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How the BSA Squeezes the Little Guys

netbuzz writes "Actually, 90% of the Business Software Alliance's revenue is squeezed from small businesses accused of using unlicensed software. A lawyer who represents some of them says his clients often suspect that it was the IT guy who just left — and was responsible for maintaining the licenses — who ratted them out for a big BSA reward."

16 of 341 comments (clear)

  1. This is News? by Charred+Shaman · · Score: 2, Insightful

    I thought that this has always been the BSA's standard business model.

  2. Other Reasons... by pwnies · · Score: 4, Insightful

    The BSA contends that small businesses are most often targeted because small businesses most often use unlicensed software. But of course it's not the fact that the small businesses don't have a legal team. That wouldn't have anything to do with it.
    1. Re:Other Reasons... by Volante3192 · · Score: 4, Insightful

      You're seriously overestimating the ease of the software licence world.

      This is not a world of 'One Disc, One Key.' This is a world of volume licencing, OEM licencing, per user/per device/per server licencing, student licencing, licencing servers, terminal servers. Some licencing agreements let you use a copy of a program at home that you use at work.

      That OEM copy of Office that came with your Dell? Well, you can't put that on another system if you get rid of that old Dell. That's not exactly common knowledge, nor is it out in the open; it's buried in the EULA.

      When you have companies who's sole purpose is to keep track of licences, there's something dreadfully wrong with the current system.

  3. Basic psychology by ErikZ · · Score: 4, Insightful


    When when you skimp on salaries, make a hostile workplace, and generally make life hell, don't be surprised when your employees (or ex-employees) are not looking out for your best interest.

    --
    Democrats or Republicans. They are both taking us to the same place and they are not afraid of us anymore.
  4. Re:Not many opportunities while employed by cfulmer · · Score: 2, Insightful

    The problem though is that the BSA's standards can catch even companies that are completely above-board, but haven't kept their receipts. The BSA's claim is that "If you don't have your receipt for this software, then it's pirated."

    Now, whether that would stand up in court is a separate question. It seems to me that if you have a retail box for every piece of software, that should be good enough to convince a jury. Of course, the cynic says that the BSA is going after small companies because they're much less likely to fight, so what a jury would think isn't really an issue.

  5. Re:IT guys not eligible for reward ... by Kjella · · Score: 3, Insightful

    While I'm sure there's quite a few speculating in that, small businesses also rarely have that much license management in place. If you're the kind that bought one odd PC here and one there because a new guy was hired then they rarely go into the huge asset and license management that bigger companys have. Your assets are what's in the office, and your licenses are whatever's on them. Once you start moving past that level and have PCs bought in bulk by a purchasing department (or even just one guy responsible), a lot more of the paperwork tends to get done and the reciepts properly filed. From what experience I have had, I think almost all small businesses would be burned by a BSA audit, whether they were actually legit or not.

    --
    Live today, because you never know what tomorrow brings
  6. Re:IT guys not eligible for reward ... by alan_dershowitz · · Score: 5, Insightful

    The person reporting the violation is eligible for the reward, it's not tied to position. The reason these small businesses are LYING is to cover their own butts. The IT guy said "you need X licenses" and the owner said "just install the same copy on every machine." The reason this happens ALL THE TIME is because the same owner who bullies his computer guy into pirating Photoshop on all their machines is a jerk about a LOT of things, which gets him reported in retaliation after he alienates his staff into quitting. I have seen it numerous times, and they were always reported by a disgruntled ex-employee. Instead of whining about it, they should BUY their software like the rest of us. I have seen this happen on numerous occasions, and I should note that I have never seen a business get fined or sued. They get sent a nastygram, requiring X number of days to prove compliance. The business hurriedly buys the required licenses, proves they are in compliance, and nothing more happens. Ultimately, they just want people to pay for their software.

  7. Re:How does the BSA by jasen666 · · Score: 2, Insightful

    Wouldn't they need to have some kind of proof of wrongdoing for the police to get involved? Especially since software licensing is a civil matter.

    I was trying to google a story/example of a company who fought against an audit, and what happened, but come up empty.

  8. So enforcing the law is now bad right? by cliffski · · Score: 4, Insightful

    How is prosecuting people for stealing your software 'extortion'?
    This is taking the slashdot pro-piracy meme too far. I run a (one man) company, I use legit software. It can cost a lot, but you weigh up the pros and cons and you buy it. Poser cost me $600 plus maybe another $300 of add ons. Its the cost of doing business. It's no different to paying for the desk, my PC, the heater in my home office or the phone bill.

    I have zero sympathy for small businesses that would try and undercut me by stealing software. Fuck em. let them be prosecuted. It's not like people really do not realise that photoshop or visual studio isn't freeware.

    I'm all for slashdot readers posting about how companies should use open source free software so they don't have to deal with this, but how can you defend people who KNOW there are free alternatives, but decide to steal a copy of an office suite anyway...

    --
    DRM-free indie games for the PC and Mac: Positech Games
    1. Re:So enforcing the law is now bad right? by Todd+Knarr · · Score: 5, Insightful

      So how is it piracy to buy a computer with Windows included from a major vendor like Dell or HP and not have a receipt with Windows broken out as a seperate line-item? How is it piracy to cut a check so the IT guy can run down and buy an emergency replacement PC in a hurry and have the receipt have his name on the top and not the company's? Both of those are piracy by the BSA's definition (the company can't produce a receipt in their name showing payment for Windows).

  9. Re:Come back with a warrant! by boxless · · Score: 2, Insightful

    Absolutely correct!!

    I've always told my guys if ever asked to perform and audit, of IF someone ever shows up at the door, NEVER allow it. NEVER allow the guy into the building without a court order. I think that's still legit in the US (GWB may have stopped this, I'm not sure, because it's classified).

    While not technically BSA-related, my company gets calls regularly (twice a year) from big software companies asking us to do an audit. I politely decline. Then I tell them we are covered under our parent company's volume agreement, and the phone practically goes dead on the other end. These are sales-initiated calls. Once they realize they won't get any money, they move on, just like a telemarketer.

  10. Re:I call BS by jedidiah · · Score: 2, Insightful

    So you would like to conflate records necessary for tax purposes with just general "justification of ownership".

    That's such a wonderful world you live in there.

    You keep the tax records because you will be making claims about them. What is the justification for keeping reciepts for every single thing you've ever purchased (even if you are a business) again?

    --
    A Pirate and a Puritan look the same on a balance sheet.
  11. Re:How does the BSA by FellowConspirator · · Score: 5, Insightful

    While you're generally correct, the third item is not correct. The BSA is a duly designated representative of the copyright holders with power of attorney to prosecute infringement claims. So, that part is perfectly legitimate (under US law, anyway). It's no different than hiring a private law firm to do the same thing.

    Also, the BSA doesn't impose fines. The propose settlements (as they are empowered to do by their member companies). Again, this is as legitimate in the USA. In the USA, if there was a copyright infringement, the law permits the copyright holder to seek statutory damages up to $150,000 per incident. They are not obligated to license the software to you, and purchasing a license wouldn't absolve or indemnify the infringer with regard to the prior infringement.

    The argument that you could ignore the BSA on the grounds that it isn't the copyright holder is baseless, because the BSA is a valid agent of the copyright holder.

    The argument that you could simply come into compliance and that would eliminate any liability for prior infringement is also incorrect. The liability remains until it's legally settled -- either by out-of-court settlement or as the result of going to court (which could incur much higher costs and damages).

    Also, I'd point out that users of software from BSA-affiliated companies generally agree as part of the license to submit to audits on demand as a condition of the license.

    Using proprietary commercial software is a huge legal and fiscal liability for a company. If the company cannot devote sufficient resources to dotting all the i's and crossing all the t's to be 100% certain it's compliant, it probably shouldn't touch the stuff. Clearly, certain software will be necessary for certain businesses, but it behooves those companies to familiarize themselves with the issue and absorb the costs as part of the cost of doing business.

  12. Re:Thanks by XopherMV · · Score: 4, Insightful

    Exactly. When are the Boy Scouts of America going to sue the Business Software Alliance for trademark infringement over the use of "BSA"? The Boy Scouts of America have been around since 1910. The Business Software Alliance has been around since what, the mid-1990's? Talk about a hypocritical and clear-cut case of trademark infringement.

  13. Re:How does the BSA by RealGrouchy · · Score: 2, Insightful

    Police need evidence of wrongdoing to begin an investiation; however, it is the purpose of the investigation to determine if there is sufficient evidence to constitute proof.

    I think the point you were trying to make is that if the BSA files a complaint and it turns out there is no evidence whatsoever to support this claim, the BSA should be held in contempt.

    - RG>

    --
    Hey pal, this isn't a pleasantforest, so don't waste my time with pleasantries!
  14. Re:IT guys not eligible for reward ... by alan_dershowitz · · Score: 2, Insightful

    The last few places I have worked, people have been fired by having their "position removed." This is what happened to him. Then less than a year later there is a restructuring and the position comes back under a different name. Now you know. Those laws might help if you have money or time, or you still might lose. However, you are trying to make it look like there is a power balance between employer and employee, and there is not. There is redress, but it is extremely hard to make it stick, and even harder to not come out looking like a pariah to other employers.