RISK MANAGEMENT

Penalties

CEO & Directors actions

Business Software Association of Australia

Further information

Software License Management

The following information is sourced from the Business Software of Australia web site.
The Copyright Act - and how you are at risk

Under the Copyright Act, it is illegal:

  1. To copy software or accompanying documentation (eg. manuals), without the permission of the copyright owner

  2. To knowingly distribute unauthorised software

  3. To run a copyrighted software program on two or more computers simultaneously unless the licence agreement specifically allow this (i.e. a multi-user or site licence)

  4. For companies to authorise, encourage, allow, compel or request employees to make, use or distribute illegal software copies

  5. To make unauthorised copies of software because a superior, colleague or friend requests or compels it

  6. To import software into Australia for commercial purposes without the permission of the copyright owner

  7. To distribute software which has been imported into Australia without permission of the copyright owner

  8. To withhold knowledge that the criminal law against unauthorised software copying is being breached

  9. To loan software so that a copy can be made, or to copy software while it is on loan

Penalties for Illegal Software

Infringement of copyright may constitute a criminal offence, exposing individuals and companies to substantial penalties and in the case of individuals, even imprisonment. Fines up to $93,500 (in the case of an individual) and $467,500 (in the case of a company) can be imposed under The Australian Copyright Act 1968 for criminal cases of copyright infringement. An individual may also be sentenced to a maximum of five years imprisonment for each offence. Both companies and individuals can be liable for unlimited amounts in damages under civil legal action.

Civil Damages

Alternatively or in addition, users of illegal software may be subject to civil legal action resulting in awards of damages and court costs of an unlimited amount. In Australia, several civil cases brought through the Business Software Association of Australia (BSAA) have resulted in damages settlements of $100,000 or more.

Personal Liability

Under Australian law, company directors may be held liable for illegal copying or use of software in their company, as well as individuals directly involved in illegal copying.

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CEO's & Directors action to reduce risk

The following checklist will assist to ensure your software is legal and that you avoid the risks associated with illegal software;

  1. Ensure senior management awareness & commitment.

  2. Understand licence agreements.

  3. Have signed Employee Compliance Statements.

  4. Educate users (eg staff guidelines, notices, etc).

  5. Have a Software Code of Ethics.

  6. Establish a Software Register.

  7. Keep original disks locked away.

  8. Appoint a Software Auditor.

  9. Conduct unannounced spot checks.

  10. Conduct occasional software audits.

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Business Software Alliance Actions

Does BSA raid premises?

Yes, the BSA can be granted an Anton Piller order that is similar to a search and seizure warrant. If a Vendor has reasonable grounds for believing that illegal software copying is occurring within an organisation and that evidence may be destroyed if notice is given, then the Vendor may apply to the Court for an Anton Piller Order.
This is an order that requires persons in charge of the premises to allow the Vendor and representatives of the Vendor to enter company property for the purpose of searching for and seizing illegal copies of software, manuals and other documents that indicate that software theft has occurred.
For obvious reasons, no advance notice is given of when the Vendor's representatives and solicitors arrive at the premises for the purpose of carrying out the search.
Material seized on the search is used as evidence in the proceedings for infringement of copyright.

What are the terms for the BSA's $5000 reward?

The BSA reward applies to information leading to a successful copyright infringement action in relation to the use of unlicensed software, but does not apply to information regarding software dealers or distributors. The reward payment is subject to conditions that must be signed and accepted by the informant. The informant must agree to give evidence on the BSAA's behalf that usually involves signing an affidavit. To be eligible for the reward BSA cannot guarantee confidentiality of the informants� identity, which could be disclosed during a court action.

Further information

Further information, including draft policies, employee undertakings, newsletter and memo formats can be found at the following web site. :- http://www.bsa.org

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