California Companies Pay More Than $700,000 for Use of Unlicensed Software

Three California-based companies have recently settled for more than $700,000 with the Business Software Alliance (BSA) for unlicensed software use. AccentCare, Inc. of Irvine paid over $240,400; Investors Management Trust Real Estate Group, Inc., of Sherman Oaks, paid $235,000; and Global Microwave Systems, Inc. (GMS), of Carlsbad, paid $231,500.

In addition to making their payments, the companies agreed to delete any unlicensed copies, purchase replacement software and strengthen their software management practices.

Jenny Blank, senior director of legal affairs for BSA, said she hoped the settlements would raise awareness among business leaders of the importance of copyright compliance and the value of software asset management in managing businesses and IT assets.

“It’s critical that businesses treat software as they would any valuable resource and ensure that they have the required licenses for its use,” said Blank. “The BSA is working with the U.S. Small Business Administration to educate small businesses about the cost benefit of properly managing their software as well as the legal and financial consequences of software piracy. Through this partnership, the BSA will provide small businesses with the tools and resources they need to protect themselves from the risks associated with unlicensed software use.”

“As a company dedicated to improving the quality of home healthcare services, AccentCare regrets this unintentional infringement and gave BSA our cooperation and instituted corrective action as soon as it was brought to management's attention. We are equally concerned with copyright compliance and have since strengthened an already aggressive software management program," said an AccentCare Spokesperson.

California ranks as the top state in the country for settlements, totaling over $26.4 million in damages since BSA’s enforcement program began in 1993. An independent study* shows that 21 percent of software in the United States is unlicensed, and in 2006 alone, United States industry losses were over $7.2 billion as a result of software piracy.

The companies settled claims that they had the following unlicensed software on their computers:

* AccentCare, Inc. – Adobe and Microsoft

* Investors Management Trust Real Estate Group, Inc. – Adobe, Microsoft, and Symantec

* Global Microwave Systems, Inc. – Adobe, Autodesk, Microsoft, and Symantec

Businesses trying to determine whether their organization is using unlicensed software can download free software audit tools from the BSA website at www.bsaaudit.com.

BSA offers rewards of up to $1,000,000 for qualifying reports received via its hotline or online reporting form. Confidential reports can be made by visiting www.bsa.org or by calling 1-888 NO PIRACY. Reward payments are subject to eligibility requirements, the details of which are available on the Web site. Software piracy is against the law and can result in damages of up to $150,000 for each software title copied and increases the risk for security and technical complications.

*”Global Software Piracy Study,” conducted by IDC for the Business Software Alliance, May 2007 -Business Software Alliance