Software industry advocacy group, the BSA|The Software Alliance, closed a record settlement of $200,000 with a Sydney-based engineering firm in 2016 which saw a record total amount of $589,000 in damages obtained in the year for the use of unlicensed software in Australia.
The level of use of unlicensed software has prompted BSA to issue a warning urging businesses across Australia to be vigilant of cyber crime risks.
According to BSA, a recent study by IDC it commissioned, confirmed the connection between unlicensed software and cyber crime.
And BSA says despite this, it saw the reporting of unlicensed software use in business increase 105% year-on-year in Australia, with over 120 cases reported and investigated nationally in 2016.
{loadposition peter}BSA also reports that two informants received the maximum reward of $20,000 for providing information on unlicensed software usage.
It says material provided by one of the informants led to the record settlement of $200,000 in damages with a Sydney-based engineering firm for the unlicensed use of software programs.
"While it has been a record year in many ways, unlicensed software continues to be a challenge for businesses across the country,” says Gary Gan, director of compliance programs, BSA APAC.
“By using unlicensed software, businesses are compromising their cybersecurity policies and putting their customers data at risk. It can also result in financial losses for the business, as information can be intercepted and repurposed for others’ financial gain. Not to mention the impact to the reputation of the organisation, business and its employees during any legal proceedings."
Gan says BSA’s 2016 results reflect the increased public awareness of the security and business challenges that unlicensed software poses to Australian businesses. “We strongly encourage all businesses, across all sectors to implement an effective Software Asset Management (SAM) practice. This combined with regular checks of software licenses and deployments will ensure their business is secure and avoids legal risks."
The BSA is continuing in 2017 to offer up to $20,000 to eligible recipients who disclose accurate information regarding unlawful copying or use of BSA members’ software.
Gan stresses that potential recipients must provide assistance and evidence to support the information, as they may be required by the BSA’s legal advisers in connection with any claim or legal proceedings initiated by BSA members.