WASHINGTON, Dec. 10 /PRNewswire-USNewswire/ -- The Business Software Alliance (BSA), the voice of the world's commercial software industry, today announced settlements with BreakAway Ltd. of Hunt Valley, MD and Aetrex Worldwide, Inc. of Teaneck, NJ. Breakaway paid $75,000 and Aetrex paid BSA $100,000 in damages. The unauthorized software included products from BSA members Adobe and Microsoft. As part of the settlement agreement, the companies agreed to delete all unlicensed copies of software from their computers, acquire any licenses necessary to become compliant, and commit to implementing stronger software asset management (SAM) practices.

BreakAway Ltd. is a developer of entertainment games and provides game-based solutions for real world products. The company has been in existence since 1998 and has clients which include the Institute for Defense Analysis and the Federal Deposit Insurance Corporation. Breakaway was selected in 2009 as a team member in an $8.6M R&D project to develop cybersecurity test and evaluation technology.

Aetrex Worldwide, Inc. is a $60 million dollar family-owned business specializing in pedorthic footwear and foot orthotics, and known originally for the development of arch supports and medically-oriented footcare products. The company has also pioneered a technological innovation called the iStep, its patented foot scanning technology for both the retail and medical communities.

In both cases, BSA was alerted to the unlicensed software use by confidential reports made on its web site www.nopiracy.com. Each year, on average, BSA receives more than 2,500 reports of software piracy. The majority of BSA's reports come from current or former employees who had information related to the unlicensed software activity.

Through BSA's "Know it, Report it, Reward it" program, individuals who provide qualified reports of software piracy are eligible to receive up to $1 million in cash rewards. Since 2008, BSA has paid over $274,000 in rewards for qualified tips of software piracy. Despite the program, many opt not to take the reward, citing their motivation for reporting as simply "to do the right thing."

"It is critical for all organizations to respect the software assets which ultimately help them drive their companies' engine of innovation," said Jenny Blank, Senior Director of Legal Affairs for BSA. "Those companies which handle sensitive consumer information, government data, or even their own creative designs must take extra care in ensuring the use of legitimate software to ensure license compliance."

"Aetrex is committed to ensuring the legality of our software installations. Working with BSA has also given us an opportunity to reinforce amongst our own employees the importance of protecting our company's intellectual property and ensuring our business continues to run optimally," said Larry Schwartz, CEO of the company.

According to the Sixth Annual BSA-IDC Global Software Piracy Study, the retail value of unlicensed software installed in 2008 -- representing revenue losses to software companies -- was estimated at $9.1 billion in the United States and $53 billion worldwide.

"Using legal software is the key to reducing piracy, strengthening local IT businesses, and creating the jobs that are needed during these challenging economic times," continued Blank.

Software piracy affects more than just the software industry. Piracy also saps local governments of needed tax revenues and often spreads information security risks. Reducing piracy brings tangible economic benefits to the local IT industry and local communities. For every $1 of PC software licensed, there is another $3 to $4 of revenues for local service and distribution firms, as well as tax revenues to support local services.*

Financial Risks

A company found using unlicensed software and violating copyright laws can pay damages of up to $150,000 for each software title copied. If convicted, violators can be fined up to $250,000 per title or given a jail term of up to five years, or both.

When BSA receives a tip about a company using pirated software, it typically contacts the company and asks it to conduct an audit of its software assets. If unlicensed software is found, the next step is for both parties to work toward a resolution that involves immediate legalization of software. If an agreement cannot be reached, BSA may file a lawsuit, as it did against Taney Engineering of Nevada.

Security Risks

Pirated software can also pose security risks to the users' networks and computers. Company computers can be infected with trojans, viruses, malware, and other threats, and this in turn can expose sensitive data and personal information of employees and customers. As companies and government agencies have found, having confidential information exposed to outsiders is costly and can put an organization's reputation at risk.

Tools & Resources to Ensure Compliance

BSA works with businesses to help ensure that their company isn't at risk for financial, technical, and legal risks associated with illegal software. In addition to the educational and self-audit resources provided on www.bsa.org, BSA has partnered with the U.S. Small Business Administration to educate up to 100,000 small businesses on software licenses, copyright laws, tips on how to purchase safe and legal software online, and how to develop a SAM program.

Businesses trying to determine whether their organizations are using unlicensed software can download the free software audit tools at www.bsaaudit.com.

Please visit our Facebook page under keyword Business Software Alliance (BSA) Anti-Piracy.

* Sixth Annual BSA-DC Global Software Piracy study

About BSA

The Business Software Alliance (www.bsa.org) is the foremost organization dedicated to promoting a safe and legal digital world. BSA is the voice of the world's commercial software industry and its hardware partners before governments and in the international marketplace. Its members represent one of the fastest growing industries in the world. BSA programs foster technology innovation through education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce. BSA members include Adobe, Apple, Autodesk, Bentley Systems, Corel, CyberLink, Dassault Systemes SolidWorks Corporation, Embarcadero, McAfee, Microsoft, Minitab, Quark, Quest Software, Rosetta Stone, Siemens, Sybase, Symantec, and The MathWorks.

SOURCE Business Software Alliance

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