Software piracy risks lost on SMEs

Many small businesses are unaware of the risks software piracy poses to their organisations.

Nearly half - 41 per cent - of UK-based small and medium-sized enterprises believe there is no risk from using unlicensed software, according to a survey from the Business Software Alliance (BSA). And 85 per cent don't know that illegal software could make their networks and systems vulnerable to viruses.

And while 97 per cent of those questioned were confident all the software on their company systems is legal, around 27 per cent of UK businesses are thought to be using pirated software, suggesting a "severe lack of awareness regarding the level of illegal software in the workplace", the BSA said.

The anti-piracy organisation warns that businesses using unlicensed software can suffer financially, legally and operationally. Last year European SMEs faced average fines of more than £10,000 in 2006 when caught using pirated software - and left themselves open to suits over copyright violation, the group said.

In addition, because illegal software does not get the same support and patch updates as legal versions, businesses could put their data at risk of harm by using it.

To address these risks, the BSA advises SMEs to implement proper software management - such as regular audits and employee usage policies (as staff often download illegal software to their PCs from P2P and auction sites) - and licence management.