The new enemy for software companies today is not just piracy, but also fraud. Thanks to the extensive research and development done by most of the leading software vendors today, piracy at computer level has been drastically reduced.
Unfortunately, software fraud doesn't stop there. There is a new trend emerging - that of increased fraudulent registration attempts.
There's no doubt that the progress made by software vendors to combat piracy is both innovative and forward thinking, and the new approach to software installation has positively impacted on piracy. However, people installing on multiple machines, or at various branches, often falsify information to avoid purchasing additional licences. This has given rise to fraud, and it's an enemy we should all watch out for.
Fraud is all too often perceived as a victimless crime, but I believe that in the case of software, it has an immediate effect on the piracy rate if the fraudsters are successful. Combating it begins with knowledge and awareness. It's often impossible to prevent fraud (or to discover those committing the crimes) without understanding what fraud is and how it is perpetrated. I view fraud as deception aimed at personal gain.
There are several practical measures to prevent fraudulent registrations. In my experience, the presentation of an original company letterhead serves as a good example of such precautionary steps. Anyone wanting to upgrade their software must present an original company letterhead containing the necessary registration information as opposed to simply calling or e-mailing the request. Now the software vendor can verify the request and know it is legitimate.
Taking responsibility
Fraud is all too often perceived as a victimless crime, but I believe that in the case of software, it has an immediate effect on the piracy rate if the fraudsters are successful.
Philip Meyer is the software anti-piracy champion at Softline, and technology director at Softline Pastel Payroll.
In promoting a safe and legal digital world, we unfortunately have to ask lawful users to go through the same process of supplying additional information. This is not unusual if considering a bank as an example. A balance enquiry requires information to be supplied that confirms you are the lawful owner of the card you are doing an enquiry on. This should be no different for software.
Considering how much the IT sector is contributing to jobs, taxes and GDP in Africa, we all have a responsibility to stop piracy. Some of the latest IDC research finds that cutting the region's 34% software piracy rate by 10 percentage points over the next four years, will put the IT sector in an even stronger position to provide even more, higher-paying jobs and generate more tax earnings.
It's obvious that fighting piracy has tangible benefits for governments and local economies, so this is one bandwagon I strongly suggest we all jump on - sooner rather than later.
The logical place to start if wanting to determine if a company is operating legally in terms of software is to determine what exactly is installed on its network. Often, the policies in place prohibit employees from making unauthorised copies, but these policies don't stop employees from copying software. This is where regular audits are critical.
There are many audit tools available, and running these tools and then comparing the information to licence documentation, is a great first step to determine whether the company is in compliance. If it passes the compliancy test, congratulations! If not, take immediate steps to obtain the licences necessary to get back in compliance and, make it a priority to review the existing software policy.
Tidying up
Managers need to make the time to get to grips with the basics of software licensing agreements. A common mistake in SMEs especially is that people associate a licence with a PC rather than the user.
As computers are often handed down, many people forget or don't realise that software should be deleted from the old machine if the company has only one licence for it, even if the new user will never use this software. Such basic oversights could land a company in hot water, so I suggest organisations get on top of their software inventory and understand how licences work to avoid any nasty repercussions.
Cleaning up the software inventory at least once a year is also a good idea, and can be done in-house or outsourced to a reseller or IT specialist. Dust out the cobwebs and keep what is needed - legally. I think this is a positive approach and shows the company's commitment to banning piracy from its business plan.
The negative impacts of fraud and other forms of software piracy extend from the companies that wrote the software, through the ecosystem of local resellers worldwide that depend on software sales, down to individual consumers.
Everyone loses, so it makes sense for everyone to get involved in the fight for safe and legal software. We'll all reap the rewards.
* Philip Meyer is the software anti-piracy champion at Softline, and technology director at Softline Pastel Payroll.
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