Copied Software Costs Three New Jersey Companies More Than $400,000

Washington, DC (16 December 1998) -- The Business Software Alliance (BSA) today announced that three New Jersey companies have agreed to settle allegations of copyright infringement arising out of software programs installed on office computers.

* Gemini Industries, Inc., a custom electronics packaging wholesaler headquartered in Clifton, New Jersey, agreed to pay BSA $275,000 after an investigation revealed unlicensed copies of software programs published by Microsoft, Novell and Symantec installed on its computers.

* General Spice, a spice manufacturing company headquartered in South Plainfield, New Jersey, agreed to pay $35,000. BSA’s
investigation revealed unlicensed copies of Lotus and Microsoft software.

* The Gillespie Organization, an advertising agency headquartered in Lawrenceville, New Jersey, agreed to pay $125,000. BSA’s investigation revealed unlicensed copies of programs published by Adobe, Microsoft and Symantec.

These investigations began with a call to BSA’s anti-piracy hotline – 1-888 NO PIRACY. In each case, the companies conducted self-audits of their computer software and confirmed that there were more copies of various software products than they had licenses to support. In addition to the settlement payments, each company agreed to delete all unlicensed software, purchase replacement software and strengthen its existing software management policies.

“BSA commends all three companies for promptly stepping up to the plate on this issue,” stated Bob Kruger, BSA’s vice president of enforcement. “These settlements illustrate that it costs more to copy software than to be in compliance with licensing requirements. All businesses ought to add software copyright compliance to their checklist of important issues to monitor in the workplace – right alongside occupational safety, equal employment and environmental requirements. There’s no reason to look at it differently,” added Kruger.

“We at Gemini were surprised and distressed to discover unlicensed software programs on our office computers,” said Lou Rimblas, MIS Director. “As a result of this experience, we are redoubling our efforts in the areas of software management and education,” concluded Rimblas.

“Gillespie supports the rights of software publishers to be compensated for their works,” said Suzanne Brown, CFO/Managing Partner at Gillespie. “Much of the licensing shortfall in this settlement is attributable to inadequate document retention procedures. Gillespie is glad to have had this opportunity to correct this problem and has implemented a sound software management program to ensure that all installed software programs are fully documented and legal,” added Brown.

About the Business Software Alliance

BSA, the software watchdog group that investigates companies suspected of software piracy, has collected more than $35 million dollars over the past five years from companies in the U.S. that have been caught with copied software. Most of BSA’s investigations begin with a call to its hotline, 1-888 NO PIRACY, from employees and former employees who want to report software piracy.

Software piracy is an enormous drain on the global economy according to the “1997 Global Software Piracy Report” released this past June. The report estimates worldwide losses to software piracy of $11.4 billion in 1997, up from $11.2 billion in 1996. Software piracy also has a significant impact on the high tech industry, resulting in lost jobs, decreased innovation and higher costs to consumers.

According to the report, 4 out of every ten software applications worldwide were stolen in 1997. The U.S. had the highest total dollar losses to software piracy at $2.8 billion. Software is the third largest industry in the United States, employing more than two million people.

Establishing Effective Software Management in the Workplace

In addition to enforcing U.S. copyright laws, BSA educates business leaders about the need for effective software management in the workplace. To avoid software piracy, BSA recommends the following steps:

• Adopt a corporate policy on compliance with copyright laws;
• Audit company computers;
• Document software purchases;
• Understand licensing agreements; and
• Educate management and employees of their obligations under copyright laws.

Useful Products and Tools Available

BSA’s Guide to Software Management can be ordered by calling its toll-free anti-piracy hotline, 1-888 NO PIRACY or by downloading it from BSA’s website at www.bsa.org/freeware.

Since 1988, the Business Software Alliance (BSA) has been the voice of the world's leading software developers before governments and with consumers in the international marketplace. Its members represent the fastest growing industry in the world. BSA educates computer users on software copyrights; advocates public policy that fosters innovation and expands trade opportunities; and fights software piracy. BSA worldwide members include Adobe, Autodesk, Bentley Systems, Lotus Development, Microsoft, Novell, Symantec and Visio. BSA websites: www.bsa.org; www.nopiracy.com.