How to respond to a bsa or siia software audit letter without an. Dod esi software self audit checklist esimil version 1 software self audit checklist an introduction to software self audits a software audit is a defensible comparison of the actual software programs, quantities, and uses within an organization measured against the contractually authorized software programs, quantities, and uses. The bsas response provides its interpretation of the selfaudit materials and applies a formula for its initial settlement proposal. Alliance health compliance provider self audit 5200 w. If the company ignores microsoft s request for a selfaudit or refuses to comply, the issue may be turned over to the business software alliance bsa and the company may be subjected to a formal audit.
Jan 28, 2014 auditing used to be carried out primarily by the vendorfunded business software alliance bsa, but thats changing, according to dawson stoops, a cofounder and vp of sales at express metrix. The business software alliance is not afraid to audit your companys software assets and make you pay. Baseline shows you how to avoid them altogether in 8 easy steps the fear of a. If you are not sure where your company stands, your should self audit your business to make sure you are compliant sam, and make sure you can prove, to the. We have helped many companies from across the united states save their businesses from bankruptcy. In the overwhelming majority of cases, the business software alliance pursues the self audit approach.
How to respond to a bsa or siia software audit letter without. All of our cases begin with somebody who comes to us to report. A selfaudit consists of a listing of all bsa member software running on a companys computer networks, appropriate indicia of. The requested audit is meant to uncover unauthorized installations of ed software with the intent of recovering damages on behalf of the bsa owner. Jul 31, 20 these are the rights that the business software alliances enforcement department is attempting to protect. If youve been issued a llc audit it may be best to consult an attorney.
The audit is used to determine if all the software available for use is properly licensed and paid for by the business. What i learned in the last 10 years defending bsa the. If you do receive an llc audit, do not simply accept the audit terms, process, and results. The business software alliance bsa bullies small companies that cant present the single piece of evidence it considers acceptable as proof of software ownership. The bsa has requested that our company completes a selfaudit. The bsas typical approach is to, at the first instance, demand businessowners to complete a voluntary selfaudit, where business owners must produce a full index of all bsamember software running on that business network, and provide receipts or other proof of licensed ownership of such software.
Listen to attorney steve explain this topic on our vondran legal hour podcast. Our company already conducted a selfaudit and submitted the. Software license audits come in multiple flavors computerworld. For the last ten years, i have been representing enduser companies nationally in software audit matters initiated by major software publishers including microsoft, adobe, autodesk, ibm and their trade groups. Business software alliance collects record settlement. Bsa licensing audits following on from my post about microsoft licensing options, i thought it prudent to cover what may happen if your licensing isnt in order and you end up getting.
Mar 12, 2016 is it the business software alliance bsa, or the software information industry association siia these are two of the large software trade groups that routinely audit business. An llc notice is sent to the organization from the bsa before conducting an llc audit. If you decide to conduct a selfaudit, it will presumably be performed by a member of the software users it staff. Understanding the importance of the audit effective date in a bsa audit matter is the first step to a successful outcome. Bsa the software alliance s primary enforcement tool is to send a threatening letter indicating that an investigation has commenced and offering to forego litigation if the target company provides a self audit. If your company would ignore a self audit request or refuse to comply, the case may be turned over to the business software alliance officially bsa the software alliance. I am an intellectual property attorney in southlake, texas who has handled more than 230 business software alliance audit matters for small to mediumsized companies. A business software alliance bsa audit is usually initiated with a letter from the bsa stating that an investigation has been started on your business and that you should comply with a self. Acting either through an internal enforcement attorney or an outside law firm, the bsa will send a letter to the target company requesting a self audit. The software alliance, also known as bsa, is a trade group established by microsoft corporation in 1988 and representing a number of the worlds largest software makers and is a member of.
Responsible business alliance formerly the electronic. After the selfaudit materials are submitted by the target of a bsa audit, the business software alliance typically takes three to six months to respond. Learn about bsas work on responsible ai, protecting consumer privacy, strengthening cybersecurity, promoting crossborder data, and helping people train for the future. Failing to fully understand the bsa audit requirements often results in the assessment. Have you received an audit letter from bsa business. Bsa the software alliances primary enforcement tool is to send a threatening letter indicating that an investigation has commenced and offering to forego litigation if the target company provides a selfaudit. The usbased business software alliance bsa, an industry group representing the worlds leading computer software developers, ranked lebanon in 39th place worldwide and fifth in the middle east and north africa region mena in terms of piracy rate in 2009, as reported by lebanon this week, the economic publication of the byblos bank group. A self audit consists of a listing of all bsa member software running on a companys computer networks, appropriate indicia of. After the self audit materials are submitted by the target of a bsa audit, the business software alliance typically takes three to six months to respond. Nov 21, 2014 conduct any selfaudit under the direction of legal counsel. In 2008, the business software alliance received more than 2,500 reports of illicit use of software by companies in the u.
Bsa the software alliance fullservice business law firm. If the bsa takes action and a company is found to be noncompliant, the fine is often two to four times the license cost for each instance. The business software alliance is a private trade organization with absolutely no independent law enforcement authority. The software alliance audit procedures bsa audit defense.
If they want an audit, the reply to the request should note that you have privileged and proprietary information on your machines, that supervising the audit to ensure the security of this. Financial audits are perhaps the most wellknown, as financial audits are conducted for the accounting. Bsa the software alliances primary enforcement tool is to send a threatening letter indicating that an investigation has commenced and offering to forego litigation if the target company provides a self audit. Royer, cooper, cohen, braunfeld, llc represented the bsa. Microsoft software audits and sam assessments network. These audits that are handled by the business software alliance bsa. If your business runs software published by microsoft, adobe, autodesk, ibm, oracle you may be at risk for a software audit. In the overwhelming majority of cases, the business software alliance pursues the self. Acting either through an internal enforcement attorney or an outside law firm, bsa will send a letter to the target company requesting a selfaudit. Is it the business software alliance bsa, or the software information industry association siia these are two of the large software trade groups that routinely audit. You should always consult with a business law firm before agreeing to a third party software license audit which could inadvertently result in the loss of company trade secrets and expose your company to huge legal liability, and to not just succumb to the bsa, siia or software publisher legal demands for a private third party audit.
The type of audit depends on the circumstances and can. We received a form letter from the business software alliance bsa telling us to do a self audit and if we find any unlicensed software to report it during our grace period because if you organizations software is not licensed, it could become to focus of a bsa investigation. Jan 06, 2014 currently performing self audit of software installed throughout the company. Businesses sometimes find themselves the recipients of a letter from the business software alliance bsa demanding an audit and accounting of software installed on company computers. Provider selfaudit submission instructions alliance health. How to handle business software alliance audit demand letters. The business software alliance, also known as bsa, is a trade group established by the microsoft corporation in 1988 and represents a number of the worlds largest software makers and is a. What you need to know if you receive a letter from bsa the. Business software alliance is the industry organization that monitors software piracy and may demand that your company undertake a software licensing audit.
The bsa usually initiates an investigation after it receives a confidential report of unauthorized software use. But the business software alliance bsa, the software industrys vendorbacked licensingenforcement organization, rarely shows mercy to even. Baseline shows you how to avoid them altogether in 8 easy steps the fear of a business software alliance bsa audit has caused many a sleepless night among senior executives and it professionals over the past two decades. How to handle a business software alliance audit dtech. How to respond to a bsa or siia software audit letter. Financial audits are perhaps the most wellknown, as financial audits are conducted for the accounting processes of individuals and businesses every day. Our members create innovative software that improves peoples lives and grows the economy. If they want an audit, the reply to the request should note that you have privileged and proprietary information on your machines, that supervising the audit to ensure the security of this information and compensating for interference with and interruption of the operation of your computer systems will result in damages to your business, and. There are several types of software license audits, each with their own risks and variables, experts say. Learn about bsas work on responsible ai, protecting consumer privacy.
Once a company has completed its software audit and has produced the results to the business software alliance, the bsa then compares the audit results with the information it believes to be. The bsas response provides its interpretation of the self. Among those are a voluntary software licensing self. As we tell all of our clients when your company is involved in a software audit with big software publishers such as ibm, microsoft, adobe, bentley, rosetta stone, apple, autodesk, and their trade organizations bsa, siia you are usually in for a good fight. Its principal activity is trying to stop infringement of software produced by its members. The responsible business alliance rba is the worlds largest industry coalition dedicated to corporate social responsibility in global supply chains. Jenny blank, north american enforcement programs manager for the business software alliance bsa, explains the bsas audit process. The bsas response provides its interpretation of the self audit materials and applies a formula for its initial settlement proposal.
The letter, or one to follow, also includes an invitation to conduct an internal self audit and report the audit results to the business software alliance. Oct 20, 2015 a business software alliance bsa audit is usually initiated with a letter from the bsa stating that an investigation has been started on your business and that you should comply with a self audit to avoid litigation and other legal hassles. Business software alliance dirty tricks update network world. How to handle business software alliance audit demand. There are varying degrees of any audit onsite audit, self audit, sam assessment, assisted self audit, business software alliance audit and each carries its own form of labor cost and risk. Business software alliance article about business software. Most companies are totally unprepared for software audits initiated by software publishers and their trade associations such as bsa the. Acting either through an internal enforcement attorney or an outside law firm, the bsa will send a letter to the target company requesting a self. Tips for handling a microsoft software audit storagecraft.
Once a report is received, the business software alliance makes a decision about whether to request a self audit or to immediately file suit. We received a form letter from the business software alliance bsa telling us to do a self. The case settled outofcourt after four months of negotiations which centered on the number of alleged unlicensed installations of software by publishers such as adobe, microsoft and symantec. Prepare and send the following documents to the finance department. What to do when you receive a bsa audit letter by ericka chickowski print baseline talked to the experts whove directly dealt with the business software alliance, and weve compiled an 8 step guideline process for handling the aftermath of receiving an intimidating audit letter. Responsible minerals initiative the rmi is one of the most utilized and respected resources for companies addressing issues related to the responsible sourcing of minerals in their supply chains. It may be surprising to learn that the business software alliance bsa actually hires law firms to. A business owner or manager might also conduct a complete business audit. Targeted companies are contacted by the bsas attorneys, who request the company conduct a self audit and report the results. An audit is an official examination of a business, individual, product, process or system. Business software alliance bsa audits by attorney steve. Bsas misleading and unsavory tactics in software audits. The bsa is still doing audits, but many vendors, because of their need to drive revenue, have taken on the task of doing audits themselves, stoops said.
Baseline talked to the experts whove directly dealt with the business software alliance, and weve compiled an 8 step guideline process for handling the aftermath of receiving an intimidating. The business software alliance bsa are an international body that. The business software alliance bsa conducts all llc audits. Represented new york intellectual property law firm in a business software alliance audit.
Everything you need to know about software audits aberdeen. A selfaudit consists of a listing of all bsa member software running on a companys computer networks, appropriate indicia of ownership for. Apr 25, 2014 if you are not sure where your company stands, your should self audit your business to make sure you are compliant sam, and make sure you can prove, to the satisfaction of the bsa or siia that. The software alliance, also known as bsa, is a trade group established by microsoft corporation in 1988 and representing a number of the worlds largest software makers and is a member of the international intellectual property alliance. I recommend that legal counsel is copied on communications, and that the selfaudit is conducted at the instruction of legal counsel. If the bsa takes action and a company is found to be noncompliant, the fine is typically two to four times the cost of the software for. If your company is facing a software audit, you need experienced counsel to protect your business. Is it the business software alliance bsa, or the software information industry association siia these are two of the large software trade groups that routinely audit business. About the business software alliance bsa audit defense. We believe this is the ultimate software audit guide for selfrepresented businesses. Businesses sometimes find themselves the recipients of a letter from the business software alliance bsa demanding an audit and accounting of software installed on company.
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