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The Business Software Alliance (BSA) takes tips from an online form and also a hotline (where they also offer rewards of up to $1 million) and then work with software vendors to take action - which could mean a negotiation of fines, and/or a costly audit and in more extreme cases they refer the offending companies to the Department of Justice (DOJ). In theses cases, After the DOJ receives a tip, it refers the case to the FBI for investigation. Once a case receives confirmation as a viable tip, the DOJ prosecutes.

Why is the BSA in existence? Software piracy can be a lucrative business, and software manufacturers consider it a growing problem worldwide. In fact, , 35% of PCs worldwide have illegal licenses installed - 21% of them in the US. That is nearly $40 billion in global losses for the year 2006 alone! The cash incentive of the BSA tip line appeals to many disgruntled employees, who turn in former employers for violations.

Software vendors are always trying to protect their revenue streams and even make new ones. They aren’t going to sit back and watch their profits deplete because of offenders. They also do not discriminate, so whether it’s the big time software pirate who is selling copies of Microsoft Office or a 100-person organization that is misusing their licenses (and may not even know it), they will come after you. Not only do they use watchdog agencies like BSA, they are increasing the amount of audits they do on their own. Don’t take the chance!

According to the Legal Information Institute at Cornell University Law School, Article 1, Sec. 8, Clause 8: “The Congress shall have Power … To promote the Progress of Science and useful Arts, by securing for limited Tımes to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.” (LLI) Among those “useful Arts” is computer software licensed by companies like Adobe, McAfee, Microsoft, and Symantec. Further protections are granted under 17 U.S.C. §504, the Federal civil penalties for the recovery of actual damages and profits made from the non-compliance based on the actual number of copies produced. Additionally, unless a company can prove otherwise, the assumption is that the infringement was willful and therefore penalties of up to $150,000 in statutory damages for each infringement may be granted. Furthermore, the costs can also include the recovery of attorneys’ fees under 17 U.S.C. §505. (Copyright.gov)
Why is this important? Using Pennsylvania as an example, in 2002 software piracy cost the state economy more than 4,100 jobs, over $195 million in wages and salaries, over $193 million in retail sales, and approximately $51 million in total tax losses.  In total, software piracy cost the state of Pennsylvania over $439 million in losses in just one year.

In fact, in 2006, 35% of all the software loaded on personal computers worldwide were not associated with legal licenses. That means the software developers‘ loss equals nearly $40 billion globally due to software piracy in just one year!

Is it any wonder that software companies join organizations like Business Software Alliance (BSA) to protect their interests? BSA investigates leads of software license copyright violations. That is bad news for companies like MD of PC, based in Coraopolis, PA, which recently agreed to a $36,000 settlement in a judgment with the Federal District Court in the Western District of Pennsylvania for selling unlicensed software. In another recent software piracy case, two brothers in Florida - Maurice and Thomas Robberson - received collective sentences of 66 months in federal prison for selling more than $6 million of illegal software.

We are so excited to welcome the newest member of the Animus family - Germaine Gibbs - as our CFO. She will immediately assume responsibility for the company’s finances, forecasting and the Controller’s office. A talented woman and business owner (she owns one of the top Wellness Sanctuaries and Spas in the Tampa Bay area), she has a lot of great experience that will benefit us as a growing company. Prior to joining us, Germaine taught Corporate Finance at the University of South Florida.

Welcome, Germaine!!!

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