Excerpted from Wisconsin Employment Law Letter and written by attorneys at the law firm of Axley Brynelson, LLP


Ignorance of pirated software on company-owned computer networks isn't bliss. Given the widespread use of the Internet, your employees may be downloading unlicensed, pirated software without your knowledge, and they may not even realize that what they're doing is illegal

Although you may find it burdensome and costly to monitor what your employees are downloading, it's imperative to put controls in place to protect yourself from the liability of having pirated software on your computer network.


Looting the Internet's treasures

As litigation over software piracy claims increases, you should be aware of the consequences of using pirated software. Groups like the Business Software Alliance (BSA) that work with companies like Microsoft have initiated reward programs offering up to $1 million to employees who "turn in" their employers for software piracy.

Being in possession of pirated software can lead to both civil and criminal charges resulting in copyright infringement fines of up to $150,000 per violation and even prison time for company executives. In addition to the legal ramifications, pirated software can expose your computer network to viruses and other corruption.

Consider taking the following steps to prevent the introduction of pirated software onto your network:

* Retain a knowledgeable IT person or department to ensure compliance with software-licensing requirements and to formalize your software policies.
* Distribute written software policies to all employees, and set forth substantial consequences for downloading unauthorized software.
* Have your IT personnel monitor employees' Internet use, and use filtering software to block workers' access to specific content and websites.
* Restrict employees' ability to download to the network so that only designated people like IT personnel have the right to purchase, install, or download software.
* Audit your computer network periodically to ensure that all software is properly licensed. Immediately delete any unlicensed software.
* Maintain detailed records for all software that's purchased so if a question ever arises, you can provide the proper license information.


More information, to boot!

For more information on how to protect your company from liability for software piracy, visit the BSA website at www.bsa.org. The website offers many helpful tools, including free trials of software audit programs, sample policies and memos to distribute to employees, antipiracy posters to hang in the workplace, and tips on how to prevent software piracy.

In addition, the Software & Information Industry Association website, located at www.siia.net/piracy, offers detailed information on what exactly constitutes piracy, the different types of liability involved with piracy, and the applicable laws governing software use.



Copyright 2007 M. Lee Smith Publishers LLC. WISCONSIN EMPLOYMENT LAW LETTER provides information about current employment law issues under Wisconsin and federal law. It is designed to alert you to legal issues and does not constitute legal advice. Questions about your company's problems and issues should be presented to the employment law attorney of your choice.