Software audits are a means for software publishers to enforce and regulate use of their copyrighted software, and publishers regularly outsource enforcement of their copyrights to law firms or entities such as the BSA| The Software Alliance (“BSA”) or Software & Information Industry Association (“SIIA”). The BSA and SIIA often send a letter to targets…
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…
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…
I am a partner in Scott & Scott, LLP a firm that focuses on technology law matters in Southlake, Texas. We represent companies in software audit matters initiated by the major publishers including Microsoft, Oracle, IBM, Autodesk and many others. My team has combined experience of over 50 years defending software audits and I spend…
Software publishers have increasingly identified software audits as potential revenue-generating exercises, which has led to a rise in the number of companies targeted. Small, medium, and large companies all need to be aware that a software audit can result in extensive time and unbudgeted financial expenditures. Software audits may be initiated by publishers or through…
The Covid-19 pandemic shifted entire non-essential industries to a remote workforce, leaving companies scrambling to set up employees to work from home. A study in June 2020 by Pricewaterhouse Coopers determined that nearly 70% of office workers were working remotely. While some employees were allowed to simply transfer their work computers to their home office,…
