California Companies Settle Software Piracy Claims

Washington, D.C. – The Business Software Alliance (BSA), said yesterday that nine California companies paid BSA a combined total of $826,270.81 to settle claims that they had unlicensed copies of software programs installed on office computers. In addition to making their respective payments, the companies agreed to delete any unlicensed copies, purchase replacement software and strengthen their software management practices.

The following companies settled claims with BSA:

• Ascent Media Group, Inc., a provider of creative and technical media services to the media and entertainment industries with offices in Burbank, CA, paid BSA $145,000 after a self-audit revealed that it had unlicensed Adobe, Apple, Autodesk, Macromedia and Symantec software programs on its computers.
  
• Beutler Corporation, a residential HVAC contracting, engineering, and sheet metal fabricating company, located in McClellan, CA, paid BSA $65,000 after a self-audit revealed that it had unlicensed Adobe, Autodesk and Corel software on its computers.
  
• CallSource, a company that provides information technologies and advisory services located in Agoura Hills, CA, paid BSA $104,000 after a self-audit revealed that it had unlicensed Microsoft software on its computers.
  MTC Distributing, a wholesale distributing company headquartered in Modesto, CA, paid BSA $205,791.70 to settle claims that it had unlicensed Adobe, Microsoft, Symantec and VERITAS software on its computers. • Select Office Solutions, Inc., a provider of digital equipment and network needs located in Irwindale, CA, paid BSA $50,000 after a self-audit revealed that it had unlicensed Adobe, Microsoft and Symantec software on its computers.
• Transamerican Auto Parts, Inc., with offices in Compton, CA, paid BSA $75,000 after a self-audit revealed that it had unlicensed Microsoft and Symantec software on its computers.
• Tropitone Furniture, Inc., a manufacturer of indoor, outdoor and pool furniture with offices in Irvine, CA, paid BSA $75,000 to settle claims that that it had unlicensed Microsoft and Symantec software on its computers.
• WordSmart Corp., a provider of educational software and learning systems with offices in San Diego, CA, paid BSA $56,479.12 after a self-audit revealed that it had unlicensed Adobe, Autodesk, Macromedia, Microsoft and Symantec software on its computers.
• Workmen’s Auto Insurance, Co., an automobile insurance provider with offices in Los Angeles, CA, paid BSA $49,999.99 after a self-audit revealed that it had unlicensed Microsoft software on its computers.

Most investigations begin with a call to BSA’s hotline, 1-888-NO PIRACY, or with a report to BSA’s Online Reporting Form, at www.bsa.org. In these cases, BSA’s attorneys contacted the companies and they cooperated with BSA and voluntarily conducted self-audits.

“These settlements demonstrate the breadth of the problem. Even good, well-managed companies can have unlicensed software on their computers,” said Bob Kruger, vice president of enforcement for BSA. “Companies can help prevent this problem by establishing a comprehensive software asset management program.”

“Beutler Corporation is committed to copyright compliance,” said Ali Cakus, director of business operations. “We have created a new software management policy that emphasizes the importance of using only fully licensed software.”

"Select Office Solutions, Inc. remains committed to full compliance,” said Frank J. Mendicina, president of Select Office Solutions. “We took this opportunity to correct some oversights related to software licensing.”

"BSA upholds the integrity of software invention," said David Kay, President, WordSmart Corporation. "We are aware that software publishers lose billions of dollars annually as a result of software piracy. WordSmart, a creator of its own intellectual property -- educational software for vocabulary enhancement -- applauds BSA's contribution to the copyright protection of all software programs."

“Workmen’s Auto Insurance denies any improper actions and liability, voluntarily undertook its own investigation, then fully cooperated with the BSA, and maintains that any copying without licenses was inadvertent,” said Robert Sharp, president and CEO, Workmen’s Auto Insurance.

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

An independent study* shows that 22 percent of software in the United States is unlicensed. Last year, the U.S. lost nearly $6.5 billion as a result of software piracy.