Enterprise-level software solutions often are very complex products requiring a level of expertise that may be outside the experience or skill sets of generalist IT teams. Many businesses therefore rely on the services of independent software vendors and consultants to evaluate their needs for particular solutions, to procure the required licensing, and to deploy and…
In recent years, many software publishers began using software audits as a means to increase revenue by penalizing customers for perceived compliance issues. Software publishers often conduct direct audits, or audit through companies such as the BSA | The Software Alliance (“BSA”), or the Software & Information Industry Association (“SIIA”). Although many software users take…
Agreements often contain clauses allowing the parties to review books and records, “Books and Records” clauses. These are often boilerplate clauses included in agreements without much consideration from the contracting parties. When a Books and Records clause is used in a software agreement without a software audit clause, it can lead to serious consequences. It…
It has been said that software is the new oil. It fuels the information revolution. And in this metaphor, software audits are the meters that measure the flow—and extract maximum revenue for software makers. The auditors arrive on your company doorstep to “true up” your license and make sure you’re paying for all the software…
While the over-arching concept underlying a software audit initiated by a publisher like Microsoft or IBM is the same as that in an audit initiated by the BSA | The Software Alliance or the Software & Information Industry Association (SIIA) – a comparison of software entitlements to software deployments in an effort to identify any…
In the software licensing world, all audits are not created equal. On one hand are the “true,” contractual audits. Here, the applicable license agreement gives the software publisher the right, usually upon notice and sometimes limited in frequency or scope, to demand access to the systems where its products are installed or a report of…
The BSA | The Software Alliance (“the BSA”) investigates claims of software copyright infringement behalf of its member software publishers to determine whether any companies end users have unlicensed software installed in violation of The Copyright Act. The BSA has been granted a power of attorney to pursue claims relating to copyright infringement on behalf…
Many businesses expend far too little effort in securing appropriate non-disclosure agreements during software audits. Some businesses even wholly overlook NDAs during the audit process, believing that they have no leverage to demand reasonable protections for the information that the auditors will ask them to provide. This is a mistake that can cost a company…
Software publishers, acting alone, or through a proxy such as the Business Software Alliance (“BSA”) or Software & Information Industry Association (“SIIA”), regularly audit customers or potential customers to ensure license compliance and deter against copyright infringement. For mid-sized or larger companies that employ an in-house or external IT resource to manage software purchases and…
Software publishers and entities like the BSA| The Software Alliance and the SIIA regularly audit companies to investigate copyright infringement claims. These entities seek monetary penalties if any infringement is discovered, and in the majority of cases, reach an out of court settlement for an agreed upon sum. Sometimes, settlement negotiations break down and one…
