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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."
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.
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).
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.