businesses was a small Vietnamese restaraunt that didn't even have a computer let alone any Microsoft software.

      Who says that "customers" who don't pay for their software from Microsoft are going to be any more likely to pay for OSS?
      Who said anything about making people pay for OSS? One of the primary means of making money off OSS is by providing a service. Its a bit harder to pirate services, I guess you could try to enslave the people providing the service.

      it certainly says something about the state of OSS when people have the choice of using MS software illegally without paying, will choose that over using OSS legally without paying. What this says to me is that many companies would rather risk a lawsuit than use OSS software.
      Well, I'm certain it says a whole lot more about marketing and illegal monopolistic business tactics than it does about choice. The sad part is that many of the companies that Microsoft shakes down aren't big hardcore pirates who intentionally steal from Microsoft, it has more to do with poor management of a confusing licensing system and maintaining long term records to prove you did pay for what your using.

      I'm just curious if all those paid for TCO studies that show how cheap it is to use Microsoft software in your business take into consideration the cost of 1) maintaining perfect records in case your audited, and 2) the cost of going through an audit of your software while your trying to run your business, or 3) having to just pay Microsoft for the number of licenses which they "suspect" you need just to get them off your back.
  4. Does BSA give refunds for overlicenced software? by Anonymous Coward · · Score: 5, Insightful

    I work at a company that primarily uses Linux for all development.
    But all boxes even those that have only Linux installed still have Windows license stickers on them.
    Will the BSA give a refund? Perhaps the refund can go to a charity, like EFF?

  5. Re:Cringely by shark72 · · Score: 5, Insightful

    "BTW, why is it that software is the only product where supply and demand and mass production rules don't apply? Everything else that is mass produced comes down in price, software stays the same or gets more expensive."

    Lots of people don't understand the "...and demand" part. Sure, lots of us would like Adobe or Microsoft to sell software for five bucks, and perhaps many of us would only pay five bucks for the latest wares from Adobe or Microsoft. But if there is sufficient demand at a higher price, that's the price at which they will sell it.

    Many folks (at least here on Slashdot) think that the ideal point on the supply/demand curve is the point where the product has the most customers. The reality is that it's at the point where the company makes the most profit. Finding this point on the curve that works for your business means understanding the market size, knowing who you want as your customer, and who you don't want as your customer.

    More to the point: PhotoShop is $650. Enough people want to buy it at that price to allow Adobe to have a really nice building -- you should see their lobby! Sure, The Gimp is free. But even at free, it's not good enough for a critical mass of users. Lots of Slashdot armchair economics experts don't get this; they parrot the "supply is infinite thus value should be driven to zero" nonsense. Meanwhile, Adobe continues to do quite well selling a few bucks' worth of CDs at $650 a set, while you will have to look far and wide to find any serious designer who's foregone PhotoShop in favor of The Gimp.

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  6. BSA audits are argument against EULA enforcibility by Sloppy · · Score: 4, Insightful

    There's a clause in the EULA where you give Microsoft or it's agents the right to come in and audit you at any time, at your expense.

    I feel like a fool, because as I mention here, I don't see that clause in here.

    But let's assume that I didn't read it carefully, and the EULA really is how Microsoft obtains that right from their customer. If an audit requirement is in the EULA, then that's a strong argument against EULAs being enforcible. I'll explain...

    One of the problems with EULAs, is that there's never any proof (or even evidence) of the contract. Microsoft doesn't have your signature on file. EULA proponents say that the agreement is implied by the presence of the software. Ok, but even if we accept that, where's the externally-visible evidence?

    Two users buy a bunch of computer components and put together their computers. User 1 then buys a copy of MS Windows and installs it, thereby agreeing to the contract (according to EULA proponents). User 2 installs Linux; he never bought a copy of Windows, never had one, and never even implicitly agreed to any EULA.

    From the outside, these users appear identical. Supposedly, Microsoft has a contract with one of them and not the other, but they don't even know. You can't even determine who agreed to the EULA and who didn't without an audit! But the Linux user, even according to the most rabid Microsoft apologist, never agreed to a Microsoft EULA or a BSA audit.

    How can you invoke one of the terms of a license, before it is known whether or not there ever was a license?

    Using licenses to support BSA audits, begs the question as to whether or not the user consented to an audit.

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