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Four Toronto-area companies have recently dished out a total of $95,000 to settle claims of unlicensed software on their computers.

They've also agreed to delete all unlicensed copies of software, acquire appropriate licenses and commit to stronger software management policies, according to the Business Software Alliance (BSA), the principal global copyright-enforcement watchdog for the commercial software industry.

The companies include Creative Outdoor Advertising, Menupalace.com, Sufen Ltd. and ACO Container Systems.

When it comes to software piracy, even well-managed companies don't always pay enough attention to their software licensing requirements, says one industry insider.

Michael Murphy, chairman of the BSA Canada Committee, says these types of settlements help organizations understand if they have an internal process problem – perhaps they have poor controls in place, or possibly even renegade employees.

Would a CEO know if the company's software was under-licensed?

Probably not – it typically falls to the procurement and IT departments to understand what they are buying, where it's deployed, and whether it's over-deployed or under-licensed.

“That's where most organizations get into some trouble,” said Murphy.

They know about software piracy, but usually have reactive projects – where, for example, they're trying to get a server up and running and need to install a productivity application. Somebody in IT assumes they have a license for product X or intends to buy one next week.

“It's willful, but I think it's unintentional.” Murphy says there is a difference between “willful stealers of software and unintentional stealers.”

But either way, he said, there's a need for education and awareness.

The BSA represents a range of software vendors, and its membership includes companies such as Microsoft, Symantec and Apple.

Its role is three-fold:

• To represent the interests of member companies
• Provide education and awareness around software piracy
• Investigate software theft leads and bring them to closure through actions such as settlements

According to the BSA, the piracy rate in Canada is 34 per cent, and it hasn't been dropping over the years. It's almost equivalent to the global piracy rate of 35 per cent.

“I guess it's okay to be average, but we're also a developed country,” said Murphy.

Stealing software, he said, also has far-reaching economic consequences.

It costs jobs in the IT sector and bumps up the price of software. It also means the government loses out on tax dollars and the channel community loses out on business opportunities.

According to a study by research firm IDC Canada, reducing the piracy rate in Canada by 10 per cent would add about 5,200 more jobs to the IT sector, as well as more than $700 million in tax dollars.

“The government needs to get involved in changing the laws around copyright,” said Murphy, adding that piracy is lower in the U.S. by 11 or 12 points – and penalties there are far more severe.

“The penalties go up to the C-level suite,” he said. “I think that's what gets their attention.”

Not everyone agrees with that notion, however.

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