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Recession Turning Software Auditors Into Greedy Traffic Cops

judgecorp writes "As the recession bites, software auditors are cracking down, and some are simply exploiting loopholes and technicalities to meet their targets, according to analyst Forrester. They may be within their rights, but they aren't endearing themselves to users; Steve Ballmer faced weary customers in London last year, and admitted Windows licenses have deliberate 'gotchas.'"

15 of 307 comments (clear)

  1. What rights? by SuperBanana · · Score: 5, Informative

    They may be within their rights,

    What right would that be, exactly? If they're not law enforcement, and they don't have a court order, they have zero "rights." Yes, even if they show up wearing fancy raid jackets to try and look like law enforcement.

    I've posted this several times before. If the BSA or any of these other vultures come knocking, they have ABSOLUTELY NO RIGHT TO DO ANYTHING, SEE ANYTHING, TALK TO ANYONE, etc WITHOUT A COURT ORDER. If they have one, that means you're already in the process of being sued, and the first person you should call is your lawyer, and you should ONLY do EXACTLY what the court order requires you to.

    Here's the Superbanana Super Guide To BSA Bullshit Shutdown.

    • Your receptionist and anyone else that is near the front door should keep them as far out of the building as possible, at a minimum the reception area. Block their path. If they even so much as poke your check with a finger, call the police immediately. Maybe even call the police, preemptively ("Hi, 911? Some people in raid jackets showed up at our business, they're not police, but they seem to be pretending like they are. There's a lot of them, we think they might be trying to rob us or something.") At a company where I worked, we had a silent alarm button at the reception desk.
    • Send someone to find the most senior person in the company, preferably an officer (CEO, CFO, President, etc.) They do all the talking. That talking should consist almost entirely of "Who are you" (where your attorney will send a very nasty letter to). "Do you have a court order?" (No.) "Get off our property, you're trespassing."
    • If the "auditors" refuse to leave, get physical, or try to connect to the network or start poking around, call the police immediately.

    If they don't have a court order, don't let them see anything, touch anything, install anything, connect anything. Don't answer any questions. The only information you should give them is your attorney's phone number.

    1. Re:What rights? by LostCluster · · Score: 3, Informative

      Here's where the nonsense starts...

      You consent to the audits if you have any volume licensing at all. You also gave up your right to sue and have consented to going to arbitration. In that, BSA claiming they have a report you licensed X and you are using Y copies (from the upset employee you fired a month ago) and unless you present a defense, you lose. So, you've got to let the auditors do their count of computers... You can slow them down and get into compliance in the meantime, but you can't keep them

    2. Re:What rights? by pclminion · · Score: 4, Informative

      Giving up your right to sue doesn't mean you can't sue. I've seen it done. Party A and Party B enter an arbitration agreement. Party A believes Party B has failed to fulfil some contractual obligation. Party B disagrees, finds fault with Party A, and sues Party A. In court, party A enters the original contract into evidence. Party B disputes it. A hearing is scheduled. A question of validity of the contract is raised. Party A then sues Party B for breach of contract. The whole thing is tied up in the courts for 17 months. The issue is resolved when everybody gets so fucking tired of it that they just walk away.

      You say I gave up my right to sue? How are you going to prove it? I guess you'll have to... TAKE ME TO COURT.

    3. Re:What rights? by LostCluster · · Score: 4, Informative

      They show the clickwrap contract, and then you've got to prove the Microsoft EULA is invalid. Good luck with that.

  2. Re:I just don't even open the door by Anonymous Coward · · Score: 5, Informative

    I don't use ANY proprietary software at my company.

    This is great for anyone who can get free software to do their bidding. For everyone else, this really pushes free software into the limelight in a good way (e.g. - we'll use it until we see the value and THEN we'll pay for the "enterprise" support).

    Adobe products apparently "phone home". My former employer was just approached by Adobe about some unlicensed copies on the network (the users have full admin rights, per most Windows environments). They settled out of court for $2 million (USD) but immediately dropped Adobe from the suite in favor of free software.

    Kudos to Adobe for screwing themselves so bad.

  3. Re:Easy solution. by Anonymous Coward · · Score: 5, Informative

    4. REPORTING AND AUDIT. If Customer wishes to increase the number of Installed System, then Customer will purchase from Red Hat additional Services for each additional Installed System. During the term of this Agreement and for one (1) year thereafter, Customer expressly grants to Red Hat the right to audit Customer's facilities and records from time to time in order to verify Customer's compliance with the terms and conditions of this Agreement. Any such audit shall only take place during Customer's normal business hours and upon no less than ten (10) days prior written notice from Red Hat. Red Hat shall conduct no more than one such audit in any twelve-month period except for the express purpose of assuring compliance by Customer where non-compliance has been established in a prior audit. Red Hat shall give Customer written notice of any non-compliance, and if a payment deficiency exists, then Customer shall have fifteen (15) days from the date of such notice to make payment to Red Hat for any payment deficiency. The amount of the payment deficiency will be determined by multiplying the number of underreported Installed Systems or Services by the annual fee for such item. If Customer is found to have underreported the number of Installed Systems or amount of Services by more than five percent (5%), Customer shall, in addition to the annual fee for such item, pay a penalty equal to twenty percent (20%) of the underreported fees.

  4. Re:Easy solution. by ozmanjusri · · Score: 5, Informative
    (1) Outsource your work to a very large country which dosen't care about IP laws.

    Shame you got modded troll. This is pretty insightful, though it should say "Outsource your work to a country which has lax tax laws."

    One of the most unintentionally hilarious points in TFA is Steve Ballmer's comment;

    Users such as the Government of the Isle of Man are already saving up to £120 per year using the beta version of Windows 7

    The Isle of Man is largely an offshore tax haven with around 1,350 desktop computers for the entire government. If all of the promised "£100 per desktop per year" savings materialise, the IoM government will have saved a grand total of £135,000 by using beta software. So why would Ballmer be so interested in such a small deployment?

    Accounts for Microsoft Ireland Research, an Irish subsidiary of the global software giant, show that the company paid just €460,000 in tax, on profits of more than €1.2 billion last year.
    http://www.taxresearch.org.uk/Blog/category/microsoft/

    That's 0.04% tax.

    Still wondering why Microsoft is heavily involved in an offshore tax haven?

    Even funnier, the IoM Government was an early supporter of Windows Vista, and claimed savings switching to that OS. Though only completing their rollout in October 2009, they were just in time to save even more money changing to Windows 7. If they keep making savings upgrading like that, pretty soon Microsoft'll be paying them for installing Windows.

    --
    "I've got more toys than Teruhisa Kitahara."
  5. Re:Why would you even let them in the door? by Gerzel · · Score: 3, Informative

    You are forced to have the auditors by agreeing to the licenses to use certain software products.

  6. Re:Easy solution. by Anonymous Coward · · Score: 3, Informative

    I don't know about where you work, but where I am they dropped all new software purchases & maintenance for software they owned 12 months ago.

    But they aren't planning on moving to open source. They purchased the software, they aren't hiring anyone, and so they don't need to do anything.

    Long live Office 2000!

  7. Roasting chestnuts by symbolset · · Score: 5, Informative

    Here's a nice old story about a Microsoft software user that got audited, sued, fined and dragged through the press. Apparently they sell guitars. Of course a loss for somebody is naturally a win for somebody else.

    --
    Help stamp out iliturcy.
  8. Re:Boy, that's TV Law... by ColdWetDog · · Score: 4, Informative

    No, I don't think you understand HIPAA very well. It DOES allow for a number of disclosures without patient consent:

    To law enforcement

    To treating physicians and other clinicians, for public health activities, for health oversight purposes, to protect against personal and material harm

    Even for marketing

    And a raft of others.

    This is not the bogeyman you are looking for.

    --
    Faster! Faster! Faster would be better!
  9. Re:Easy solution. by bendodge · · Score: 3, Informative

    Microsoft hates that mentality. Therefore, they are moving to a subscription model with Office 2010. But they've got a tough road converting the huge base of Office 2000, XP, 2003, 2007 people who have a license into infinity.

    --
    The government can't save you.
  10. Re:Easy solution. by Anonymous Coward · · Score: 4, Informative

    I'm posting AC because I do IT work for IOM gov. Your post is full of misinformation.

    First of all it's disingenuous to represent the Isle of Man as a "tax haven". It's one of the few offshore jurisdictions that aren't on the US blacklist of tax havens and has tax information sharing agreements with anyone that matters. We don't have "lax tax laws". We're one of the only 3 jurisdictions whitelisted by the UK to conduct online gambling precisely because we have good regulation and anti-money laundering protection. And the overall level of tax burned on the IOM is about the same as the US.

    Second. There are about 5000 desktop and laptop computers. Now you might not think such small numbers don't matter, but it's not the numbers, it's where they are. The IOM has everything you'd find in your average government, from the executive offices right down to sewage treatment, water utilities, power generation, hospitals, schools, roads, etc, etc. Only it's much smaller. So why does MS care? Because they can deploy their products across an entire and extremely varied organisation, and capture that in only 5000 machines.

    As for the Vista/Windows 7 thing. The software is licenced through microsoft's rental scheme, so whether they stay on Windows XP or Windows 7 doesn't matter, they pay the same. The claimed savings were down to lower maintenance costs etc. Also after the deployment of Vista, the upgrade to Windows 7 (like all their application deployments) is through a system called SMS. It's deployed over the network, overnight and is completed with one reboot. No user settings are lost as they're all on network profiles.

    I don't like MS as much as the next slashdotter, but you're talking about things you don't know. Stop.

  11. Re:Easy solution. by ozmanjusri · · Score: 3, Informative
    The US blacklist isn't the only definition of tax haven, and the IoM only avoided the blacklist by signing more tax information exchange agreements than other offshore havens.

    From Wiki;

    The Isle of Man does not charge corporation tax, capital gains tax, inheritance tax or wealth tax. Personal income tax is levied at 10–18% on the worldwide income of Isle of Man residents, up to a maximum tax liability of £100,000. Banking income tax is levied on the profits of Isle of Man based banks at 10% and income from the rent of Isle of Man property is levied at the same rate.

    --
    "I've got more toys than Teruhisa Kitahara."
  12. Re:I just don't even open the door by GNUALMAFUERTE · · Score: 3, Informative

    Agreed about the ladies ;)

    Let me tell you something, Argentina is far away from being heaven (Specially since Heaven doesn't existe :D ). We have a lot of problems, the same corrupt governments we've always had, and a lot of things to fix as a country. But, regardless of all that, Argentina is a beautiful land, with great potential. We just have to start doing certain things better :).

    Regarding immigrating here, the constitution says "Para nosotros, nuestra posteridad, y para todos los hombres del mundo que quieran habitar el suelo Argentino"

    And, from our immigration law:

    DE LOS DERECHOS Y LIBERTADES DE LOS EXTRANJEROS

    ARTICULO 4 - El derecho a la migración es esencial e inalienable de la persona y la República Argentina lo garantiza sobre la base de los principios de igualdad y universalidad.

    You can read the whole text here:
    http://www.gema.com.ar/ley25871.html

    As you can see, this is no the United States. Racism is not an issue here, and everyone is welcome.

    Argentina provides free health care and education of all degrees to any human being in our country, regardless of citizenship.

    The only reason while you might be denied citizenship, is if you have ... "unfinished business" with the law in your country of origin.

    So, if that's not the case, then welcome to Argentina ;).

    --
    WTF am I doing replying to an AC at 5 A.M on a Friday night?