Keep employees working with software that works

When running a business, unruly software can set back both productivity and profitability. But by using "genuine" software you can sidestep any risks.

Your software should help your employees get their work done well and get it done fast.

But programs that cause your computers to freeze, that can't be upgraded, or are ineligible for technical support do just the opposite. They frustrate your employees and waste their time.

One way you can dodge the headaches brought on by problem-causing programs is to avoid the use of illegal software. Illegal or "pirated" software takes several forms. It can be software that is shared or installed on more computers than it should be. It is also counterfeit software disks. Counterfeiting is the large-scale duplication and distribution of software.

Avoiding illegal software is easier said than done, however. The quantity of pirated software in circulation is startling. Comparing the difference between software applications installed and software applications legally shipped, a Business Software Alliance (BSA) study reports a global piracy rate for commercial software of 39% for 2002. And that's an improvement: In 1994, the global piracy rate stood at 49%.

Illegal software can end up on your computers through various channels. Some business owners seeing software offered at deep discounts may simply order and install it. Or an employee may install a program she purchased for her home computer, but also wants to use in the office.

Still another source is the computer maker you bought your PCs from. This system builder may have — either knowingly or unknowingly — pre-installed pirated or counterfeit software.

Piracy is about licensing

What constitutes software piracy depends on what type of license the software in question carries. Understand that, like other published creative work, software is protected by copyright law. So when you buy software you only purchase the right to use it under the licensing rules set by the software publisher that owns the copyright.

For instance, a license for retail shrink-wrapped box containing Microsoft Windows XP restricts you from loading the software onto more than one computer. On the other hand, a volume license can give you the right to load your software on anywhere from five to several thousand computers.

Under these conditions, software piracy may occur when you or an employee:

Installs one licensed copy of a program on multiple computers.
Copies program disks and distribute them so others can install the software.
Buys counterfeit software over the Internet or through an online auction.
Buys a new computer on which the seller has loaded counterfeit software on the hard drive.
Have too many employees on your network using a copy of a volume licensed program located on a network server.

Product activation is one way the software industry has approached reducing piracy. Product activation works by validating (either online or over the telephone) that the software's product key required as part of product installation has not been used on more PCs than is allowed. Failure to activate in a designated period of time prevents you from using the software until it is activated. (Microsoft does not use product activation with volume licensed software.)

Most software makers have minimised product activation to a simple online process that calls for only inputting an installation number and country identification. Product activation is not the same as registering your software.

Get "Genuine" to avoid software sorrows

Making sure to install and run what the software industry refers to as "genuine" software provides protection against experiencing software sorrows.

Aside from avoiding possible legal consequences of getting caught with pirated software, using genuine, properly licensed software:

Gives you access to documentation and warranties. Illegal software contains inadequate or no documentation, and no warranties leaving your company on its own to deal with a failure.
Makes technical product support available.
Makes you eligible for software updates and upgrades.
Reduces exposure to software viruses. Untested, counterfeit discs may be infected with viruses that will damage your hard drive and may cripple your entire network.

How do you know?

If you're unsure if the Microsoft software you're running on your PCs is genuine, visit the Microsoft How To Tell site. This site can help you verify the authenticity of Windows, Office, Visio, business applications and developer and IT professional products.

To avoid pirated software from being installed on your computers in the future, and any company liability associated with it, consider the following:

Use caution and common sense when you buy software. Software advertised as both genuine and deeply discounted should raise your suspicion. Make sure a computer maker who pre-installs software provides you with product keys.
Purchase software and licenses from the manufacturer or authorised distributors.
Create and communicate a policy forbidding employees from loading copied or illegal software on your workplace computers.