As my business grows, it is becoming hard to keep track of software installed on different computers. I’m worried about breaking software licence agreements and what problems this may cause.
You’re right to think about this. If software is used illegally, a company director can be liable for up to two years imprisonment. There are also plans to make businesses caught using unlicensed software pay compensation to software developers.

That’s a pressing matter then! But how can I know what employees are downloading onto each machine? Surely I can’t be liable for unlicensed extra software that I haven’t sanctioned?
Yes you can. There are ways of finding out what software is on your computers, and also ways of solving the problem. In other words, there’s no legal excuse not to do it!

Can you clarify what kinds of software licences are available, and how this works?
Sure. With Microsoft on a product such as Microsoft Office, the simplest format is you buy a box product, which comes with all the discs.

Do I really need to buy a box product for each computer that will use it?
No. If you have a number of computers to cater for (say upwards of five), then it is often better to buy a corporate licence. You tell the vendor how many users you have, and make a purchase for that number. You then need only one set of discs, from which you can load the same package on to each computer.

Is it cheaper?
It depends – not necessarily in terms of purchase cost, but it is much more convenient and there are operational savings. Many licence agreements allow you reduced cost upgrades on the software for period of time. Many also offer a one or two-year assurance on the software as an add-on, which guarantees free upgrades during the life-span of the contract.

Are there any other ways of saving money on software?
One way is to buy OEM software. This can be as much as 50% cheaper than the boxed product.

What’s that?
OEM stands for original equipment manufacturer. This means the software can only be supplied with a new computer or hardware upgrade.

Sounds good. I need to upgrade the computers soon, so perhaps I’ll get that
Before you do, there are some disadvantages to OEM.

Such as?
The software lives and dies with the machine. It cannot be removed or transported to any other computer. You must also keep the particular CDs for that computer if there are any problems.

I see. And if I have many computers, I can anticipate confusion with lot of sets of CDs to worry about.
Precisely. So you may be better off with the licence agreement. You can also move it on to other machines when upgrading, and often they give you a two-in-one package – allowing you to use the same software on both your work and home computers.

That’s handy. Any other advantages?
Yes. Sometimes corporate licences also come with some extra handy features, such as extra Outlook features (see our Useful Outlook Features file update here). For larger companies, with over 250 users, Microsoft also offer a selection of enterprise agreements, where you can lease a licence to use the software, instead of getting a perpetual (never ending) licence, which could also mean large savings.

That’s good to know, but let’s say someone has added an illegal copy of Adobe Photoshop on to their computer.
How can I find out about this unlicensed software at the office?
Simple. A dedicated software auditing package will create a definitive index of what programs are installed on each of your computers.

Brilliant. And my legal position?
There’s software for that too. It will track your licences and keep you informed about renewing them. Microsoft also offer a Volume Licensing Recommendation Tool, to help you find the best options.

What else should I know about?
Two sorts of software are commonly forgotten. Software on your server is just as bound by licensing conditions as Microsoft Office. Fonts are also something that should be purchased and licensed too. If you want to find more about that check out the BSA website, which advises you on how to track down unlicensed software.

Thanks. You’ve given me licence to act on it straight away.

Back to Index