The Business Software Alliance...questions

[killmeplease]

Throughout the years our company has hired some IT stuff out and had some done "in-house". I install some software, others have in the past and some of the software has been supplied by us to be installed by others outside the company. Admittadly, it's been a bit "piece-meal". I am the VP. I've only specified it and maintained the apps for only a short period of time.

I've heard of companies being "audited" by the BSA and fined for license non-compliancy, so I decided to do a "self-audit". I have found our company to be TERRIBLY non-compliant. We are a small company with 4 locations (20 miles or so, apart) and 11 computers total. If I were to put a number to it, I'd say we were 50%-50% license compliant/non-compliant (OS and app combined total). I now know this and have a few questions.

I am going to work to get compliant. But with 11 computers, it will take a couple months by myself. I have to do all this alone and the computers are normally a small part of my duties. I want to reformat EVERYTHING and just start fresh.

1. Can an organization like the BSA just walk in and audit a company?
2. Can they if the software hasn't been registered?
3. What is the chances of them doing so. It was a radio ad that said they were in our town that prompted my self-audit.
4. Should I contact them and explain my plan. I went to their web site and they have a month-long (5/1-5/30) "grace period" to make the changes. I will not make that time-period.

As a matter of principal, I think businesses should pay for the stuff they use (I'm not that rigid when it comes to individuals ). I just don't want to be exposed to penalties that were a product of no motivation to defraud.

Any advice? Has anybody been through such an audit?

 

[manly]

From what I've read:

1. As ridiculous as their operations seem to me and many sane people, I've read that they operate within our legal system. Basically, if they have credible evidence that you're not 100% license compliant, they can get a court order and get U.S. marshalls to harass you (no joke, it's happened). Of course they aren't a police force, and can't just legally rush into your business unsolicited any more than I can.

2. Registration apparently is irrelevant. What you need are not only the original licenses (e.g. certificates), but receipts are strongly recommended as well.

3. Unlikely if you're a small business, unless someone (i.e disgruntled ex-employee) rats you out. Even then, as you're a small organization, I'd suspect they're more focused on shaking down schools (no joke), municipalities and Fortune 1000 firms.

4. No reason to contact them at all. In the unlikely event they contact you, get your lawyers involved and don't roll over to outrageous demands.

Just get up to 100% compliance (if at all possible), and you have no problem. I have no first-hand knowledge, but I believe your situation is typical of many small businesses. Fortunately, you're aware of the problem and can take steps to correct them. IMHO, it's virtually impossible for large firms or organizations to be 100% compliant unless they install and run expensive, annoying license and auditing services.

Essentially what's going on is MS' revenue growth has stalled so they're desperately trying to get larger organizations to sign expensive maintenance-style site licenses. One of the few ways of convincing people to go along with this plan is through intimidation by the BSA.

 

[killmeplease]

Thanks for the advice.

One thing that is a bit troubling is that we have very few liceses and the invoices are going to be hard to find. Luckily most all purchases are done via credit card. Our card bank is excellent. They send itemized statements quarterly with all item listed.

I'm a bit paranoid about such things. It seems that no matter how hard we try, it's impossible to stay in full compliance with EVERY DAMN REGULATION we have to operate under. What adds to such paranoia is the frequency of the friggin' audits of all kinds, that we recieve. It seems I have to buy a friggin' desk and chair for all the a-holes that have become a fixture in all small business offices.

In the last year we have had an audit on.............sales tax, corperate tax, property tax, 401K and the Federal hours and wages nazis. All seem to come away with a small pound of flesh that wasn't a product of any real wrong-doing. It was all small errors or lack of paperwork. The saddest part is that the real errors wouldn't pay for the auditor's time. It is the penalties that they extort, that do the real damage. I wouldn't care so much if the problems were simply corrected, even if we paid for the dick-head's time.

Maybe all small businesses should just shut their doors.