BSA doubles UK haul in 2010

Whistleblowing employees helped anti-piracy body sting UK firms to tune of £2m last year

UK firms caught out by the Business Software Alliance (BSA) paid out twice as much in settlements and costs associated with becoming compliant in 2010 as a year earlier.

The anti-piracy body says UK firms captured in its net last year had direct costs of £2m, with the largest individual settlement standing at £40,000.

The BSA stressed this figure only represents the amount paid out as a direct result of BSA legal actions. Legal costs, as well as more intangible costs relating to operations downtime, reputational damage and impact to cashflow, would make the real cost higher, it argued.

Across EMEA, unlicensed software use cost businesses £11.3m, up almost £1m on 2009, the BSA said.

The organisation, which counts Microsoft and Adobe among its members, settled with 447 firms across the region after receiving over 3,000 leads last year.

UK firms caught in its net in 2010 include Native Design, which settled for £24,000, Glasgow-based Barrhead Travel and Armstrong Medical from County Londonderry, which paid out over £10,000 and £12,000 respectively in settlements and new licenses.

Julian Swan, director of compliance marketing EMEA at the BSA, said the increase in the UK figure is partly attributable to the BSA's practice of offering rewards to whistleblowers.

"Informant reports come through frequently and businesses need to be aware that it is easy for employees to blow the whistle on unlicensed software use," he said.

Michala Wardell, chair of the BSA UK Committee, added: "This is money businesses can ill-afford to lose, especially during an economic downturn. Many businesses need to understand that software is a valuable asset and is a key driver of growth for UK plc. Companies that don't comply can expect to face stiff financial penalties as a consequence."