BSA agrees record £1.7 million settlement with unnamed company

The BSA acts for software publishers in lobbying and anti-piracy activities. It often pursues companies using unlicensed software, and it said that this agreement is a record settlement.

"BSA member company software was core to this company’s business and yet it failed to manage this vital business asset," said Robert Holleyman, chief executive of the BSA. "This action brings the organisation into compliance with the copyright laws but at a significantly higher cost than if it had software asset management processes in place to begin with.”

The company concerned said, via a BSA statement, that it had expanded rapidly and given one person the responsibility of keeping track of software.

"This situation came about because we relied on a single individual to keep us compliant and manage our software assets across multiple-locations during a period of significant expansion," said the statement. "The management were shocked at the scale of the situation and recognise that by having software management processes and tools in place this could have been avoided.”

Holleyman said that the organisation often came across companies which lose track of software licensing when they grow.

“Sadly it is the BSA’s experience that companies undergoing periods of rapid growth, as in this case, can overlook software licensing issues. Software is critical to this organisation’s business, so it is vital to have genuine licensed versions to ensure its customers and staff benefit fully," said Holleyman. "This case clearly indicates that prevention is better than cure for everyone."

The BSA had made a criminal complaint about the company's behaviour on behalf of its members Microsoft, Adobe, Autodesk and Avid. That led to raids on the company last year by police, and the firm's assets were frozen.