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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."

20 of 341 comments (clear)

  1. Thanks by niceone · · Score: 4, Funny

    I would like to thank editors for giving us all another chance at first post on this story. I missed it a few hours ago - wish me luck this time!

    1. Re:Thanks by seebs · · Score: 4, Funny

      Zonk's really improving. He used to post dups days or even weeks after CmdrTaco posted them. Today, he posted the dup several hours BEFORE CmdrTaco did!

      --
      My blog: http://www.seebs.net/log/ --- My iPhone/iPad app: http://www.seebs.net/seebsfrac/
    2. Re:Thanks by Anonymous Coward · · Score: 5, Funny

      Too many inappropriate Boy Scout jokes come to mind from the title of this post.

    3. 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.

    4. Re:Thanks by Deadstick · · Score: 4, Funny

      It won't be infringement unless the software guys copy the Boy Scouts' core activities:

      -Hanging out in all-male groups.
      -Dressing up in matching outfits.
      -Doing arts & crafts projects.
      -Being rewarded with jewelry.
      -Excluding gays.

      rj

  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. IT guys not eligible for reward ... by AHumbleOpinion · · Score: 5, Interesting

    "... his clients often suspect that it was the IT guy who just left -- and was responsible for the maintaining the licenses -- who ratted them out for a big BSA reward ..."

    People responsible for licenses in some manner are not eligible for the reward. IT guys doing this are disgruntled and just trying to "get even".

    Keep in mind that small business was not chosen merely because they have fewer resourced available to defend themselves, but they were also the worst offenders. Betting that their size would keep them under the radar of Microsoft, Word Perfect, Lotus, Borland, etc back in the day. I'm not defending the BSA's actions, but their targeting is not entirely devoid of reason.

    1. 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.

  4. 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.
  5. How does the BSA by jasen666 · · Score: 4, Interesting

    force a company to allow an audit or "investigation"?
    What do they do when a small business owner says, "I use strictly Linux on my computers, no, you can't come in and look around, go pound sand."

    1. Re:How does the BSA by Anonymous Coward · · Score: 5, Interesting

      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 pursue the issue, the BSA does not have legal authority or the legal grounds to pursue 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.

    2. 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.

  6. Hmmm... by rice_burners_suck · · Score: 5, Funny

    Wouldn't it be cool if some disgruntled worker gets fired from the BSA and then turns around and rats the BSA out to the BSA? He'd have to get a reward, and the BSA would have to charge itself a hefty fine.

  7. Re:What a surprise! by gstoddart · · Score: 4, Funny

    Have you read BOFH? No way it happens like that.

    (1) BOFH tells bosses they really should pay up for legal licences.

    (2) BOFH bosses agree and cut a cheqeue

    (3) BOFH and PFY book junket to Las Vegas trade show to look into problem, fudge purchasing system to make it look like bosses bought new company cars, hookers and ski trips

    (4) Repeat a few times

    (5) Bosses ask why their computers appear to be empty cardboard boxes

    (6) BOFH rats out company to BSA

    (7) Corporate executives go to jail and pay fines since paper trail says BOFH has been asking for licenses for non-compliant management

    (8) New boss gets hired

    (9) BOFH tells bosses they really should pay up for legal licenses since last bosses wouldn't

    Repeat the whole process.

    This the the BOFH -- if there's no embezzlement happening, and if he's not blaming it on someone else, it's a non-story. :-P

    Cheers

    PS - now, for a normal IT person with a desire to do well, your scenario might be applicable. =)

    --
    Lost at C:>. Found at C.
  8. I remember the BSA from the old shareware times.. by Spy+der+Mann · · Score: 4, Informative

    Shareware was made by programmers when the terms "open source" or "free/libre software" were unknown. There was no such thing as the Internet, or e-mail. Programmers coded for a living, and sold programs for a living. I remember the times where all PC computers were 386, ran MS-DOS, had 32MBytes of RAM. Programming was mostly considered a hobby except for large enterprises (i.e. Lotus, Borland, Microsoft, and such). Most hobbyists didn't pay for programming languages - they were pirated because they were too expensive.

    You logged into BBS's whose phone numbers you found on specialized magazines. Meetings were held with the 5 or 10 people in your area, and paid-for software was seen as a valuable treasure. Owners of that software would share it with their friends, and the original discs were treated as some kind of ancient artifact which belonged in a museum.

    That's how you learned to program back then. You pirated the language, and eventually you began producing stuff worth selling. Then you bought your first legitimate copy of the language.

    That's how things were done those days. It was rough, primitive, but fun at the same time. It was the way of the Old West.

    In the files sections, you downloaded all these utility programs (hard disk optimizers, text editors, quit-smoking organizers and such) that expired in around 30 days, and you could register them for 5 or 20 bucks. It was cheap, and reasonable.

    These small-scale programmers were defenseless against crackers and pirates, who didn't retribute them for their effort. So they turned to the BSA to help them punish the thieves who just stole their software.

    It was how business was done back then. Getting organized at a national level to make good software for free was unthinkable. You had to charge for your code, and it was OK. To program, you had to actually buy software. I remember how expensive was to purchase a copy of Borland/C++ or Turbo Pascal (with Turbo Vision!) so you could make decent programs. It may sound like heresy in the G++ times of today, but that's how it was.

    It was rough, primitive, but fun at the same time. It was the way of the Old West.

    But times have changed.

    We have GNU and the Free Software/Open Source licenses now - and software is being developed by teams of independent programmers working for a common goal: Freedom (I'm relatively new to GNU/Linux, and I was awed at the amount of Free/Libre Open Source Software for Linux). I compare my GNU/Linux box to my close friends' windows boxes - often filled with "freeware" and paid-for/cracked shareware developed in Visual Basic most of the time, and I can't even start to describe the difference. It's all chaotic and primitive in the Windows world.

    When I go to a webpage and see a Windows app for say, transferring your ipod files to your computer, or ripping/burning a CD, I see the price tag and think: "Are they kidding me? They charge for THIS STUFF?"

    The BSA and old software business models (just like the RIAA and MPAA's) are going the way of the dodo bird. They have no place in the open world of today.

  9. 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).

  10. Whew, BSA != "Boy Scouts of America" by Dahamma · · Score: 4, Funny

    "How the BSA Squeezes the Little Guys"

    For a second I thought the title of this article was very, very disturbing.

  11. Re:Sure, blame the IT guy by asuffield · · Score: 4, Interesting

    My experience with small/medium businesses has been that the CEO/CFO don't want to spend the bucks necessary to get everybody legal and the poor IT guy gets stuck having to ignore the problem or find a new job.


    About once every two months, our director comes to me saying that he wants MS Office installed on some box or other, and I quote him the current list price for it (£320, last I checked). He says that he's already got a copy. I tell him that you have to buy one copy per box. He says that he's got an old copy that didn't have that restriction. I tell him that the rule has always been there, and the only thing that's changed is that the new versions have the silly "activation" nonsense added. He says he never knew that.

    Two months later, we do this again. Bizarre.