May 24, 2006, 9:54 AM — Listen to the column "Business Software Alliance - Update #1", or visit our Podcast Center to hear more by James Gaskin.
We discussed licensing lamentations last month, and made a brief mention of the BSA (Business Software Alliance). I'm digging a little deeper into their increasingly hardnose tactics, so keep an eye on my Small Business Technology column over at Network World for deeper examinations of BSA business practices and the rising storm of controversy. Check out BSA Defense for more details.
After talking with the Director of Enforcement (Jenny Blank) for the BSA, I want to pass on the good and bad news. OK, the bad and partially good news, since the odds are almost completely in the BSA's favor.
The BSA has always relied most heavily on tips from "disgruntled former employees" as the stereotype goes. Ms. Blank didn't argue with that characterization, and used the term herself. Of course, a disgruntled current employee can cause untold amounts of grief, because the BSA refuses to identify the tipsters.
Worse, the BSA refuses to admit what they consider to be credible enough evidence to launch an investigation. Do the snitches need physical evidence? No comment. Do they need dates and times of software piracy activity? No comment.
Going from worse to disastrous, lawyers defending companies in BSA audits swear that some tipsters are the very employees tasked to track software licenses. The employee destroys the evidence, calls the BSA, and collects a huge reward. BSA folks refuse to discuss any details, but say that doesn't happen. But if they don't discuss details, how do we know?
The snitch award money was zero dollars last year. About eight months ago the BSA started offering $50,000 for tips that met their criteria (whatever that means, since they won't give details). Now the snitch awards are up to $200,000. Yes, 200 large for information about your company. The BSA didn't say how many tips they get, but they have between 600 and 700 investigations active all the time. Dangling that big a reward carrot in front of people should guarantee tips and investigations for decades.
What proof do you have your software is completely legal? Invoices from the vendor, packing slips, and volume license agreements with an official start date. Of course, the quality of proof depends on the software publisher, who sets the license terms. How many companies escape a software audit without a fine? Far fewer than 10 percent, according to the BSA. Beware.
