Almost every business today operates with the support of digital tools. One survey put the number of companies investing in digital technologies to transform their business at an astounding 97 percent. Conducting business in this digital age means licensing software from major publishers, such as IBM, Oracle and Microsoft, and the subsequent acknowledgement and anxiety…
One of the most common mistakes I encounter in software audits is what I call the post-effective date software buying spree. The buying spree occurs in response to a letter from a publisher or publisher’s attorneys requesting a self audit. Many clients are discouraged to learn that software purchases made after the date of the…
Businesses that receive software audit demand letters from auditing entities such as the BSA or SIIA, or from software companies like Autodesk or Microsoft, often contend they cleaned up their network after receipt of the letter and should be released from any further obligation to conduct an audit or communicate with the auditor. Audited business should…
Software audits are significant legal and financial risks for all companies. With more and more software publishers utilizing intrusive audits and other information-gathering exercises as the basis for licensing transactions and – more troublingly – as sources of revenue through compliance-enforcement actions, more of our clients are implementing detailed policies to define whether and how…
One of the tasks with which Scott & Scott’s clients most commonly request our assistance is how to conduct a software audit. While almost all companies, large and small, use software in order to conduct their business operations, many of those companies lack mature or even nascent software asset management practices. Consequently, when asked to…
Recent trends indicate that software publishers are increasingly initiating direct software audits instead of outsourcing the auditing process to entities such as the BSA | The Software Alliance (“BSA”) or Software & Information Industry Association (“SIIA”). However, the BSA and SIIA continue to actively target companies of all sizes to determine whether the company is…
BSA | The Software Alliance (BSA) is an organization that represents software companies and prosecutes alleged unlicensed use of those member companies’ software products. The BSA generally initially sends a company a letter indicating the company may be out of compliance with applicable software license agreements and demanding that the company investigate and inspect each…
Sometimes a company receives notices of audits from many publishers or trade associations at the same time. Often this is because multiple agencies have received confidential reports from the same informant. If a current or previous employee contacts both the Software & Information Industry Association (“SIIA”) and BSA|The Software Alliance (“BSA”), the company may face…
Autodesk routinely sends letters to businesses that it suspects may be using Autodesk software products without adequate licensing, both in order to confirm those suspicions as well as to address any license-compliance discrepancies. Typically under threat of a federal lawsuit for copyright infringement, Autodesk requires targeted businesses to respond to detailed questions about the Autodesk…
Software publishers are regularly auditing customers to ensure compliance with license agreements, and may initiate audits directly, or through entities such as BSA|The Software Alliance, and the Software & Information Industry Association (“SIIA”). These entities send a letter that asks the customer to conduct a full audit of its network or potentially face copyright infringement…
