Ramesys in piracy settlement
VAR makes undisclosed payment to Microsoft after unknowingly acquiring illegal software
The dangers of acquiring a company without thoroughly checking the authenticity of its software has been highlighted by the plight of Microsoft VAR Ramesys.
The Nottingham-based firm, which specialises in the education and government sectors, recently agreed a settlement with Microsoft and re-licensed several customers after finding it possessed a substantial number of counterfeit Microsoft products.
The illegal software was initially purchased by reseller The Data Base, which used the products in IT systems it developed for customers.
Ramesys subsequently acquired The Data Base and renamed it Ramesys e-Business, but was unaware of the pirated software.
The individuals who sold the software to The Data Base appeared at Reading Crown Court last August, accused of large-scale counterfeiting, and were sent to jail.
Gordon Matthew, managing director of Ramesys, said: "We undertook what we felt were the appropriate checks when acquiring The Data Base, but these items were not discovered. Our reputation is important and we would never knowingly use illegal software in this way."
A recent Business Software Alliance (BSA) study revealed that the UK's piracy rate rose for the first time since 1994 last year, with 26 per cent of UK software pirated.
Julia Phillpot, licence compliance manager at Microsoft, said that even the top partners can get caught out.
"This shows how easy it is to get caught out, and when acquiring a company and its assets it is easy to overlook the possibility of ending up with pirated software. To save potential problems, a company should request a detailed breakdown of where software is sourced from and full invoice records," she said.
Mark Floisand, chairman of the BSA, said: "Companies that make an acquisition normally make a check-list, including such items as financial reports and fixed assets, but software is not seen as a strategic asset because it is more intangible.
"However, licensing is something that needs to be looked at closely during an acquisition, because ignoring it exposes a company to risk."