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Is the BSA "Grace Period" a Scam? 879

An anonymous reader asks: "I work at a small non-profit that has 18 employees plus a 13 seat computer lab. We received a form letter from the Business Software Alliance (BSA) telling us to do a self audit and if we find any unlicensed software to report it during our 'Grace Period' because 'if you organization's software is not licensed, it could become to focus of a BSA investigation'. Now this is obviously a method to scare up some business for the BSA members. If we ignore this, how likely is it that we will be 'investigated'. I know that I cannot produce the original CD's and/or documentation for some of the software that we HAVE paid for."
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Is the BSA "Grace Period" a Scam?

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  • by Zephyre ( 111710 ) on Wednesday February 05, 2003 @10:39PM (#5237236)
    I used to work for a small computer repair shop in my town before I moved off to school. We recieved the same letter from the BSA, grace period and all. We completely disregarded it. If the BSA had looked closer at our small business, we definately would've been shut down. I can't see why the BSA would care about your non-profit organization.
  • I'm not a lawyer, (Score:5, Interesting)

    by sstory ( 538486 ) on Wednesday February 05, 2003 @10:43PM (#5237262) Homepage
    but as far as I know, a trade group like that cannot demand access to your computers, or your facilities. The BSA has no power to force any sort of audit of your licenses. We have old computers at work, and might not be able to locate proof that we paid for some of this stuff years ago. I manage the computers there, and if the BSA ever contacts me demanding an audit they'll be told to choke on it.

    If it's somewhere in a license they can show we bought, that we have to allow access to the installed software, then for every license they can show, I can provide an adequate installation.

  • by Anonymous Coward on Wednesday February 05, 2003 @10:44PM (#5237274)
    We got one of these...

    They called a 'truce' in our town of 500. We are a 2 employee show, run from a basement.

    We bought a bunch of stuff, but never sent in the registration cards. We registered some stuff back in '97-'98 probably, and nothing since. We haven't gone out of business, so they figure we're probably pirating something. We are not, but since we haven't registered anything in a while (Microsoft Tech support is sooo valuable!), and are continually considering the move to Linux (just a matter of time...) we come up in their database as a possible pirate. Oh the miracles of databases!

    All we did was make a file of receipts and certificates, and they can wade through it if they come a knockin. We're sure it's all there, and we can hopefully sue if they end up siezing a computer, especially since we are legal.

    We had to look real hard for the licenses, but we found them. The certificates are useless without a receipt.
  • by Dave21212 ( 256924 ) <dav@spamcop.net> on Wednesday February 05, 2003 @10:44PM (#5237278) Homepage Journal
    I work in an enterprise environment. Last year, I registered for one of those free magazine subs and a few weeks later... viola, a letter from the BSA using the same name/address pair.

    The BSA must be getting names from those lousy online surveys (company size, whats your position, how much software will you be buying in 6,12,24 months).

    Sounds more like SPAM to me !
  • BSA (Score:3, Interesting)

    by Agent_Eight ( 237857 ) on Wednesday February 05, 2003 @10:44PM (#5237279) Homepage
    I got the same form letter about a week ago. I'm just a student so I'm not really sure why I got sent one. I do have all the receits for the software I use. After reading it several times, I'm just assuming it's a scare tactic to drum up sales.

    I think the only question that went through my head was what if any legal power would the BSA actually have if they did decide to audit me. Seeing as I don't own a company ...

  • by jumpingfred ( 244629 ) on Wednesday February 05, 2003 @10:47PM (#5237309)
    I think you are correct in that they just get a bunch a mail lists and start firing off the letters. We started getting these letters when my wife passed the bar.
  • by jgerman ( 106518 ) on Wednesday February 05, 2003 @10:53PM (#5237343)
    ... disregarding the obvious problems I have with the BSA which other are sure to point out (and that I have ranted about before) legality, authority and such. It seems very odd to me that anyone should have to PROVE they bought something. CompUSA pulls the same shit when your walking out of the store, I get pretty irate and being stopped and having my purchases searched at the door, especially when I took only TEN STEPS from the register. But that's a little more understandable than the BSA's tactics, after all if I'm in the store with no receipt it's more likely that I didn't just lose it (though it is possible). When you buy site licenses I can imagine you have to show that you have a valid license, as far as proving you didn't buy it after the letter was sent, they can fuck off. If your legal now there's nothing they can do. But what about off the shelf purchases? What about backup copies (allowed by law) that were kept in a firesafe when the originals were destroyed. Like someone commented earlier, you are innocent until proven guilty, the burden of proof is on the prosecution. Hell I'd demand a jury of my peers.
  • by Anonymous Coward on Wednesday February 05, 2003 @10:56PM (#5237367)
    Quote from an interview with Bruce Perens by Joe Barr:

    "What is happening is that through various legal "gotcha's" that are incorporated in the EULA, or in things that are deceptively sent to companies, [the BSA] are getting a company to waive a legal right: the right to privacy.

    "They send you a postcard and ask you if you want to know about licensing. If anyone in your company signs it and returns it, it actually gives them authority to come in and audit your company. I don't have direct experience with it, and if you go look into the press on BSA you will find out about this one. They target low-level employees in your company, and it sounds on the postcard like it's a seminar on software licensing. But if someone checks "Yes, I'm interested", then somewhere in the fine print it's actually an invitation to come and audit the software licensing for the company."


    http://www.linuxworld.com/2003/0117.barr.html [linuxworld.com]
  • by nyet ( 19118 ) on Wednesday February 05, 2003 @10:57PM (#5237373) Homepage
    Would be nice to crucify the BSA with the RICO Act under the "conduct or participate, directly or indirectly, in the conduct of such enterprise's affairs, through a patter of racketeering activity" section, for misrepresenting the legal system for the express purpose of intimidation.

    Nailing them for mail fraud would be nice too, if you can find them deliberately transmitting false statements.

    They are scum only out to extort a buck.
  • by Anonymous Brave Guy ( 457657 ) on Wednesday February 05, 2003 @11:00PM (#5237393)

    ...actually installed illegally pirated software, though. Show me a case where a group with genuinely bought software but a couple of misplaced certificates was successfully sued?

  • No leg to stand on. (Score:5, Interesting)

    by dentar ( 6540 ) on Wednesday February 05, 2003 @11:04PM (#5237424) Homepage Journal
    I've seen these letter before from clients. If they do not specifically charge you with piracy, stealing or whatever, throw it out and don't bother downloading their spyware.

    You have the same rights you always had. They have to have probable cause to get a warrant, and they have to have a warrant before they can come into your office forcibly. A warrantless vampire cannot come in unless you invite them in.

    IANAL, but I believe that as long as you have practiced due diligence and can show that you took reasonable steps to not break the law, then no judge with an actual brain would rule against you.

    That being said, the BSA is looking for those who buy one copy and load it all across the office. I know of a company that did that, got ratted on by a disgruntled employee. Bottom line: they paid big. These are the fish they want to fry, and there are plenty of them out there.

    Now, if you've been pirating software, and get a letter, and throw it out, and they still come after you, you won't get any sympathy from me!

  • by nomadic ( 141991 ) <`nomadicworld' `at' `gmail.com'> on Wednesday February 05, 2003 @11:04PM (#5237426) Homepage
    Step 1: Promise not to sue people Step 2: ???? Step 3: Profit!!!

    "Grace period" means they won't sue you if you come forward. It doesn't mean they'll let you continue to use pirated software; they just expect you to buy legitimate copies at this point. It's the same thing that the IRS does every few years. If you come forward they won't penalize you for not having filed your tax returns, but that doesn't mean you don't have to pay any back taxes.
  • by rindeee ( 530084 ) on Wednesday February 05, 2003 @11:16PM (#5237477)
    And they know he has seen and agreed to those EULAs how? If they don't know for fact that he is using particular software, they can't very well use the fact that he might have clicked "I Agree" as grounds to force their way in the door. Besides, that's what really big mean dogs are for.
  • GNU GPL (Score:2, Interesting)

    by djtrippin ( 613642 ) <djtrippin@hackernetwork.com> on Wednesday February 05, 2003 @11:22PM (#5237537) Homepage
    I'm a student and I've recieved three of their letters. The last one I recieved was about 2 months ago. I drafted a letter and mailed it to them saying:

    All the software used on my computer is Open Source. You're very welcome to come audit me, but I dont keep my licenses on hand. You can find my licenses and user agreements online, at nearly any computer software oriented site. Perhaps you are familiar with my software license's, it's called the GNU GPL. Good Day Gentlemen.

    Funny thing is, they havent replied yet to that letter...I wonder why?
  • It works (Score:3, Interesting)

    by captainbocephus ( 648007 ) on Wednesday February 05, 2003 @11:27PM (#5237573)
    I worked at a small, poorly-run brokerage firm this summer, and witnessed the stupefying power of the BSA first-hand. They drummed up a lot of publicity by having the local papers run several stories about regional busts they had made (both of which were the result of disgruntled ex-employees turning in their former employees), and buying some ad space on local radio stations. Then the letter came, and my boss, not knowing much about the ways of legality and whatnot, promptly allocated over $15k for systematic re-purchase of all software currently installed on the computers. Most of the progs were fairly up-to-date, and many (but not all of them) were properly licensed. Moral of the story; this is a scam, albeit a very effective one, as it is supported by legitimate businesses engaged in an underhanded approach to bolster their own sales, and I have a feeling that many more bosses than just my own went out and needlessly spent large sums of money in fear of being found "not in compliance".
  • by Anonymous Coward on Wednesday February 05, 2003 @11:27PM (#5237576)
    IANAL

    Just doing a quick lookup on racketeering and RICO I came across this definition.

    The statute's definition of "racketeering activity" includes "any act or threat involving murder, kidnapping, gambling, arson, robbery, bribery, extortion, dealing in obscene matter, . . . which is chargeable under State law and punishable by imprisonment for more than one year . . ." An "enterprise" is defined to include "any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity; . . ."

    Since the BSA is sending letters threatening an investigation in an attempt to scare you into buying more software, it sounds like extortion.

    Maybe you could turn in the BSA (or Microsoft for that matter) and get all their assets siezed!!!
  • It happened to us (Score:5, Interesting)

    by bozojoe ( 102606 ) on Wednesday February 05, 2003 @11:30PM (#5237602) Journal
    At my last firm the EXACT same thing occured. We received a letter from the BSA stating the grace period and turn yourself in routine. More importantly the letter listed some of the "suspected" software licenses that we did have. Granted the list of software was close the standard microsfot office/ ms platform company. BUT it also listed a specfic version of a certian database and devleoper platform.

    Did my company take the letter seriously, yes. My recommendation was to ignore the letter. The higher ups decided to create the tally and show the licenses. Now, at this point they "know" we dont have enough licenses. Its hell trying to find licenses for machines purchased at company buy-outs. So the letter goes back to BSA saying here's what we DONT have.

    Sure as s$%t here comes the new letter from BSA saying we are coming after you. It sounds very threatening, like a mugger is breathing down your neck. Well.... then the higher ups look at the bill they owe, they scamble asking friends for licenses, but hell no dont buy them (talking close to $50K). After calling in the favors my company still is not compliant. The decide is at this point, drop it. So we do nothing.
    (finally)

    Result:
    Absolutley nothing after the 2nd letter.
    If you respond(like spammers), they have a live one

  • by ender81b ( 520454 ) <wdinger@@@gmail...com> on Wednesday February 05, 2003 @11:37PM (#5237645) Homepage Journal
    I cannot find the link (it was 7-8 years ago) but my University was sued, big time, for 10's of millions of dollars. The BSA did a software audit found thousand of machines 'not properly licesned'.we HAD all the damm liscenes but we just ghosted all our machines with one image one we got them, figuring a long as we had enough certificates it would be OK. Wrong. They got out of it by paying a million or so and signing a Microsoft Campus Wide license agreement. So now we don't have to worry about the BSA...
  • Re:I'm not a lawyer, (Score:2, Interesting)

    by danoatvulaw ( 625376 ) on Wednesday February 05, 2003 @11:37PM (#5237646)
    That is an excellent statement. They have absolutely no legal authority to force you to let them inspect your system, EULA or not. EULA's are at best a murky subject currently, and at worse for denying them access you could face a breach of contract action. The chances of that, however, are very little. Let them try and bring the action and attempt to prove that you have pirated software. Simply saying "you have software that our people make, and if you dont have documentation for it, it must be pirated" wont fly with the court. The burden of proof is on them, remember.
  • by Anonymous Coward on Wednesday February 05, 2003 @11:40PM (#5237655)
    What do they do if you don't have any bsa software at all? If you only have open source software?

    Since you don't have any license agreements, they have nothing to enforce. They have no legal standing if you have nothing to agree to.
  • Re:How it works (Score:3, Interesting)

    by Kevinv ( 21462 ) <.kevin. .at. .vanhaaren.net.> on Wednesday February 05, 2003 @11:41PM (#5237659) Homepage
    forgot to mention. when bsa busts somebody they like to make the point as much as possible to make sure everyone knows they mean business so you'll see press releases like this:

    http://www.bsa.org/usa/press/newsreleases//2003- 01 -26.1439.phtml?type=policy
  • Stole from them? (Score:5, Interesting)

    by smartfart ( 215944 ) <joey@joe[ ]lly.net ['yke' in gap]> on Wednesday February 05, 2003 @11:43PM (#5237675) Homepage Journal
    You're kidding, right? The BSA doesn't produce any software. They only run this scam (IMHO, the whole thing is a scam, from beginning to end) because they can get cash from Microsoft and other companies that write software by threatening these companies' customers.

    Personally, I refuse to play. I will not purchase any software from any company that employs the services of collection agencies such as the BSA. Furthermore, I will do everything in my power to dissuade my clients from purchasing software from these companies.

  • by TheCabal ( 215908 ) on Wednesday February 05, 2003 @11:45PM (#5237688) Journal
    We had the BSA sicced on us by a disgruntled ex-employee. We didn't receive one of those mass mailed letters, we received a bona-fide messenger delivered packet from the BSA, naming specific software titles. Also in the letter was their "gracious" offer to do a self-audit and orders to report the results of the audit to them. Failure to comply with their demands would result in the BSA taking us to court, getting a court order to come in and conduct an audit themselves, with their software and people,and under the eyes of either the State Troopers or US Marshals to make sure that we didn't interfere.

    So we did an audit and found out that we were only one copy of a certain software title out of compliance. We sent back the results of our audit, along with copies of our licenses to the BSA, along with an offer to buy the extra license at full retail price. They replied that our licenses and audit results were not good enough, that they also wanted us to produce the receipts for the software.

    The receipts. Apparently, having the licenses are not good enough. Or maybe the BSA figured they could strongarm some money out of us, so they leaned a little harder. I had heard that before the BSA sends out these demands, they research the company to see if they have enough cash to make their efforts worthwhile. Having recently completed a series of capital funding, I suppose we looked mighty tempting.

    This meant many days of going through three years of financial records. Eventually, we found most of our reciepts and purchase orders, except for a few things from the very beginnings of the company when the records weren't really kept. But we did have the licenses. Of course, the BSA, now really smelling blood, came down with an arbitrary amount to fine us along with a statement that if we did not pay this (ridiculous) sum for basically being one copy out of compliance, they would take us to court and demand far more.

    I was never told how much exactly we had to pay the BSA, but I heard it was "not insignificant". It was somewhere in the 5-figure range. All for one copy of Visio, and some tossed receipts from three years ago.

    I always argued that the BSA had no right to demand our receipts and financial records since we were able to produce the software licenses. It's a bunch of crap. I can't see how the BSA can legally operate in this country. There is another organization that operates in a similar fashion- it's called the Mafia. Bastards.
  • Re:I'm not a lawyer, (Score:3, Interesting)

    by the gnat ( 153162 ) on Wednesday February 05, 2003 @11:57PM (#5237756)
    They then force your employees to stand away from their computers while they perform a system audit.

    I remember one Slashdot poster years ago describing how a clueless auditor had to ask for help because the Windows warez-finding software they were using didn't seem to be running properly. . . on a Sun Ultra 10.
  • by failedlogic ( 627314 ) on Wednesday February 05, 2003 @11:57PM (#5237758)
    I find it odd that they use the following statement "among its members Adobe Systems, Apple Canada, Microsoft Canada, and Symantec..." while still claiming to be a non-profit organization.

    When I want to become a "member" of an organisation, I have to pay money. I also expect to get a return on investment. That's not to say that non-profit organizations require money ( e.g. Unicef legitimately needs money for administrative fees ). In this case there seems to be a conflict of interest:

    1) Software company gives money for "membership" to CAAST or BSA. They can prodly annonce they are a member.
    2) The member, in return, gets to reduce software piracy.
    But here's the catch:
    3) There has to be reciprocity in the exchange. The Non-profit organisation is probably making its "volunteers" serious cash, since I presume, they must get a cut for each software sale made. I don't see how it can all go to administrative fees.

    Who would volunteer to help reduce software piracy while devoting a serious amount of personal time w/o compensation - if they're as busy as they claim ( sending letters, having techs scan the network, check licenses, report to vendor....). Show of hands? I don't see any.
  • by hsidhu ( 184286 ) on Thursday February 06, 2003 @12:07AM (#5237821) Homepage
    I dont know why people are tripping about BSA. Who are they? I know they are not the law and thus have to power over me or my business. Do they have any legal leg to stand on in a Court? NO, they can't come into my business and go through the computers. They are just barking and I say let'em bark.

  • Re:I'm not a lawyer, (Score:1, Interesting)

    by Anonymous Coward on Thursday February 06, 2003 @12:09AM (#5237829)
    Yeah, I inherited an office full of machines that had copies of Office installed from another department's server. I've spent the last three years sorting out licensing issues and documenting. About six months into the job I got the BSA letter. I read it, worried about it for about a week, made my boss aware of the issues, and threw it away. I'm very careful now. But if they were to show up at my office, I'd tell 'em to talk to the general counsel and turn them away, campus police escort if necessary. If they had a warrant, I'd have our police talk to their police (hopefully provoking some gunplay for excitement!) before they get through the door, with one of our lawyers present. Maintaining site license records is the biggest pain in the ass of my job, besides fixing those damn cup holders on the computers.
  • by NMerriam ( 15122 ) <NMerriam@artboy.org> on Thursday February 06, 2003 @12:23AM (#5237906) Homepage
    What a way to lose your competitive national advantage - by being the country that pays for software other folks are using for free. Unless we transition to a world where either (1) everyone everywhere pays for software or (2) everyone everywhere has good free software to use, the laws of economics are just going to reward the nations with the most crooks.

    Or, it can just continue as it has been. The wealthy have always paid for research & development -- once we spend a billion dollars figuring out how to do something, keeping that knowledge from everyone else out of spite is pretty pointless.
  • by iabervon ( 1971 ) on Thursday February 06, 2003 @12:37AM (#5237976) Homepage Journal
    I also recall people posting that they had some success offering to ban all BSA-member software from the workplace in order to be able to prove compliance. Basically, they're just trying to get you to buy more licenses, and if you demonstrate a preference for changing platforms over paying their clients more for the software you're currently using, they're likely to shut up, and likely to offer you better deals anyway. After all, MicroSoft is better off with people running Windows illegally than people not running Windows; people running it illegally might actually pay them something at some point, and it doesn't cost MicroSoft anything for someone to run their software.
  • Think about it (Score:1, Interesting)

    by Anonymous Coward on Thursday February 06, 2003 @12:53AM (#5238083)
    It would be very difficult for them to prove that you did steal software. There is no requirement that you have to keep receipts for everything you own. So if I were you, I won't worry about it.
  • by fucksl4shd0t ( 630000 ) on Thursday February 06, 2003 @12:54AM (#5238090) Homepage Journal

    Sure I did. Of course, whether they have any legal basis or not, and if so whether it confers rights on the BSA rather than the software vendor(s), are different questions. The BSA can find out in court, if they really want to know whether I've got any illegal software installed (I haven't) and they're prepared to risk a test case that could destroy their whole threat model (I doubt it).

    First, you agreed to the EULA and the BSA can hold it to you. Simply by giving their corporate member a call and asking for the necessary credentials (if they don't have them already). They only have to become a "designated representative of the company" or something like that. The same reason the guy who answers your tech support call has to provide you tech support even though you didn't personally make your agreement with him. (Does this imply that the BSA is on Microsoft's payroll? Yes, of course, read on)

    Second, the BSA is using a long-practiced business model. Extortion. They are using the tried and true model of, say for example, the Italian Mob. Here's an example:

    Guido: Mr. Chapman, if you don't pay us for protection, there are many criminal elements in this neighborhood who will do serious damage to your business.

    Mr. Chapman: I'm sorry, but isn't that what the police are for? I won't pay.

    -- later --

    Guido: Say Boss, Chapman didn't pay up.

    Boss: Send out an enforcement team.

    -- later --

    Enforcement team thrashes Chapman's business and beats him within an inch of his life.

    -- later (in the hospital) --

    Guido: What happened, Mr. Chapman? Did you get assaulted by those criminal elements I warned you about?

    Mr. Chapman: Yes. I'll pay! I'll pay!

    -- end 1 act play --

    The BSA have no grounds, really. They are enforcing Intellectual Property law, and they are assessing fines, and searching (and seizing, no doubt) private and public property without a warrant. They are not a law enforcement agency, however. They are a private agency. Their NP status is only to prevent the government from attacking them (and probably helps a lot with taxes and so forth), but I'll bet many of their employees receive paychecks from more than one company. In any case, they exist to enforce EULAs that were not made into law in the first place. Effectively, they threaten to bring the law against you. Kinda like "Hey bro, if you don't give me $20, I'll tell the cops you sell dope, and that'll cost you a lot more."

    The BSA is a group of vigilante lawmakers and enforcers, and even though they're not a government agency they must be stopped! THEY are the Lex Luthors and <insert favorite super-villain here>s of the present, and they *must* be destroyed.

    Stand up to them. Tell them to fuck off. Instead of doing an audit, spend your money implementing free solutions. Don't worry about price of implementation, or function, or anything like that. Enact the FIRST RULE OF BUSINESS, and COVER YOUR ASS. Destroy all copies of any proprietary software within your organization and install nothing but free software. Then tell them they can't audit you because you canceled your end of the agreement.

    When they assess a fine, tell them "I won't pay it. You're not a judge appointed by a duly elected representative, and I sure in the fuck didn't vote for you or any politician that created you." When they drag you into court, you COUNTERSUE them, and charge them with extortion! (if you can, extortion might be rigidly defined as threatening physical harm, but i'm not a lawyer)

    When the BSA knocks on your door, you have a perfect opportunity to fight for your freedom, and it's not only a fight that means something, it's also a fight worth winning.

  • by Brymouse ( 563050 ) on Thursday February 06, 2003 @01:06AM (#5238142)
    I recived a Dilbert comic strip BSA threat in the mail a month back or so. I really hate to see Dilbert acting as a mouth piece for these thugs.

    Anyways, I put this up on my site [kb9mci.net]. Go have a look at Asok talking about his new invention that makes all copyrighted material available for free. It's sad.
  • Bill of Rights (Score:3, Interesting)

    by AlaskanUnderachiever ( 561294 ) on Thursday February 06, 2003 @01:09AM (#5238162) Homepage
    Horseshit. You haven't agreed to jack by reading the EULA and clicking OK.

    You haven't agreed to a single legally binding thing. In no way does signing (let alone just reading and clicking OK) ANY sheet of paper (outside of a confession of treason) cause you to give up any of your legal rights. Such a contract is completely unenforceable and would be thrown out the second it enters court.

    They can put in a clause to allow agents to crash at my house on the weekends and eat my dorritos but it doesn't mean it's in any way enforceable. Talk to an attorney. No matter how hard you try you can't sign your rights away. When it comes down to it most EULA's are slightly more valuable than toilet paper due to this fact. Hell, check your state laws. Many states have clauses in their local civil or criminal codes that basically say something to the effect that "contracts that are partially in violation of any participants rights are wholely illegal"

    Do your research. Especially when it comes to your local right to privacy and to unsolicited mailings, phone calls, etc. Has it occured to anyone that "shotgun" tactics might in fact be considered SPAM. Let's get some anti-spam lawyers after their ass. Under my own state and city laws, unless I decide to bend over and say "oh yes please come in and dont' use lube" they can piss and moan all they want and that's about the limit to their "legal" recourse.

  • by Anonymous Coward on Thursday February 06, 2003 @01:17AM (#5238223)
    I post this as anonymous coward because I want to avoid giving my employer anymore "attention"!

    Anyway, here's what happened:

    We are about 1,800 employees big. We go the BSA letters about a year ago. Our legal people consulted with outside legal specialists regarding this. The result was that we caught up on licensing real fast, and we produced documentation to the BSA that proved we were legal and that was the end of the legal hassle. Of course this took about 9 months :-)

    Several comments:

    1) We were big enough to atract attention, and we are profitable, so we were the perfect "target."

    2) No one in our company considers this a "scam." We willingly decided on our own to use commercial software and we intended to pay for it (honestly!). We did find inaccuracies on our purchasing: We had too much of some stuff, too little of other stuff. We purchased what we needed to.

    3) In response to some dumb comments on here: The BSA deals with the software of its vendor members, not ALL software vendors. We were sent a list of the software producers whose products were in question.

    4) Some people here have said that EULAs are invalid: Bullshit. There have been court decisions going BOTH ways, but the more recent antecedents have all been in favor of EULA validity. It can't get much clearer: If you agree to the EULA terms, you are bound by them.

    5) The old "prove it" reprise: Someone here said to just ask the BSA to prove that you stole software. This is inaccurate/misleading. If you say to the BSA "prove it," then the BSA IMMEDIATELY will subpoena your receipts for your purchases (Which, they will successfully argue in court, they need to "prove it"). They CAN do this, and they DO do this. If you get to be too much of an asshole about this, they can get the court marshal to seize your computers. It has happened before...

    6) There are federal statutory guidelines that indicate collectible damages. If you are an asshole to the BSA (or a software producer), they can be assholes back: I believe it was Snapple that got fined a couple million bucks because they were assholes to the BSA... Technically it is a copyright violation every time you load an unlicensed program into RAM (every time you run it). Normally this would fall under the "reasonable uses" clause thing, but since the copyright is being violated, there is no "reasonable use" to it... Therefore every time you run the program you incurr the federally-mandated minimum fine... In case you feel like bitching about this, you should know this case went to court, and was not settled out of court, as far as I know it was not successfully appealed either.

    7) Does the BSA have the right to send these letters? OF COURSE! What are you going to say, "No! I want to hear these threats from Adobe!" Just get it over with... It's easier to deal with one entity, you will get it over with quicker. Ovbiously, the BSA members give the BSA authority to sue on their behalf! The EULA has nothing to do with this.

    8) Lastly: If you use commercial software, it is understood by definition that you must pay for it. What the hell is the problem with that? No one held a gun to your head to force you to use AutoCAD!

  • Comment removed (Score:2, Interesting)

    by account_deleted ( 4530225 ) on Thursday February 06, 2003 @01:20AM (#5238243)
    Comment removed based on user account deletion
  • by anubi ( 640541 ) on Thursday February 06, 2003 @01:20AM (#5238245) Journal
    And print our version of what we agree to in fine print on the back of our purchase order forms.

    IANAL, but something down the line that we reserve the right to make backup copies, reverse the code if necessary to obtain interoperability with our system, and any fees or charges due us if their software fails to perform as advertised.

    Then, if they pull that EULA "agree" button crap, we can just pull our our purchase requisiton, which they accepted by shipping product and accepting payment.

  • by ahfoo ( 223186 ) on Thursday February 06, 2003 @01:24AM (#5238268) Journal
    I worked for a small publisher that was audited by the BSA outside the US. The management was terrified because they had no clue as to what was on the machines and I offered to solve the problem by removing all Windows software from all of the ten or so machines in the office and installing KDE and OpenOffice. There is no way the management would have consented to that without the BSA. Take advantage of this opportunity.
    And I admit that there was one whiner on the staff who absolutely insisted on having MSOffice so instead of buying ten licenses, they only ended up buying one and the rest of the staff was quite happy as long as they still had their e-mail and could get on the web. The BSA is the best thing that ever happened to Linux.
  • by On Lawn ( 1073 ) on Thursday February 06, 2003 @01:25AM (#5238278) Journal
    My "buisness" got the letter too. The funny thing is that my buisness doesn't technically exist. At one time I was out of work, and pushing around to become a small buisness network consultant. I sent out a few fliers.

    I signed up for a free subscription to a magazine that focuses exclusively on "open" source advocacy and products. Part of the questionare was if I owned a buisness. I did, enough to say so on the response card. I put a name on there somewhat arbitrarily. I chuckled when I saw that same name on the BSA letter.

    I still operate as a self-employed consultant, so I never needed to file for a liscence under that name.

    -------------------
    OnRoad [onlawn.net]: Reporting what happens in America when police get out of hand.
  • Re:Stole from them? (Score:5, Interesting)

    by anon*127.0.0.1 ( 637224 ) <slashdot@@@baudkarma...com> on Thursday February 06, 2003 @01:26AM (#5238283) Journal
    You might want to check out who the BSA members are before you decide you're not going to buy software from any company that employs them. Lets see... Microsoft, Apple, HP, Adobe, Cisco, Novell... quite a collection.

    The comparisons to the IRS are pretty apt, though. What generally happens is that the BSA gets a tip from some disgruntled employee/ex-employee that company X is using pirated software. The BSA picks a few of those companies at random (or maybe they have some criteria) and takes 'em to court. Unfortunately, the onus is on Company X to prove that they have licenses for all the software they're using. If they can't, they have to pay for the software and generally get whacked with "punitive damages" as well.

    The BSA uses those cases to threaten everyone else into doing those bogus "self-audits" and sending hush money to the BSA.

    I don't mind paying for the software my company uses, but keeping track of all the licenses is a major pain in the ass. Every software seller has a different definition of what you have to be able to present to prove that you have a license. A piece of paper? Something with the serial number? The installation CD?

    Then they all have different license terms. Some require you to buy one copy for each computer, some let you buy one copy for each concurrent user, some let you uninstall the software from one system and put in on a different one, some make you you buy a fresh copy for each system... it's a HUGE hassle, and the software vendors don't really seem to give a crap about how difficult they're making it for their customers.
  • by ender81b ( 520454 ) <wdinger@@@gmail...com> on Thursday February 06, 2003 @01:30AM (#5238299) Homepage Journal
    Yeah they do care. They want each machine to have a unique license otherwise they bust your ass, it is a violation of the license agreement to have 1 copy installed on 500 machines even if you have 500 licenses. Thank god for the new enterprise agreement. I would HATE to have to fuck around with 500 computers and activate each copy of winxp seperately.
  • Re:Stole from them? (Score:0, Interesting)

    by cscx ( 541332 ) on Thursday February 06, 2003 @01:32AM (#5238309) Homepage
    >What if someone put a license [gnu.org] on software that gave you rights, instead of just extorting money from you?<

    The GPL doesn't give you shit. It's not worth the paper it's written on. I'm just waiting for the day someone tries to pursue this legally by suing someone for GPL violation. Any lawyer would laugh at this instead of taking the case. I'm being 100% serious.

    The GPL may serve a symbolic purpose to some, but it sure as hell doesn't fucking empower you.

    >instead of just extorting money from you<

    Ahh, okay, now I understand the link to Debian. You must have some pseudo-religious belief that paying for software is inherently wrong. Can you for a moment accept the fact that the millions of dollars and hard work that goes into making a polished software product is worth some monetary value to someone? Just because you don't think so doesn't absolve you from paying for it, nor does it indicate that they are 'extorting' money from anyone else. They're just making a successful living.

    Jealous of billg's riches? Well, too bad, some people are good businessmen and some aren't -- just because you're not the richest man in the world doesn't mean you should whine about it and make up all sorts of bullshit lies about how paying for software is "extortion," etc.

    What if I claimed that McDonald's is extorting money from me every time I go in there and request a Big Mac. Because, hey, you shouldn't have to pay for food, damnit, so that's extortion! Food must be free! Too bad they don't license Big Macs under the GPL, because hey, if they give Big Macs away for free, they are empowered to sue me or something should I realize that the 'secret sauce' is really Thousand Island dressing.

    Where am I going with this? I don't know. That is all.
  • by berzerke ( 319205 ) on Thursday February 06, 2003 @01:34AM (#5238313) Homepage

    ...[BSA] if you don't let them in, how can they prosecute/obtain a warrant/whatever?...



    When the BSA does decide to do an audit (as opposed to a mass mailing), it's because they already have some evidence of illegal software use. Most of the time, this is from a former employee, disgruntled employee, or the like (i.e. a contractor you pissed off, former customer, etc.).



    If you don't let them in, then they go before a judge and get a warrant, and then US Marshals come in, and you won't refuse the marshals entry (for very long).



    I know because a friend of mine got raided. The "tip" came from a business rival. The Marshals found everything was in order and the tipster got billed for the cost of the raid.

  • Re:The odds? (Score:2, Interesting)

    by Badanov ( 518690 ) on Thursday February 06, 2003 @01:43AM (#5238358) Homepage Journal
    Under criminal laws it is illegal to audit, but you can throw your rights out the window when it comes to civil law. It is a whole 'nother ball game if the BSA thinks you are illegal and a local law firm they have hired can clean up using you in civil court.

    In civil law, you really have no rights, except to hire a lawyer. Everything else is fair game.

    If the BSA comes knocking with a letter from a local law firm, you are hosed if you can't show you have the licenses.

  • by Schemat1c ( 464768 ) on Thursday February 06, 2003 @01:57AM (#5238417) Homepage
    I don't know what powers the BSA has now but back in the early nineties a friend of mine worked for a company that got hit by the BSA. Due to a tip from an ex-employee the BSA showed up unannounced with a search warrant and a US Marshall in tow.

    Everyone was ordered to back away from the keyboards and stand against the wall in plain view while the BSA guy went to each PC and ran a program on a floppy that would inventory all the software on the PC. He then compiled all the information they got and marched straight to accounting and had them show proof of purchase for every piece of software. Whatever couldn't be proven had to be paid for on top of a stiff penalty.

    I would say yes they do have power over your business and it would be wise to avoid a visit by them.

    ----

  • by Ungrounded Lightning ( 62228 ) on Thursday February 06, 2003 @01:58AM (#5238425) Journal
    "As per your licence agreement we are going to conduct a random mandatory audit of all of your software." then following the audit you recieve the bill for services (profesional services / auditing people), licence compliance or not!!

    The article stated that all of the BSAA members' licence agreements had this clause (audit by a third party agent of the member) so the legal standing was firm.

    So if you have any Microsoft (or other BSA member software) in your shop, they can randomly decide to audit you AND CHARGE YOU FOR THE AUDIT.

    What a great way for them to suck money out of other companies whenever they're in trouble - or when the other company might be developing a competing product and they want to shut it down (or at least suck out some of its blood, disrupt its operations, and maybe steal its product-under-developement.)

    And what a great thing to use to beat around the head and shoulders any corporate exec who made a decision to use a Microsoft (or other BSA affiliate) product - mission critical or otherwise.

    B-)
  • by happyhippy ( 526970 ) on Thursday February 06, 2003 @02:04AM (#5238460)
    and said directly to the IT officer that she was going to jail by the next Monday if she didnt buy their audit.

    She told them to phuck off as she gets these kinds of sales techniques all the time.

    The very next day a Mocrosoft rep called out of the blue. Our MS licences werent up for renewal and we never bought anything from them recently. Coincidence?

  • by doorbot.com ( 184378 ) on Thursday February 06, 2003 @02:07AM (#5238479) Journal
    "Are you serious? What would you do if I refused?"

    I've tried this, after reading this page:

    http://www.crimedoctor.com/loss_prevention_3.htm [crimedoctor.com]

    I actually let them search my purchase bag, but not my work bag, which had my laptop, tools, CDs, etc.

    I'll be honest, I was a bit nervous and I could've handled it better. But in the end, they let me go, with my purchase.

    The guy at the door had no idea what to do though... he called the manager over, and the manager didn't really know what to do either. Here's a tip: Don't give them your bag or receipt, so you can just walk out (which you **can** do).
  • by raju1kabir ( 251972 ) on Thursday February 06, 2003 @02:24AM (#5238540) Homepage
    "They send you a postcard and ask you if you want to know about licensing. If anyone in your company signs it and returns it, it actually gives them authority to come in and audit your company. I don't have direct experience with it, and if you go look into the press on BSA you will find out about this one. They target low-level employees in your company, and it sounds on the postcard like it's a seminar on software licensing. But if someone checks "Yes, I'm interested", then somewhere in the fine print it's actually an invitation to come and audit the software licensing for the company."

    How does a "low-level employee" have the authority to extend such an invitation? Let's say I send postcards to everyone at General Motors offering a free calendar, and the small print obliges the company to sell me all the cars I want for $1 apiece, and someone from the janitorial department sends one back. How far do you think I'll get when I show up with my carny roll?

  • by horatio ( 127595 ) on Thursday February 06, 2003 @02:26AM (#5238554)
    The BSA, AFAIK, is NOT a goverment-sponsered law enforcement agency. I see 'bsa.ORG' not 'bsa.gov' or 'bsa.fbi.gov' The BSA is a trade organization, a bunch of lawyers most likely.

    Therefore, they have NO right to go searching through any of my stuff or your stuff. "EULA says they can" my ass.

    I'm having a hard time find any case law regarding the BSA (if you find some, post it, I'd be interested) ...tho I did find this [mit.edu] quote from one of the BSA VPs last year:

    "...the raids would have an immediate effect on the roughly $12 billion in lost revenue from which the Alliance claims its members suffer each year."

    So they're LOSING that much, which means that to actually be staying in buisness at that rate, how much MORE do they actually have to be making? I'm not advocating piracy, but suppose they're losing 30% to piracy. That means that they are MAKING 40 BILLION dollars a year in revenue.
  • Re:Stole from them? (Score:3, Interesting)

    by 7-Vodka ( 195504 ) on Thursday February 06, 2003 @02:58AM (#5238646) Journal
    well, then there's the fact that these software licenses are overly-complicated. And that the great majority of people who buy software from BSA supporting companies have absolutely no f'ing clue of what they just agreed to...

    In other words, their buisness is dependant on the fact that the huge majority of people they do buisness with, don't know what the terms of the contract is.

    Nice way to do buisness. Very nice.

  • by Fulcrum of Evil ( 560260 ) on Thursday February 06, 2003 @03:00AM (#5238651)

    You know, If the premise of that 'comic' were true, Linux wouldn't have been written, and Mozart wouldn't have done much of anything. Personally, I think it's a dirty lie - if some big corp decides to violate your copyright and you then decide to sue them, they can just spend you into the poorhouse. Never mind that the original intent of copyright law (in England) was to protect publishers.

    I wonder if scott adams knows about this or if he's given up some control of the characters to his publisher.

  • Re:How it works (Score:3, Interesting)

    by dvdeug ( 5033 ) <dvdeug@@@email...ro> on Thursday February 06, 2003 @03:08AM (#5238681)
    Note SERIAL NUMBERS AND CD'S ARE NOT PROOF OF PURCHASE. You MUST HAVE RECEIPTS!

    Whatever happened to possession being 9/10ths of the law? I have the CD's; I have no more obligation to keep receipts then I do on the chairs I have.
  • Re:Stole from them? (Score:5, Interesting)

    by Qrlx ( 258924 ) on Thursday February 06, 2003 @03:51AM (#5238800) Homepage Journal
    What generally happens is that the BSA gets a tip from some disgruntled employee/ex-employee that company X is using pirated software

    Just a real world example..

    I'm the network schmuck at a small company. I got the job because after a year of ineptitude, they let the previous guy go.

    About a week after I started, I got a menacing letter from the BSA. It said we might not be compliant....yadda yadda yadda.

    Well, it turns out that the previous network admin had installed Windows 2000 and Office XP on a lot of computers without having licenses for them...

    He installed the software while worknig there, knowing we didn't have licenses, then when he got fired, he called the BSA.

    Explain to me again why this is the fault of the company, and not the individual who knowingly broke the rules? (And yes I am very hesistant to say "law")
  • by Ryan C. ( 159039 ) on Thursday February 06, 2003 @04:06AM (#5238842)
    I'm sure your company just decided to pay something like a quarter of what it had already spent in man-hours to make the slimeballs go away, but asking for receipts is really just a bluff.

    If you didn't have licenses, a civil court could reasonably decide that the preponderance of the
    evidence shows you liable for damages. But to say you have licenses and obtained them illegally is a charge of grand theft, a criminal charge. They would have to prove this in criminal court, beyond the shadow of a doubt. No way they'd waste the money on that. IANAL, BIPOOTV.

    -Ryan C.

  • biter bit (Score:3, Interesting)

    by geoff lane ( 93738 ) on Thursday February 06, 2003 @04:39AM (#5238938)
    Who checks that BSA licenses are in order?

    Tell them to fsck off via a lawyers letter. Report them to the local BBB.
    Write a memo to management explaining the savings they would make by moving to Linux+OpenOffice, copy to Microsoft :-)
  • by Adi ( 18939 ) on Thursday February 06, 2003 @05:48AM (#5239103) Homepage
    The BSA seems like one of the flagships of globalisation, since it does the very same here, in Hungary.However not the BSA itself does this "investigation", but the police, usually with an "expert", who is of course trained and tought by the BSA.

    Unfortunately it does not receive enough publicity that it uses our tax and the police to enforce their member software firms' will on the public.

    Dictatorship is not your privilege anymore, my American fellows! :))
  • by DrSkwid ( 118965 ) on Thursday February 06, 2003 @05:54AM (#5239121) Journal
    They employed him.

    If he then performed duties that were not his the company made a mistake and have to pay to have the mistakes taken care of.

    I'm pretty sure that the company didn't have a lot of computers sitting there with no OS doing nothing and now have a lot of computers with an unlicensed OS installed sitting there doing nothing.

    Seeing as you are now in the responsible position it is your duty to uninstall those OS's.

    It's pretty simple really.

    And it is the law not the "rules", there is no hesitation.

    Still, if you install Windows what do you expect. It's when not if that day will come thay the decision will bite you in the ass.

  • Re:Thank you BSA (Score:2, Interesting)

    by fyonn ( 115426 ) <dave@fyonn.net> on Thursday February 06, 2003 @06:19AM (#5239176) Homepage
    By going OSS, you no longer have to waste much (if any) company time, resources, effort, or money on software compliance issues.

    actually, from what I've heard it doesn;t do that at all. not having any copyright software at all is even worse than having pirated software in the eyes of the BSA and they'll still "audit" you and probably make things very unpleasant. there are a number of stories floating round about the nasty kinda shit the bsa pull.

    dave

    PS. when rule the world it'll all be different I tell you, different...
  • Buh...let them come (Score:2, Interesting)

    by mousse-man ( 632412 ) on Thursday February 06, 2003 @07:20AM (#5239331) Homepage
    When they did this at my former employer, my response was pretty swift - I sent them a bill and a form to ask if they approved the hours I spend to catalog all the machines (about 1600).

    I never got a response back so far.
  • by Anonymous Coward on Thursday February 06, 2003 @07:25AM (#5239341)
    but these letters are NOT sent to only suspicious companies.. these letters are MASS MAILED to entire zipcodes. My company having 3 offices got 3 letters from them with 3 different addresses in 3 different months.

    It is a scam, just like all the other BSA practices. they are scumbags and need to be ignored and fought hard when they try to use their organized crime tactics
  • Re:BSA tactics (Score:3, Interesting)

    by zaren ( 204877 ) <fishrocket@gmail.com> on Thursday February 06, 2003 @07:59AM (#5239429) Journal
    In fact, here it is!

    http://m.doubleclick.net/viewad/821789/3ways2_12 k. gif
  • by dalslad ( 648100 ) on Thursday February 06, 2003 @11:00AM (#5240448) Journal
    Yes and no. A few years back, the IRS used to audit people and make it a horrible experience. The few neighbors you had that got an audit made it so sooooo bad, people stopped cheating. Then 60 Minutes did a feature on this lady dying of a heart attack in an IRS office (all she had was a W-2and a 1040A) and then people going into mental hospitals. Some people went to prison. Prison?

    BSA does audit, and they get you all upset because a few businesses got hammered in the local paper. Then they buy these big clean mailing lists of businesses and send out the letter. And people pay them.

    If you have any "former" friends, they can trigger an audit and then it's skid row. AND they are ruthless. Unyielding and mean. The legal fees can put a business out of business.

    Some guys have started a reform movement both in Europe and here. They say if this isn't tyranny, then what is?

    Have you bought or sold software on eBay? Think about it.

    Zap your hard drives and use free software. Their audit software picks up data even if you uninstalled it and reformatted your drive.

    No, it's not a scam and for those of us who've lived through it, you either pay the price or spend two years in a BSA hell. I fought it (legal background).

    The way to beat this is: do not download their stinking audit software. Do not respond to their letters. That will make any drop-by visits an invasion of privacy.

    Next, wipe your every hard drive and use a Microwave to melt their CD roms. (Dangerous unless you've made coasters before.) Get a big fence cutter and break any floppies you have.

    Get rid of everything.

    I was arrogant. I gave away my rights agreeing to their amnesty.

    I let them do an audit on us because we didn't have any M$ stuff. Woooops. A secretary had Windows 98 running. We paid for and produced receipts for all the software, but got hung up on an upgrade. We got something bundled with a piece of hardware, long since broke and gone. That software bundle costs thousands.

    Now, we knew the piece of hardware, we knew the box, the packing slip, had the receipt and the packing materials. But, noooooooooo, we were criminals.

    Use the grace period (hehe) and get rid of your stuff.But don't agree to or sign anything. And don't imagine your lawyer knows as much as the Boy Scouts of America (BSA - right?)

    Will they audit you? Will the IRS?

    Probably not. But do't think beause they have bigger fish to fry that they won't show up.

    You might get 5 out of 6 on your lottery ticket. Or 6 out of 7. If you get 7 out of 7 look out.

    Oh and if you do get a good lottery ticket, tell all your friends and they will buy thousands of lotto's. Heck, just get on stage on TV and thank everyone for contributing to you and lotto sales go through the roof.

    That's the BSA's theory.

    They're making big money!You think that $43 Billion Macrosoft has in the bank came from innovation? Innovation in the field of legal tyrany.

    BTW, you won't find any on my Post. I go around and Zap the drives of anyone in my company that uses the stuff.

    It's time for your Senator and Congressman to come to the aide of our Country and reform the damn copyright and patent laws.

    Jeeze.

    - Dal
  • by kavau ( 554682 ) on Thursday February 06, 2003 @12:28PM (#5241463) Homepage
    A former colleague, who now runs his own financial software company, told me that a very similar thing happened to his company. He received a letter from Microsoft, basically saying that his company has to round up the original media and license forms for all the Microsoft products they are using.

    After consulting with his lawyer, he sent a reply to Microsoft along the following lines: "We would be very happy to assist you in this matter, but since your request would take up a considerable amount of time of our employees, we will have to charge you accordingly."

    Microsoft's reply to this was: "Oh, well, never mind..."

    Does anybody have similar experiences? It seems perfectly legitimate to charge for any such burden imposed by another company. I wonder if there's a profound legal basis, however.

  • by msoftsucks ( 604691 ) on Thursday February 06, 2003 @02:10PM (#5242485)
    I'm a consultant and have been using the BSA fallout to convert the targeted away from all Microsoft products to open source. The companies are grateful, and I get another contract doing maintenance work for them as a follow on. Coupled with the new M$ licensing blackmail, most companies migrate away in a heartbeat.

Understanding is always the understanding of a smaller problem in relation to a bigger problem. -- P.D. Ouspensky

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