Firms face criminal charges over unlicensed software

Businesses are being urged to grass each other up as part of a new crackdown on unlicensed and pirate software by the Federation Against Software Theft (FAST) that could see firms face criminal prosecution.

FAST claims the current pressure on IT budgets and the ineffectiveness of civil litigation against offenders are behind industry statistics from the Business Software Alliance that showed piracy levels rose in 2002 for the first time since 1994.

The civil process, which is most commonly used, carries less severe penalties and offers companies the chance to settle out of court. Instead, FAST says it will report organisations that it believes to be in serious breach of copyright to the police. Under powers available through the Copyright, Designs and Patents act, FAST will then be able to work with the police to obtain a search warrant to carry out raids on the premises of suspected offenders.

Julian Heathcote Hobbins, senior legal counsel for FAST, told silicon.com the change of tact is necessary.

"We feel that civil action hasn't been working. People just aren't taking it seriously enough. They think 'it'll never happen to me... we can get away with it'. If people have a compliant environment they have nothing to fear," he said.

He dismissed comparisons to past high profile, aggressive campaigns by the Business Software Alliance and would only admit to sharing a "common goal". But he warned that firms with an illegal software environment should "fear" the new approach.

"If you'd spent the time and money getting compliant and someone else was blase, then a user may well put in the call to us," he said.

One CIO spoken to by silicon.com said that while compliant organisations are keen to see others should not gain an unfair advantage by not paying, the software companies should also shoulder some blame.

"Show me an operating system which quickly and easily lists all installed applications and their licences? - Surely FAST should suggest this to Microsoft."

He added that UK firms are also being hit with the full price for software while countries in the Far East with massive rates of piracy are being 'rewarded' with price cuts.

"Microsoft recently announced severe price reductions in these countries to encourage people to buy the genuine product. So now we have companies in the UK being prosecuted, whilst companies in other countries are forgiven and offered cheap software," he said.