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Software Piracy: BSA and SIIA's Million-Dollar Reward Programs

Strategic Insights

— 1 min read

The Business Software Alliance (BSA) and the Software & Information Industry Association (SIIA) have launched million-dollar reward programs, enticing disgruntled employees to report alleged software piracy. These programs target small and medium-sized businesses, forcing them to provide audit details of their computer systems under the threat of litigation. Members of the BSA and SIIA, including prominent software publishers like Microsoft and Adobe, give the associations the power of attorney to represent them in software audit matters, and they retain all revenue received from settlements, mainly from small to medium-sized companies.

Key Takeaways:

  • The BSA and SIIA receive an average of 2500 reports annually, with the majority coming from current or former employees.
  • The SIIA reports that they had the highest payout to informants in 2009 since they started the program in 2003.
  • Robert J. Scott, a lawyer who has represented over 135 clients in software audit defense cases, recommends that businesses adopt a corporate policy on software compliance and have tighter restrictions on desktop users.
  • Companies should keep all receipts from software purchases indefinitely and purchase only from authorized dealers.
  • Software license compliance is a legal not just an IT issue, and businesses should seek experienced legal counsel if they receive a letter from the associations or one of their member software companies.
  • Using vendor-provided free SAM tools is not recommended, as clients have reported feeling that the person making the report may have loaded pirated software intentionally.

Statistics:

  • The BSA and SIIA receive an average of 2500 reports annually.
  • The majority of reports come from current or former employees.
  • The SIIA reports that they had the highest payout to informants in 2009 since they started the program in 2003.
  • The BSA has represented over 135 law firms in software audit defense cases.

Sources:

  • (Source 1) Robert J. Scott, Scott & Scott, LLP, at http://www.scottandscottllp.com
  • (Source 2) Vocus, March 1, 2010, at http://www.prweb.com/releases/2010/03/prweb3659834.htm

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