This was originally posted by Eric Chiu on hwfisher.co.uk
Under the name of “Revenue Protection”, most software publishers have been checking on their customers to ensure that they have not used more software than paid for, a practice known as Software Licence Compliance (SLC) audits.
Traditionally, SLC audits are mainly concerns of the FTSE 500 who spend tens of millions in computer software every year. Over the years of paying out unexpected licence audit fines, most large organisations have reacted with heavy investments in internal governance programmes around software assets, making the FTSE 500 less of a lucrative market for compliance revenue generation.
As a result, we have observed a significantly increased level of software licence auditing activities in the mid-market and SME sectors over the past 18 months.
How does it work?When a software supplier of yours suspects that you owe them money, it will enact the audit clause embedded in most Software Licence Agreements today and send in the licence inspectors. Sometimes third-party inspectors are involved, they can be the FAST (Federation Against Software Theft), the BSA (Business Software Alliance) and in the most serious situations, the PIPCU (Police Intellectual Property Crime Unit).
The inspectors will assess your licence usage... Continue reading.