Companies continue to cut legal corners and use pirated software, says the Business Software Alliance (BSA).
The association says that, in 2008, it took 193 legal actions against companies illegally using software. The cost to businesses - the combined cost of damages and acquiring legal software - was over R2 million, the BSA said.
The association also says the majority of piracy was perpetrated by companies in the Internet service provider sector and located in the Johannesburg area.
The BSA also says that, of the 193 legal actions undertaken on behalf of its members, over R130 000 was paid out in damages. There has been an increase in piracy and the BSA expects a further increase in 2009. In 2007, the association executed 126 legal actions against companies in SA - an increase which the BSA says is closely linked to growing economic concerns and a focus on cutting costs by companies.
According to the BSA, the need to cut costs results in many companies increasingly breaching intellectual property rights and disregarding the consequences of this choice.
Senior director for legal affairs, in EMEA, Sarah Coombes, says: “The 2008 costs to businesses illustrate the serious financial consequences faced by companies who illegally use unlicensed software.”
Alastair de Wet, chairman of the SA BSA, says that, while pirated software may be cheaper, companies should stick to legal software to protect themselves from the risks which come with unlicensed software.
“However, it is not only the financial consequences that businesses must consider. Using unlicensed software opens businesses up to the risk of operational issues, such as viruses causing downtime, security threats, including data loss, and reputational damage. We urge companies to understand the risks of using pirated software, as well as the advantages of licensed versions. Legal software provides support, services and upgrades, which ensures your business runs securely and efficiently.”
Coombes also adds that, because of the growing trend, crack down efforts on piracy will increase and recommends that “businesses should protect their assets, rather than use the unstable market as an excuse to cut corners”.
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