Software Asset Management programs can help your business plan and grow

By Robert Holleyman

The Business Software Alliance (BSA) settled claims in June with one of the largest family-owned car-haul companies in the nation. The small business paid $300,000 to settle claims that it had unlicensed copies of Adobe, Microsoft, and Symantec software programs installed on its computers. Unfortunately, this story is not unique. Small businesses paid more than $11.4 million in fines to settle software copyright infringement claims in 2006 alone, according to the BSA.

Through a partnership with the U.S. Small Business Administration (SBA), the BSA is encouraging small businesses to focus on the benefits of implementing a Software Asset Management (SAM) program as a priority, rather than an afterthought.

Many small businesses may think they’re saving money by using unlicensed software, but too few realize they are jeopardizing all their hard work by not properly managing their software as assets. They may not even realize they’re using software illegally. Either way, businesses and individuals using unlicensed software face considerable legal, financial, technical, and operational risks. They are also forfeiting a valuable opportunity to cut business costs and increase efficiency.

In the fast-paced, highly competitive environment of small businesses, every decision counts. Concerns about improperly licensed or outdated software often are not a priority until it’s too late. The cleanup to rectify the various issues associated with use of unlicensed software is time-consuming and ultimately more expensive than if a business had installed licensed software in the first place. Likewise, many businesses see software as an expense rather than an asset that can greatly impact their bottom line.

Preliminary SAM programs are easy to implement and can save businesses money, enabling them to better plan for software purchases and negotiate lower prices with vendors. “Both the SBA and the BSA have a history of working with the small business community to help maximize business success,” said SBA Administrator Steven Preston.

“This exceptional partnership with the BSA will help small businesses be smart about software use, and protect themselves against the risks of unlicensed software.”

A recent survey conducted by Yankelovich Partners for the BSA found that small businesses face the greatest risk for software piracy due to their lack of established software management practices.

The legal, financial, and technical consequences of using unlicensed software are very real and can place any small business in jeopardy. By implementing SAM, your small business can make certain it has all the proper licenses for its software and is not in violation of copyright laws.

Not only is the use of improperly licensed software a dangerous practice, it is against the law. Software piracy can result in fines of up to $150,000 for each software title copied and increases the risk for security and technical complications.

A number of free information tools, including the SAM Toolkit, Guide to Software Management and Best Practices are available at www.SmartAboutSoftware.org.

Businesses trying to determine whether their organizations are using unlicensed software can download the free trial versions of software audit tools and educational materials from www.BSA.org.

Robert Holleyman is president and chief executive officer of the Business Software Alliance, the foremost organization dedicated to promoting a safe and legal digital world.