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Business Administrators And Software Licensing 12

Posted by Cliff from the stuff-to-read dept.
Gorbie asks: "It seems that there is a never ending battle between me and my company over software licensing. Whether I agree with the current laws pertaining to licenses, I adhere to them. My company is often unwilling to spend the necessary capital for the proper amount of licenses, and I get put in the position to either do what I am asked or risk major friction with my boss and the ownership of the company. Are there some licenses that I should worry less about? Client access licenses? Fonts? What are my risks?" When placed between the licensing and your boss, how do you handle your software?
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Business-Administrators and Software Licensing More

Business-Administrators and Software Licensing

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  • You had a pretty good troll going there until you got to the part about the RAM upgrade, and then the part about the UPS really gave it away.

    You should have entitled it "A Modest Proposal".

  • You have to understand that the boss in this case has an obligation to the company's owners and shareholders to maximize profits. The company management can be sued if they don't -- it's called fiduciary responsibility. This has been explained repeatedly on slashdot in the context of why Amazon had to sue to protect the one-click patent, why the MPAA had to after that Norwegian kid, and other issues. Try to read up on these things before posting.

    I think this person should be a little more understanding of the boss's position, and maybe even a little proactive. See if you can borrow some of this software from a friend who works somewhere else, and save the cost of even buying one copy. Another good one is to take the original copy back and get your money back, after making copies and installing it one every machine in the company. And afterwards, pay yourself a small reward -- go to the secretary's computer and help yourself to a RAM upgrade. You can sell it on ebay if you don't have any extra slots. I think your wife and children might be able to sue you if you don't make as much money as possible. People usually don't notice a missing UPS backup until the power goes out -- but they are very heavy; you can take this fiduciary responsibility too far and get hernia, so be careful.

  • Yeah, at first I was going to just stick with the first paragraph, but I got carried away. I can't believe that Bruce didn't read the part about being sued by your wife and children for not having enough money; how can you respond seriously to something like that ?
  • Am I correct in deducing that you advocate illegal acts to make the boss happier?

    The management does have a responsibility to the owners & stockholders, but part of that responsibility is to act legally (& ethically if the owners are decent people), so that the future viability of the company is not jeapordized by the current actions of management. That is, stealing today may save several thousand dollars, but it will cost tens of thousands in a few years when you are discovered and sued.

    It seems that if there isn't enough money to cover all of the software used, there is a serious management problem. Maybe Gorbie works for a startup that has very little capital (think free-beer software), maybe the management has heard too much about piracy & thinks that it is 'good', maybe some tough choices need to made about which software doesn't justify its cost. I don't envy you your problem Gorbie.

    Louis Wu

    Thinking is one of hardest types of work.

  • Well, if this is a large company, there should be some equivelent of an audit department. If so, I would immediately go above your boss and let them know the pressure you are getting to install software without the proper licensing. If you are dealing with a small company and your boss' word is ultimate law, you are dealing with more of an ethical quesiton. Do you value your job or your integrity more? Personally, I would tell my boss that I refused to install any software without licensing unless he gave me a written order to install it and it was all approved by him. If he did so, I would happily install the software and let "the man" come down on him. If he refused, I would be looking for another job.
  • People who do unethical things to save $100 probably treat their employees unethically, too. I'd not work in a situation that required me to act unethically. You don't have to, either.

    Bruce

  • You have to understand that the boss in this case has an obligation to the company's owners and shareholders to maximize profits.

    I guess I should state my background. I am president of Linux Capital Group [linuxvc.com], chairman of Progeny Linux [progenylinux.com], and chairman of another company that will be announced in a week or so. People have invested Millions in these companies. Thus, I have fiduciary responsibility.

    Amazon suing to protect the one-click patent was a questionable decision, but was not against the law. Cheating on software licenses exposes your company to civil liability and is also against a number of criminal laws.

    None of my stockholders would be able to prosecute a case that I have irresponsibly refrained from breaking the law, lying, etc., when such behavior would have saved them money!

    I also run Open Source businesses, and can justify that to the stockholders and in court, dispite what's been written on that topic here previously. The business plans are based on Open Source and the businesses don't succeed if we play fast and loose with the community.

    Thanks

    Bruce

  • Since software is intangible, it seems that people don't always realize that they can't copy willy-nilly everything. We're all susceptible to it, and I don't think anyone here can claim to be pure.

    That said, widespread, systematic piracy is Not The Right Thing(tm). If you're getting pressure to deliver something that contains unlicensed software, I usually proceed as follows:

    • If the requestor can produce a P.O. or some other internal document showing that the license has been put into the purchasing process (not just requested, but approved), I'll generally install it, with the admonishment to the person that they really need to think a bit ahead of time, and not do things at the last minute. I will then require that the person give me the software when it comes in. (Actually, I generally demand that the requestor send an email to Receiving (cc:'d to my boss and his boss) that the software is to be delivered directly to me, and NOT to the requestor - that way, I know it came in.)
    • If the previous becomes a habit, I generally start refusing to install stuff, period.
    • For people who start to make noise about me not getting stuff to them (due to their lack of proper licensing), I make sure that they've made a formal request for the item. I can then point to the request, and truthfully say: "It hasn't arrived yet." This works really well with higher-ups, if the person complains to their boss that I'm not being responsive, I have a perfectly valid (and documented) response.
    • If you work in a start up, don't forget you can call the funding V.C.s (if the company has any) for help as a last resort. They most certainly will back you.

    If these steps fail, and you're still getting pressure to install stuff illegally, I'd try to have the requestor walk over with you to Company Counsel (ie. the lawyer), or, if that's not practical, to the Comptroller, Internal Audit, or a very Sr. Executive. Calmly explain in the presence of both of them what you see as the problem. Remain calm, and don't use inflamatory language. But be firm.

    Should all this fail, you don't want to stay there. Period. Your management is not trustworthy, and they fail to show you any professional respect. Look for another job.

    If they threaten you or otherwise become really hostile - REMAIN CALM. Don't blow your top. Get out of the situation as gracefully as you can, and do the following immediately:

    1. Dump a full copy of all your email to someplace safe that you can protect - removable media, or better yet, a remote (ie, non-company) machine. At worst, create a Hotmail account and forward all your email there.
    2. If you can, make copies of all ordering documentation you have. Take the documentation with you that night.
    3. If you have it, make a copy of the current licensing level of the company. This will often be in a spreadsheet or database (like Excel or Access). Take it with you.
    4. The next day, find a lawyer. Do it.
    5. Give the company a couple of days to come to their senses. 2 or 3 is reasonable. If they don't, come to work with your lawyer. Talk to your boss with your lawyer present, and explain that you are quitting, effective immediately, and the reason why. Demand that they both pay the required software licenses AND pay you a severance package. Be reasonable for the severance, but be firm.
    6. If they refuse, leave. Period. Talk with your lawyer, and decide if you should report them to the local police. Or you can report them to the SPA anti-piracy hotline [siia.net]. Remember, that you will be covered under the Federal Wistleblower Act. If the company is found guilty, you are entitled to a significant portion of the assessed fine.

    Hopefully, you should never get that far. But talking to a good lawyer (particularly one in labor/employment law) is always an excellent idea.

    -Erik

  • To answer your last questions:

    "Are there some licenses that I should worry less about? Client access licenses? Fonts? What are my risks?"

    No, you should worry about all licenses. This is a matter of professional ethics. All licenses are equal. It may be easier to forget about certain ones (especially if those licenses don't require keys to unlock their use), but the ethics are the same.

    Risks are a complicated problem. In reality, the actual chances of getting caught are probably very, very small. However, the penalties can be big. Not only can the company face huge fines, but if a reasonable case can be made that you were professionally negligent (or complicit) in the lack of proper licensing, you can personally be held responsible, and face a hefty fine (or even possible criminal charges).

    If you're in a startup, at each new round of funding, V.C.s will usually do a full audit (it's part of due dilligence). You will probably get tripped up there. The auditors will require you to get all licensing up-to-date before signing off. Or they might not, and just give the company a thumbs down to the V.C. (and, hey, there goes that funding...) It's a useful lever to get management to come around.

    As it's been said, if management won't come around, then leave. You don't want to work for a bunch of crooks. Sooner or later, it will catch up with you in some form or other. So get out.

    -Erik

  • Before you go to Legal with claims, make sure you've got some email, or something tangible, /from your boss/, making it clear that he's the one requesting you do this.

    If you go to legal, and they're pals with your boss (possible), he'll deny the whole thing, blame you, and then HR's giving you a long lecture before firing you.

    You need to cover yourself. In case the company does get audited, you need clear proof that it wasn't your idea, and that you were acting on orders from above.

    Oh, and start looking for a new job. That doesn't mean you have to leave your current job, but better safe than unemployed.
  • The legal department is there for all employees who have on-the-job questions. Call up the corporate counsel and let him/her know that you have been asked to break the law on behalf of the company. See how he/she feels about it. Make certain they get a copy of the EULA, too..

    If the company is aboveboard, I suspect you'll get the correct number of licenses in a hurry, and your boss will avoid you for a while. If not, like 'Bruce' said, they'll screw anyone and everyone. Start looking elsewhere...
  • Erik is completely correct in his post above.

    My point is, that when this kind of question arises it is a sign of a nascent profession.

    Has anyone thought of drafting a code of ethics as per other professional bodies ?

    Cheers

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