BSA offers $1m US 'piracy' bounty

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Americans willing to report their employers for using counterfeit software will be able to claim up to $1m (£496,181) in rewards, after the Business Software Alliance announced a three-month promotional bounty.

Although the Business Software Alliance's (BSA) US operation ordinarily offers a maximum of $500,000 (£248,056) for "qualified reports" of illegal software use in business, it is doubling that figure from July to October of this year in order to highlight its "commitment to fighting software piracy in US businesses", the organisation announced on Monday.

However, as Anne Broache of ZDNet.co.uk's sister publication CNET News.com has noted, the BSA has publicly paid only one bounty in the US, totalling $15,500 (£7,689) between three informants. The BSA's rewards appear to be entirely discretionary, and someone claiming the full $1m bounty would have had to expose illegal software use resulting in penalty payments of over $15m (£7.4m).

A spokesperson for the UK branch of the BSA confirmed that British whistle-blowers could not expect a similar reward for reporting their employers. The maximum bounty on offer in this country for such reports is only £10,000, and there is no indication of that figure increasing. Last month the BSA did however fine an unnamed UK company £250,000 for its use of unlicensed software.

Talkback

It has been our experience over the last 17 years that this type of reward scheme encourages dis-gruntled employees or ex-employees to "get even" and cause significant disruption.

In our view, reward schemes do not solve the problem at all and we have been convinced of that over the last 12 to 15 years (Australia has had rewards since mid 1990s). All we have seen is massive amounts of wasted money and effort and seen no real change in the piracy ‘statistics” (which we don’t place a lot of credence in) that crop up every year.

Why mention this?

Its one of the lower level governance items that can easily slip under the radar when it gets to the controls aspects as many tend to downplay or ignore the impact.

The reality is, if your business is “suspected” of having software as a result of a “claim or report” (made under statutory declaration) by an employee or ex-employee, we can tell you that the impact is really very time consuming, disruptive and costly to defend. It could also cost you your job if you failed to adhere to the basic premises expected when running a business/IT system etc.

In practice, most sites end up paying the pipers tune (around 5 to 6 figure sums) as they really have no idea what is installed on their systems due to lax controls and inefficient management practices, and in some cases sheer stupidity. It also drives people down the Open Source path as well. Whether Open Source is good or bad is not the debating point, the fact is it is very disruptive to be running a business house to be presented with these reward schemes and then see the knee jerk reactions that inevitably follow.

The rule of thumb you can use (based on past experience from cases we have seen) is multiply the published fine by 3 to 4 times and you get the true cost of disruption, legal defense, staff costs, extra software licenses etc as the fine is only the external costs shown!

Make sure your local management controls cover the manner in which you install, license, share and use software and the manner in which you audit and monitor activities of employees.

Ignore the issue and the reward scheme will bite you!

Many will now be tempted to claim the reward, so don’t underestimate the creative power of those who know how to “work the system”. Some “creative individuals work on the premise of “never get mad, wait for a time to get even”.

$1M could be a good reason for some to “even up the score” against a boss who was doing the wrong thing, or even if they were just browned off with the organization!
www.pcprofile.com

ITAuditor 7 July, 2007 05:02
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