Under-licensing threat could cripple UK firms
The Federation urges VARs to warn customers of the penalties faced under tough new law
Firms that fail to fully license software could find themselves struggling to pay their debts, as UK courts are one step nearer to being able to impose devastating fines on those that are found to be under-licensed.
The Federation Against Software Theft (The Federation) is advising VARs to ensure their customers are fully educated about the perils of under-licensing, as Article 13 of the European Union Enforcement Directive, part of the Intellectual
Property (IP) Regulations 2006, is transposed into English law.
John Lovelock, director general of The Federation, said: “The Directive has been discussed for the past couple of years and it has already been agreed by Parliament. We believe courts will start to make use of it by the autumn.”
Lovelock added that in the past, guilty firms have had only to pay the money they owe for licences. However, the Directive now gives courts the power to significantly increase the penalty for software misuse and provide those that own the IP with proper compensation.
He said resellers should take advantage of the Directive and use it as a tool to ensure firms are paying for the software they use.
“Resellers need to keep strict records and ensure firms are properly informed of the possible penalties,” he added.
Michala Alexander, UK head of anti-piracy at Microsoft, agreed.
“Strong IP protection sustains business development, drives R&D and allows organisations of all sizes to compete in the global economy. This can lead to the protection not just of Microsoft’s IP, but also of those partners that develop their own IP on the Microsoft platform,” she said.
“In the UK, our “Keep IT Real” initiative aims to protect the legitimate channel by reducing the social and economic impact of pirated goods.”
Ross Miller, managing director of VAR Trustmarque Solutions, said: “We are talking about theft here, and we fully support anything that penalises firms that are not paying for their software licences.”