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UK Compliance Laws Are Driving Down Software Piracy

by Robin Pilgrim, LawAndTax-News.com, London

27 September 2004

In an interview with technology news service, Silicon.com, managing director of Microsoft UK and vice-president of the firm's European operations, Alistair Baker revealed that tighter compliance and accounting regulations recently introduced in the United Kingdom have had the side-effect of reducing software piracy in the business community.

"Governance is changing the way companies think about software as an asset and how they account for it with auditors," he observed, continuing: "If somebody has unlicensed software, that is a liability."

However, Mr Baker went on to reveal that although increasingly stringent company audits are forcing larger firms to be more transparent regarding their software use, small and medium-sized enterprises (SMEs) still present something of a problem for the software industry in terms of their use of counterfeit products.

"With enterprise and middle market customers governance requirements are now very tight. In small business there are millions of customers so therefore there is a higher percentage of piracy," he explained to Silicon.

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