The Dangers of Ignoring Software Compliance Requirements

Modern businesses rely on software to get things done. Programs may be applicable to any business, such as accounting software, or they may be coded specifically for a specific business sector. In the past, you had to purchase a physical disc to use the software. Today, it can be downloaded quickly and activated with a license. Software licenses may be obtained for a single machine, a single workplace or an entire corporation. Cheating the license system can have serious consequences.

You Can Be Fined

It can be tempting to try to cheat the system and work around software compliance rules. A crafty IT professional might figure out how to crack the license and run the software for free. Software companies require periodic audits of company computers. For example, Quest is being particularly aggressive about their audits right now. These audits have the benefit of making sure that all computers in a company are running the same version of the licensed software. However, if the company finds unlicensed software in use, they can assess a fine for each unauthorized copy.

You Can Get Sued

In some cases, a breach of software compliance is an accident. An employee may have installed a personal version of a software program without recognizing the change from personal use to commercial use. In extreme cases, a business may intentionally cheat the software company, running many copies of the unlicensed software. In this case, the software company may decide to sue the business for illegal usage or copyright infringement. This not only takes up time, but it can cost the business a great deal of money in legal fees and penalties.

You Can Damage Your Reputation

If your company has a history of noncompliance, you may find it difficult to get software companies to give you a license. You will be limiting the kinds of tools you give your employees. In addition, in this age of social media, the public reputation of the business will also be damaged. They may assume that if you are dishonest in one area, you are probably dishonest in others as well. Clients are not attracted to companies that cheat the system.

Computer software is a serious investment for your company because software companies and developers deserve to be fairly paid for their work. The images and tools on the computer screen represent many hours of creative effort. Software companies want to give you the best tools available to keep your business productive.

ScaleUPCheckUP is here and it is a game-changer. The game changing and software compliance is but one of the essential considerations – are you ready? Contact us at or 1-866-724-0085 for more information.

While the above is not and should not be considered legal advice, since circumstances vary, ScaleUPCheckUP monitors these rapidly developing issues, as enforcement of the law switches into high gear. Instead, the foregoing is intended as an overview and not legal advice, nor does it create an attorney-client relationship. However, contacting an attorney to steer through the maze of bureaucracy to register and defend a mark may very well be necessary to consult an attorney.

ScaleupCheckup’s blog, website, newsletter and other forms of communication contain general information about legal and related matters. The information is not legal advice and should not be treated as such. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider. If you have any specific questions about any legal matter you should consult your attorney or other professional legal services provider.


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