With the Year 2000 threat rapidly fading, large corporations continue to be faced with potentially crippling legal and resource management costs as the information technology industry carries on its fight against copyright infringements and blatant piracy.
"Widely regarded as an ongoing threat that dwarfs many of the financial exposures that were associated with Y2K, companies that are unwittingly or deliberately infringing software copyright laws could be faced with bankruptcy if the full force of the law is brought to bear," says Paul Moses, managing director of Enterprise Connection.
Announcing the launch by Enterprise Connection of LicenseRight, a unique enterprise-level software copyright audit, procurement and management service, Moses says software licensing management not only protects an organisation against legal action, but also plays a role in reducing cost of ownership and increasing productivity.
"While all companies may strive to adhere to the highest possible standards of business ethics, many infringements occur without management knowledge due to the dynamic nature of the IT environment and the highly complex regulations relating to software licensing" he says.
Mark Reynolds chairman of the South African chapter of the Business Software Alliance, the worldwide software copyright watchdog, supports Moses` view. He points out that in South Africa the piracy rate is almost 50% and this equates to approximately R580 billion in lost revenue to the South African economy. "In the vast majority of copyright infringement cases, the corporate was not aware of the problem and had very little idea of the extent of their exposure," Say Marius Nel, who heads up the product development team "Without taking into account the financial impact of productivity losses caused by disruptive and lengthy audits that can be sprung on companies at short notice, a non-compliance rate of 10 percent in a company of 50 users running MS Office, Windows and Outlook, could result in a R150 000 copyright infringement liability," he says " and in addition there is a reward offered to individuals who report organisations who are infringing copywright laws."
Nel adds that ignorance of the law or even inadvertent copyright infringement does not reduce a liability that could run into many millions of rand within a single enterprise.
Designed to address the Microsoft technology environment and targeted at companies with 50 users or more, LicenseRight enjoys Microsoft SA`s support and the backing of a leading firm of international auditors. Through seven simple steps, LicenseRight enables the customer to know the exact status of licenses, what the most effective and optimum licensing solution would be, qualify for certification of compliance from an independent auditor, and maintain ongoing control of their licensing situation.
Nel point out that in the first of the seven steps on which LicenseRight is based, customers sign a letter of intent stating the company`s compliance intention and thereby protecting the organisation from potential liability for the period of implementation.
"The final step in LicenseRight (quarterly audits) enable customers to ensure ongoing compliance while at the same time increasing productivity through integrated software application management," he says. "Total software copyright compliance in South Africa could, conservatively, inject many billions of rand into the economy through the information industry. This income would have an immeasurably positive impact on enhancing the service, development and technical support levels currently enjoyed by users. This, in turn, would drive the global competitiveness of South Africa in the world economy," says Nel.
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