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[Graphic: Directions]
Whose Software Is It Anyway?

Max Whisler, Director of Audits, University of Washington

Would you like to bring a copy of your favorite spreadsheet package from home to use at work? How about taking a free copy of that great $499 presentation software your co-worker offered to give you? Are you wondering why you shouldn't just use the copies and save the money? After all, who is going to catch you?

The risk of getting caught is higher than you might expect, and the penalty to you and the UW can be serious. Illegally copying and using software is a crime that can result in substantial monetary fines or even imprisonment. And it is a crime that is being detected and punished, as the following press release headlines confirm:

The headlines don't reveal that, in most cases, companies and institutions pay these large fines because of the actions of a few people. A $97,000 settlement by a Beaverton, Oregon firm last November resulted from a couple of employees putting undocumented copies of software on the company's computers.

After losing billions of dollars in annual revenues, software companies are actively working to stop the pilfering of their intellectual property. In the last four years, one U.S. anti-piracy enforcement program alone recovered over $18 million for software copyright infringement.

Prohibitions and Penalties

If you illegally distribute or copy software, for your own personal use or for use by your organization, you are committing software piracy--a federal crime.

Because software is considered a form of literary expression, it is covered under Title 17 (Copyrights) of the United States Code, a compilation of general federal laws currently in force. Title 17 prohibits the reproduction or distribution of copyrighted materials without the authorization of the copyright holder. The licensed user is, however, allowed to make a single backup copy (for disaster recovery or archival purposes).

The penalties for software piracy were significantly increased in 1992, as computer and software use continued to skyrocket. An amendment to Title 18 (Crimes and Criminal Procedure) of the U.S. Code instituted criminal penalties for software piracy that include imprisonment of up to five years and fines up to $250,000.

Civil actions for copyright violations, which include software piracy, are also spelled out in Title 17 of the U.S. Code. Many software companies are now pursuing this avenue by tracking down people who illegally use their products and taking the infringers to court. Civil penalties may include up to $100,000 in statutory damages per infringement.

[Graphic: Thumbs down to sharing software.]

The Software Watchdogs

In the mid-1980s, software companies formed alliances to influence public policy, to educate software users, and to enforce laws governing software piracy. Business Software Alliance and the Software Publishers Association are two well-known groups that initiate copyright audits.

These software alliances, accompanied by federal marshals and local law enforcement officials, can enter and search the premises of any suspected copyright infringer. If this sounds like a raid, it is. And it has helped the software alliances recover millions of dollars in fines and penalties. These millions are only a drop in the bucket, however, compared to the billions of dollars in revenue that are lost each year. (A $15 billion loss in sales revenue was estimated for last year alone.)

While software companies hope to increase enforcement and influence public policy on the issue, their main goal is to increase public awareness. People seem to be unaware of what constitutes software piracy and the laws pertaining to software infringement.

Harsh criminal and civil penalties are not the only risks involved with software piracy. Personal and organizational hazards associated with using a pirated product include:

Evaluation and Self-Audit

The question you should be asking yourself at this point is this: Are my department and I in compliance with licensing agreements for all of the software we are using? This may not be an easy question to answer because licensing agreements are not always straightforward.

Your answers to the following could help you determine whether you and your department are abiding by the terms of the software licenses:

There are tools to help you manage software at the University of Washington. Software audit programs are available to departments that would like to conduct "self-audits" of software maintained in their departmental computers. UW Internal Audit can be reached at 543-4028 to answer questions or to advise you on setting up a self-audit program.

Before You Buy

If you are thinking about purchasing software, consider the following tips:

If you have questions, don't hesitate to call the software publisher.

For software you obtain through a site or group licensing program, be sure to keep a photocopy of the registration form as your proof of purchase. If registration is not required, make sure the license terms are provided with the software and print a copy for your records.

To obtain the authorized software dealer offering the best price to the UW, get in touch with the appropriate University Purchasing contact:

The Software Publishers Association and Business Software Alliance provide further information on this topic on their World Wide Web sites atwww.spa.org/ and www.bsa.org/

Remember, the liabilities for software piracy rest with you, the user. Take the time to review the software on your computer to make sure you have the required licensing agreements.

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University of Washington Computing & Communications
Windows on Computing, No. 20, Autumn 1997
newsltr@cac.washington.edu