Only one in two small firms can say with confidence that all of their computer software is licensed, according to worrying research conducted by the Business Software Alliance.
The business advice survey also suggests that 41% of small companies believe there is no risk from having unlicensed software and that 85% fail to realise that using illegal software could make them more vulnerable to viruses.
The Business Software Alliance is warning small firms that using illegal software, whether unlicensed or pirated, can leave them open to security threats and damage to their corporate reputation, as well as the legal and financial consequences of being caught using illegal programs.
It also warns that while 97% of those questioned were confident all software was legal, this does not tally with the current software piracy rate in the UK of 27%.
“It‘s clear from the business advice survey that directors of many British businesses just don‘t realise the risks of using illegal software,” warns Ram Dhaliwal, UK Member Committee Chair at the Business Software Alliance. “Small companies and business startups need to recognise that they could be susceptible to serious operational and IT risks, aside from the legal and financial consequences.
“Simply by having better software management processes in place – such as regular audits, enforced employee usage policies and license management – small firms could avoid finding themselves in this situation,” he added.
The average fine for small businesses caught using unlicensed software in 2006 was �10,000, while companies using such versions also put their data at risk as they do not receive the same support, services or patches experienced by legitimate users.
The organisation also warned small firms away from auction site sellers or downloading software from peer-to-peer networks. Research company IDC recently found that the chance of buying legal software from an auction site was less than 50% while internet security company Symantec reported that 47% of malicious code was spread through P2P networks in 2006.
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