More than half (52 per cent) of UK SMBs have bought or downloaded illegal software, claims research by the Business Software Alliance (BSA).

The anti-piracy body enlisted research company Vanson Bourne to oversee the survey, which polled IT decision makers from 250 UK SMBs.

BSA discovered that 41 per cent of the SMBs that admitted purchasing illegal software had reportedly fallen victim to identity theft or had their credit cards cloned (21 per cent).

Although 88 per cent of SMBs said the use of illegal software creates liability concerns, 21 per cent admitted using software key generators, which are programmes that generate an unauthorised registration key or serial number.

"The research suggest that a large number of UK businesses have an unclear understanding of what constitutes illegal software use, at best, and a blatant disrespect for copyright law and business ethics, at worse," said Michala Wardell, UK committee chair of the BSA.

The use of illegal software reportedly proved to be accidental for many of the SMBs that took part in the poll. For instance, after discovering their software was illegal, 51 per cent said they replaced it with a legitimate copy.

Furthermore, 27 per cent paid for a legal software key and 10 per cent uninstalled the software, without replacing it.

Handley Brustad, a joint lead officer for intellectual property at the Trading Standards Institute, said SMBs that use illegal software are exposing themselves to security threats.

"While we strive to bring down dishonest traders, we rely upon businesses to take proper precautions when purchasing their software," he continued.

Anti-piracy body the Business Software Alliance (BSA) has ordered a London-based building design company to cough up 3,000 in damages for the alleged use of unlicensed software.

Kyson Design is reported to have stumped up the cash after an unknown whistleblower reported the firm to the BSA.

The company was then ordered to carry out a self-audit, which resulted in the discovery of unlicensed Adobe, Autodesk and Microsoft software.

IT Pro contacted Kyson Design for comment, but had received none at the time of writing.

Michala Wardell, chair of the BSA UK Committee, said people need to be aware of the consequences of IP infringement.

"While many businesses may not mean to infringe copyright law, they do need to take responsibility for any negligence on their part. Rather than cutting corners to save money, now is the time to be even more diligent as every penny counts," she said.

"Even though 3,000 may not seem like a particularly substantial loss, for smaller companies such as Kyson Design, it can be much harder to absorb unforeseen losses in an economic downturn."

Julian Swan, director of compliance marketing for EMEA at the BSA, added: "Apart from the financial risks of being found with unlicensed software, there are also potential security threats to bear in mind.

"Unlicensed software is not always fully protected from malware and can lead to downtime, which wouldn't reflect positively upon a company's professionalism and ability to respond to client demands," he concluded.

The Business Software Alliance (BSA) has reached a settlement with an East Yorkshire-based design agency found using unlicensed software.

Web Market Solutions paid a 6,500 fine, as well as an additional 4,500 in licensing costs to bring it into line with the BSA's rules.

The anti-piracy body received a complaint about the firm, prompting it to carry out a self-audit, which confirmed the presence of unlicensed software.

The Yorkshire region has come under intense scrutiny from the BSA, who recently asked 1,500 businesses in the region to prove they have licenses for their software.

Philippe Brire, chair of the BSA UK committee, said: "Companies must recognise that the abuse of intellectual property (IP) rights is a serious offence and can have severe consequences.

"Companies, such as Web Marketplace Solutions rely on a sound reputation, and settlements can seriously damage the company's standing and are evidently costly," Brire added.

The BSA published the findings of its annual Global Software Piracy Study last month, which found that the UK had a software piracy rate of 26 per cent in 2011. Meanwhile, the commercial value of this pirated software was estimated to be 1.2 billion.

Julia Swan, director of compliance marketing for EMEA at the BSA, added: " Effective Software Asset Management (SAM) can highlight cases of over and under licensing within a business, making sure the organisation is running as efficiently as possible."

Anti-piracy body the Business Software Alliance (BSA) wants the Government to introduce tougher penalties for businesses caught using unlicensed software.

Citing figures from the latest edition of the BSA's Global Software Piracy Study, the group claims the commercial value of pirated software in the UK topped 1.2 billion last year.

Software should be the thing businesses invest in, not scrimp and steal.

The report was jointly compiled by the BSA, IDC and Ipsos Public Affairs and featured responses from 15,000 computer users across 33 countries.

It also claimed that 27 per cent of UK computer users admitted to using pirated software, while 77 per cent said the risk of getting caught offered little deterrent.

The research also claims that, across Europe, business decision makers are more likely to pirate software and misuse licenses than other types of users.

As a result, the BSA wants firms caught using pirated software to face larger financial penalties to compensate the IT industry for the unlawful use of its intellectual property (IP).

Robert Holleyman, president and chief executive of the BSA, said: "Software piracy persists as a drain on the global economy, IT innovation and job creation.

"Governments must take steps to modernise their IP laws and expand enforcement efforts to ensure [people] who pirate software face real consequences."

Across the globe, the commercial value of pirated software rose from $58.8 billion in 2010 to $63.4 billion last year, the study revealed.

The emerging economies were pinpointed by the BSA as being the driving force behind much of this piracy, as these countries now account for 56 per cent of the world's new PC shipments.

China was reported to have the "most troubling" piracy problem, as the illegal software market was valued at nearly $9 billion, which is three times the value of the legal software market.

The cost to business of Chinese counterfeiters was the subject of a recent IT Pro report, which highlighted the sale of fake iPads and Windows 7 software in the country.

Julian Swan, director of compliance marketing for EMEA at the BSA, said the study suggests the need for a fundamental change in how people view and acquire software.

"Software should be the thing businesses invest in, not scrimp and steal. Anyone who uses software they haven't paid for should face hefty consequences," he said.

Kaspersky has announced it is leaving the Business Software Alliance (BSA) over the latter's support of the US Stop Online Piracy Act (SOPA).

The Russian security firm said it will not renew its membership come January next year, even though the BSA has something of a mixed stance on the SOPA legislation.

SOPA could ask ISPs to monitor traffic and potentially block access to websites that are breaking copyright law, in much the same way the UK's Digital Economy Act proposed.

We are very disappointed to learn that Kaspersky Lab may not renew their membership in BSA, especially given we share many of their concerns over SOPA.

"Kaspersky Lab is occasionally mentioned in the discussion as a member of the Business Software Alliance (BSA), which supports the SOPA initiative," a Kaspersky spokesperson said.

"Kaspersky Lab would like to clarify that the company did not participate in the elaboration or discussion of the SOPA initiative and does not support it. Moreover, the company believes that the SOPA initiative might actually be counter-productive for the public interest, and decided to discontinue its membership in the BSA as of 1 January 2012."

The BSA said it actually shared some of the views of the security giant on SOPA.

"We are very disappointed to learn that Kaspersky Lab may not renew their membership in BSA, especially given we share many of their concerns over SOPA," said Katherine McGuire, the BSA's vice president of for Government relations.

"Kaspersky has been a valued member of BSA over the past two years, and we look forward to working with them again in the future."

BSA was initially in support of the SOPA, but in November announced a number of concerns.

"We do not have an affiliation with CarrierIQ. Android is an open source effort and we do not control how carriers or OEMs customize their devices," it said in a blog post.

"Valid and important questions have been raised about the bill. It is intended to get at the worst of the worst offenders. As it now stands, however, it could sweep in more than just truly egregious actors."

The Business Software Alliance (BSA) has bared its teeth this week, charging the Salamander Organisation for using unlicensed software.

The York-based company has agreed to pay 29,000 to cover a settlement of licence fees to date, as well as ensuring it had paid for the software going forward. The type of software used has not been disclosed.

Salamander was caught out after an anonymous tip off to the BSA, followed by a software audit on the firm.

The BSA is currently shining a spotlight on Yorkshire to seek out those avoiding paying licences, claiming it does "substantial" damage to the UK economy.

Michala Wardell, chair of the BSA UK Committee, claimed the cost to businesses using unlicensed software was in excess of 2 million in fees and legal settlements last year double the amount from 2009.

"Businesses must be aware that enforcement action will be taken against any company found using unlicensed software," she said. "The abuse of intellectual property rights is a serious offence, and will not be accepted."

"Settlements such as this can seriously damage a company's reputation if they are caught out and can be costly."

A recent study by the Alliance claimed reducing the current piracy rate of 27 per cent down by 10 per cent over four years could create 5.4 billion in "new economic activity" and 1.5 billion in new taxes.

"Unlicensed software often occurs when a company's management regards software licensing as an IT problem, rather than treating their software as a business asset," said Julian Swan, director of compliance marketing in EMEA for BSA.

"It is crucial for companies to implement software asset management best practices and take advantage of the tools available from software vendors to ensure that their software licensing is in order."

Tougher financial penalties should be dished out to those who steal intellectual property (IP), according to the Business Software Alliance (BSA).

The current legislation does not go far enough to deter would-be IP thieves, the BSA has claimed, urging Government to make changes.

Global software piracy grew by 14 per cent hike during 2010, according to BSA figures published as part of its Global Software Piracy Study.

The research, carried out in partnership with analyst firm IDC suggests unlicensed software worth 1.2 billion was installed across the UK last year.

"The current damages law isn't tough enough to deter those businesses that still think it is acceptable to use unlicensed software. The Ministry of Justice acknowledged this in 2007, suggesting this issue would be addressed, but no progress has been made to date," said Sarah Coombes, senior director of legal affairs for the BSA in Europe, the Middle East and Africa (EMEA).

"Legislation that strengthens the availability of court awarded damages would act as a deterrent for those that continue to use illegal software. The UK IT industry is a dynamic sector that supports almost 600,000 high-skill, high salary jobs and contributes billions of pounds in taxes each year, and we need tougher IP laws to protect it."

The finger of blame has been pointed towards emerging economies, whose fast-growing PC shipment numbers have not helped the situation.

At a time when global awareness of IP rights is argued to be higher than ever, it appears that pockets of software piracy are still bubbling away. A survey of roughly 15,000 PC users in 32 countries conducted by Ipsos Public Affairs found that many users often fail to realise they are using unlicensed copies.

"The software industry is being robbed blind," said BSA president and chief executive Robert Holleyman.

"Nearly 36 billion worth of products were stolen last year - and the rates of theft are completely out of control in the world's fastest-growing markets. The irony is, people everywhere value intellectual property rights, but in many cases they don't understand they are getting their software illegally."

Holleyman suggests that software piracy is an economy wide issue that directly impacts businesses outside of the tech sector.

Highlighting the fact that all commercial entities need to rely on properly licensed versions of software to control their live production systems, he argues that those who are legit are being unfairly undercut when their competitors avoid overhead costs by effectively stealing.

The hard facts' uncovered by the 2010 BSA Global Software Piracy Study show that while PC shipments to emerging economies in 2010 accounted for more than 50 per cent of the world total, paid software licences in emerging economies accounted for less than 20 percent of global sales.

Media sources including the Financial Times and The Economist define the planet's emerging economies as regions including several Asia-Pacific and Latin American countries. Also singled out are nations such as China, South Africa, Taiwan and Mexico and here in Europe, Hungary and Poland are under the spotlight. But this list is by no means exhaustive.

"The software industry is doing everything it can to promote legal software use," Holleyman said. "We need governments to step up their efforts on this issue by supporting public education efforts, enacting and enforcing strong intellectual property laws and leading by example."

The UK has the sixth lowest rate of software piracy in the world, with the country's installation level of such products remaining stable.

Despite this ranking, from 2008 to 2009, 27 per cent of all software units installed in the UK were unlicensed, costing the UK 1 billion, according to a report from the British Software Alliance and analyst firm IDC.

The BSA has now called for greater work to go into cracking down on the illegal activity, even in light of the nation's comparatively good position.

A double-edged sword

Michala Wardell, chair of the BSA UK Committee, said the research figures have both positive and negative connotations for the UK.

With the growth of the consumer PC market, an area where higher piracy rates would be expected, it is good news that the level of unlicensed software installation did not rise, Wardell told IT PRO.

"In that respect, it is a real positive that we have kept it stable because with that market growing, they don't have the same mandates that a business has in order to manage their software effectively and legitimately."

However, Wardell noted there are still many that need to be educated on the issue.

"With the way the digital environment is going, this is going to be an even bigger job. More and more people are positively embracing technology, which is fantastic, and using more and more digital downloads. But we need people to be aware of the dangers that are involved and make sure they are sourcing their products from the correct places," he said.

"We are not seeing enough improvement here in the UK," he added.

Not all doom and gloom

Despite calls for industry and the Government to do more, both have been proactive in addressing concerns over pirated software.

The BSA study reported on how vendor legalisation initiatives, education campaigns and enforcement actions have all helped to drive piracy down. Furthermore, Wardell had praise for the Digital Economy Act, which the BSA supports. However, she said that more negotiations still need to be carried out over "technicalities".

"As long as those can be delivered in an appropriate manner, then obviously it is a fantastic thing and just needs to be adopted and embraced in the right way that benefits all parties."

She added that the right support needs to be given to government agencies so that the UK remains a strong "protector of IP".

Research has shown the potential rewards of cracking down on unlicensed software use. A 2008 study from the BSA and IDC suggested that cutting the software piracy rate by 10 percentage points over four years could contribute 4.46 billion to the UK economy and create 13,600 jobs.

A global issue

In terms of an economic impact, the use of unlicensed software appears to have significant consequences for all nations involved. Globally, the commercial value of pirated software was $51.4 billion, according to the research.

What also emerged was a correlation between rapidly growing countries and the use of these unlicensed products. China, Brazil and India - all burgeoning economic forces significantly contributed to the global piracy rate increase.

"Those countries are growing day by day and really booming. However, one or two of them in particular are known to have high piracy rates," Wardell added.

Have you cut staff lately? Maybe had a bit of a pay freeze? And to save more cash, you're using pirated software?

The Business Software Alliance (BSA) is looking to get your attention and that of your cash strapped employees.

The anti-piracy group has doubled its reward for reporting the use of illegal software, in order to "encourage employees in London to report their companies if they think they are using illegal software," the firm said in a statement.

The reward has now hit 20,000, but just until the end of the year.

If that's not enough to have you looking over your shoulder at that IT worker you just handed notice to, the BSA also revealed the results of a survey, which showed 70 per cent of London workers would turn in their bosses over "improper business practices."

Another one in five would be more likely to point the finger at their firm if they needed extra cash for Christmas that 20,000 could buy a lot of presents for under the tree.

And some 40 per cent would be likely to tell on bosses if they had just been made redundant.

"Many cash-strapped employees are willing to supplement their earnings in the run up to Christmas by reporting illegal business practices, and the affects of the recession are making them even more likely to expose corporate wrongdoings," claimed Alyna Cope, spokesperson for the BSA UK Committee, in a statement.

But it's not all about revenge or buying presents, Cope claimed. "Nearly half of those we surveyed also think their company should face legal action for using illegal software."

Cope noted the BSA is already investigating a few London companies for using "unlicensed" software, and claimed London businesses are using 149 million of pirated programmes each year.

If your boss is up to no good or you've been made redundant and need a few spare quid the BSA offers a confidential online reporting tool here to make your financially motivated finger-pointing even easier.

War has been declared on software piracy in London by the Business Software Alliance (BSA).

The BSA announced a two-month campaign where it will call upon London businesses to eliminate software piracy, directly contacting over 1,000 companies to offer a software health check' where they complete a simple self-audit form.

The check is supposed to ensure that software is legal and licensed. IDC research released to coincide with the campaign suggested that London businesses were installing pirated software worth 149 million each year.

It was also said that London was responsible for more software piracy than anywhere else in Britain, with one in five pieces of software illegal.

The BSA claimed that software piracy was a big threat to businesses, and that it was already investigating several companies in London for using pirated software.

It also said that legal proceedings would be costly in the current economic climate, and that pirated software could damage IT systems.

"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," said BSA spokesperson Alyna Cope in a statement.

She added: "We need to ensure resource and expertise is not being list at the base of the sector."

The BSA has constantly fought against piracy, but some have also asked questions about the possible benefits of piracy.

Pirated software is costing businesses as much as 16 million a year, according to the Business Software Alliance, suggesting that the shady cheaper alternatives have hidden unfortunate and embarrassing costs.

The BSA took 294 legal actions on behalf of its members in the UK. It said that more than 3,000 legal actions were conducted in 2008 across Europe and Africa, as a result of 5,546 leads. On average, 460 businesses are reported to the BSA a month. Across EMEA, almost 6 million worth of damages was paid out in 2008, while 10 million was spent on legal costs and software replacement.

Julian Swan, the BSA director of compliance marketing for Europe, Middle East and Africa, said: "The figures demonstrate the severity of the software piracy issue in the UK, which remains at an unacceptable level."

Swan added: "We urge companies to recognise the dangers of using illegal software, and warn those deliberately flouting the law that we will be ramping up our enforcement operations in the months ahead. Aside from the financial consequences, using unlicensed software carries a number of operational risks, such as vulnerability to viruses which cause downtime, security threats and data loss, as well as damage to reputation if caught."

"Companies using legal software on the other hand benefit from vendor support, services and upgrades, which help businesses run as securely and efficiently as possible," he said.

Sarah Coombes, the BSA senior director for legal affairs, said: "In an effort to crack down on piracy, we will continue our worldwide effort to identify companies which flout the IPR laws. In uncertain economic times businesses should protect their assets, rather than use the unstable market as an excuse to cut corners."

The Business Software Alliance (BSA) has today revealed out-of-court settlements have been agreed with several UK companies which were investigated for alleged use of illegal and unlicensed software.

The BSA enforcement team is claiming victory in tracking down the infringing firms - London-based Blitz Corporation, Genetics Limited of Ludlow, Sheffield-based MTL Group and Modular UK based in East Yorkshire - after being tipped off by informants who contacted the BSA via its website.

All four firms had reached what the BSA said were undisclosed, but "significant settlements running into tens of thousands of pounds" for flouting software licensing laws."

Offences ranged from running unlicensed copies of Adobe, Microsoft and Quark software on some 15 PCs, in the case of martial arts supplier, Blitz Corporation. Further investigation revealed it was also illegally using original equipment manufacturer (OEM) editions of Microsoft Windows XP and Windows Vista, as well as unlicensed student editions of QuarkXpress Passport and Adobe CS3 Master Collection.

Genetics Limited, a medical research company, and Modular UK Building Systems were found to be running illegal copies of Microsoft Office and Adobe and Autodesk software respectively.

And MTL Group, a company that specialises in contract manufacturing in the metal sector, was investigated for the alleged under licensing of several copies of Autodesk AutoCAD.

Sarah Coombes, BSA's European senior director of legal affairs, said software is often the most valuable business assets a company has. But, if not managed appropriately, it could be more costly to brand reputation and the cost of ownership than necessary.

"The BSA takes a firm line against the disregard of software licensing regulations," she said, adding that recent high-profile campaigns in Glasgow and Manchester have aimed to raise awareness of the risks of using illegal software, from both a legal and enterprise security standpoint.