London Businesses Use Illegal Software Worth GBP150m Each Year

by Jason Gorringe, Tax-News.com, London

05 June 2009

The Business Software Alliance (BSA) has announced the start of a two-month campaign which calls upon London businesses to eliminate software piracy.

According to the BSA, London is responsible for more reports of software piracy than any other place in the UK, with one in five pieces of software in the capital being used illegally, according to figures released on June 1.

The research from IDC, launched to coincide with the campaign, finds that London businesses are installing pirated software worth GBP149m (USD245m) each year.

The BSA is launching a regional initiative to raise awareness of software piracy’s impact on businesses and the local economy, and informing companies about the benefits of effective management. This follows similar successful campaigns in other illegal software hotspots, Glasgow and Manchester.

The BSA is directly contacting over 1,000 London companies to offer a ‘Software Health Check,’ encouraging them to complete and return a simple self-audit form. This will ensure the software installed is legal and licenced in a way that guarantees they are getting value for money.

Software piracy represents a significant threat to businesses and the BSA is already investigating several companies in the London area for using unlicensed software. As a result, these businesses face the prospect of legal proceedings and the BSA is urging other businesses to avoid being subject to the same fate.

In the current economic climate, London’s businesses cannot afford to waste money on legal actions, subsequent financial settlements and the unplanned purchase of legitimate software. Unlicenced software can also mean firms are exposed to major threats to their IT systems, including security and software failure, file corruption and data loss, in addition to the considerable and potentially irreversible damage to a firm’s reputation after getting caught.

Alyna Cope, spokesperson for the BSA country committee, explained:

“The current downturn in the economy does not negate the need for businesses to keep the software they are using up-to-date and legal. We want to promote the value of software and educate businesses in the capital on how it should be better managed, helping to save them money at a time when it is most needed and reducing the risk of facing legal action further down the line.”

The body went on to explain that there are, however, wider implications for London’s economy; software piracy drains revenues that technology and creative companies would otherwise invest in R&D and jobs, stifling growth and development in a sector that employs over half a million people and is responsible for 20% of job creation in the capital each year.

Ms Cope continued:

“We urge London businesses to come forward and ensure that their software licencing is up to scratch, checking all software - from office productivity suites, to design packages and fonts. Software piracy deprives developers of the rewards of their work and innovation, with the greatest financial impact felt by smaller firms and start-up software companies, and we need to ensure resource and expertise is not being lost at the base of the sector.”

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