Procurement · 18 April 2017

Unlicensed software continues to cost small business owners

Unlicensed software
Aside from legal costs, unlicensed software could also put IT systems at risks from harmful malware
Copyright infringement from using unlicensed software cost small UK business owners over 900, 000 in 2016, according to new research.

Figures from the Business Software Alliance (BSA), a lobby group representing the interests of the software industry, revealed that legislation and damages costs for small firms rose from 770, 192 in 2015 to 914, 587 in 2016.

The continued use of unlicensed software among small business owners goes against the national rate in Britain, which has dropped two per cent to 22 per cent since 2014.

Business owners in the sales and distribution industries were found to be the worst offenders in the past three years, with engineering, manufacturing and architecture firms closely following.

As part of a wider campaign to raise awareness of the risks of counterfeit IT products, BSA emphasised the link between unlicensed software and malware, with owners putting their own IT operations at risk.

Commenting on the figures, Sarah Coombes, managing director for BSA Europe and Middle East, said the growing costs of unlicensed software to small business owners was concerning.

despite the rate of unlicensed software in the UK dropping, it’s clear some businesses are continuing to ignore copyright law, leading to greater settlements and legalisation costs, she added.

Coombes pointed out that the real cost of unlicensed software exceeded the stated figure, with legal fees and indirect expenses such as business disruption adding to the bill.

we encourage all businesses to ensure they have stringent software asset management (SAM) practices in place. Implementing even baseline SAM tools and processes, such as regular inventories and having a software use policy for employees, can have a huge benefit, Coombes advised.


 
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ABOUT THE EXPERT

Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.

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