Projects: Networks/Storage - Baseline
Home arrow Projects: Networks/Storage arrow The Price of Not Being Vigilant: Software Licensing Costs















Renew Your Subscription

Projects: Networks/Storage



The Price of Not Being Vigilant: Software Licensing Costs



By Baselinemag
2002-09-03
Article Views: 5622
Article Rating:starstarstarstarstar / 1

Use our online calculator to find out what using illegal software could really end up costing you.

Rate This Article:
Poor Best
Add This Article To:
The example here shows how a company running one application on 520 PCs could be forced to pay more than $173,000 in fines and penalties if it is unwittingly using just 20 illegal copies of the software. Find out what unauthorized software could wind up costing you using the tool below or download our Excel spreadsheet.

Directions: Enter your own numbers as prompted below. Do not attempt to fill in the fields next to a blue or orange field; these will be automatically filled in once you have entered all the required information.


Paying for a Self-Audit Makes Sense...
Companies that take an inventory of their electronic assets often learn they have unauthorized copies of software kicking around. 		YOUR COSTS EXAMPLE
Application
The most common applications used illegally are from Microsoft, Symantec, Adobe, Macromedia and Network Associates, according to watchdog groups.

Corel Word Perfect Office 2002
Total number of copies found

500
Number of illegal copies

 20
Cost per title (MSRP)

$ $389
Licenses for illegal copies

 $$7,780
Audit costs
Audit costs reflect a $50/hour cost for a technician to inspect three PCs or laptops. In this case, 175 technician-hours are needed to complete the audit.

$ $8,750
Asset management software
Enterprise-class asset management software, from companies such as Computer Associates and Peregrine Systems, keeps track of software licenses. These applications can cost up to $35 per seat, including setup fees.

 $ $18,375
TOTAL AUDIT AND REPAIR COSTS

 $ $34,905
...To Keep the Software Police — and Major Fines — Away
When an outside group such as the Software & Information Industry Association steps in, the fines can add up. 		   
Fine (2 to 4 times MSRP)
Please enter a value between 2 and 4.

 3
Fines can reach two to four times a manufacturer's suggested retail price (MSRP). This example assumes a fine of three times the MSRP.

$ $23,340
Potential legal penalties
If a company refuses an audit by a watchdog group like the Business Software Alliance or the Software & Information Industry Association, that group can sue for copyright infringement and seek damages in civil court. The potential legal penalty for each unauthorized software title is $150,000.

$ $150,000
Criminal penalties
In extreme cases, federal authorities can seek criminal penalties, including a fine of up to $250,000 and a prison sentence of five years.

 $ $0
TOTAL FINES AND PENALTIES

 $ $173,340
   
THE BOTTOM LINE
Never mind the bad publicity; using software illegally can be costly. Here, the $34,905 is money that has to be spent; the $173,340 isn't.

   
Audit and repair costs

 $ $34,905
Fines and penalties

 $ $173,340
TOTAL

 $ $208,245





 
 
>>> More Projects: Networks/Storage Articles          >>> More By Baselinemag
 



Sponsored Links
  • Get up and running in as quickly as 30 days with BI. Learn how today.

  • FREE Securing Smartphones & Tablets for Dummies Book from Sophos
  • 5 New Technologies That Will Change Enterprise ITAdvertisement
  • Build an IT Infrastructure That Delivers the Future
     
    		•
     
    FEATURED SPONSORED ARTICLES
    FEATURED SPONSORED VIDEOS

     

    Related Content

    Articles Labs/How-To Multimedia


    LATEST STORIES
    - Five Ways to Put Mobile Technology to Work
    - Ten iPhone Apps that Will Save You Money
    - Mobility Transforms the Customer Relationshi...
    - BPM Keeps Pace With Business Changes
    - Speech Recognition Speaks To Businesses


     

     

    Advertisement
    rss graphic
           Baseline Newsletters

    Baseline:  

    Issue Index | Contact Us | About | Magazine Customer Service | Navigation Guide

    Quick Links:  

    Project Planners | Enterprise Resource Planning | Network and Online Security | Data Analysis | Process Management | Storage Devices| Link to Us

    Ziff Davis Enterprise Home | Contact Us | Advertise | Link to Us | Reprints | Magazine Subscriptions | Newsletters
    Tech RSS Feeds | White Papers | Tech Podcasts | Tech Video | VARs | System Builder

    Baseline | Careers | Channel Insider | CIO Insight | DesktopLinux | DeviceForge | DevSource | eSeminars |
    eWEEK | Enterprise Network Security | LinuxDevices | Linux Watch | Microsoft Watch | Mid-market | Networking | PDF Zone |
    Publish | Security IT Hub | Strategic Partner | TechDirect | Technology White Papers | Windows for Devices

    Developer Shed | Dev Shed | ASP Free | Dev Articles | Dev Hardware | SEO Chat | Tutorialized | Scripts |
    Code Walkers | Web Hosters | Dev Mechanic | Dev Archives | igrep

    Use of this site is governed by our Terms of Use and Privacy Policy

    Copyright ©1996-2012 Ziff Davis Enterprise Holdings Inc. All Rights Reserved. eWEEK and Spencer F. Katt are trademarks of Ziff Davis Enterprise Holdings, Inc. Reproduction in whole or in part in any form or medium without express written permission of Ziff Davis Enterprise Inc. is prohibited.