How to Establish a Software License Compliance Policy

Being compliant with the terms and conditions of software licenses isn't just a matter of business ethics, it's a potentially criminal matter. If a company is found to be non-compliant during an audit, there are significant fines involved. Furthermore, evidence of software piracy can carry prison time as well. In view of these possibilities, companies are encouraged to establish clear policies in regard to software license compliance.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• Software logs
• Approved software vendors
• Written policy

Take Proactive Measures

1. Review the Software and Information Industry Association's (SIIA) information about software copyright laws. The SIIA is the largest trade association of the software industry. They conduct external software compliance audits, but also have an extensive education division devoted to helping companies stay in and verify compliance.

2. Establish strict purchasing policies. Determine who will be authorized to make software purchases and what documents they will need for proof of purchase. To ensure that all documentation is up to standards it's also a good idea to make a list of approved vendors from whom software may be purchased.

3. Create a library of all installation software and require authorized employees to sign the discs in and out. Should an internal audit find a particular software to be installed above its license allowance, you can turn to the signature log to locate possible offenders.

4. Restrict the number of administrative users on the system that, in turn, will limit the number of people who are able to install software. In addition, you should require all software installation to be reported and logged. This makes it easier to keep track of software license usage.

5. Use a software monitoring system if you don't feel comfortable with your employees' self-monitored usage. Such systems can record the virtual movements of all the computers in your company. They also have the capability to block unauthorized use of certain programs.

Establish a Software License Compliance Policy

1. Establish a clear software usage policy. Your policy should address what types of software are acceptable to be used on desktop computers, whether company software can be installed on personal computers and the penalties for non-compliance. To be thorough, include information about what happens when new software is acquired and when old software is retired.

2. Communicate your software usage policy to all employees. In addition to having meetings for verbal notification, post a written copy of the software usage policy in a common employee area. You may also want to include it on the company's internal website and in the employee handbook.

3. Require all employees to sign a copy of the policy, acknowledging they have been informed of it and understand the ramifications of misusing company software.

Tips & Warnings

• When using a software monitoring system, inform employees of its existence and let them know what types of activity are being monitored.