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Software Licensing Compliance: The Challenges

By Michelle Amodio, TMCnet Contributor

IT professionals have a responsibility to make sure their businesses not only understand but comply with software licensing laws.

A perfect example of a licensing software conundrum is when a company buys one copy of a software program, such as Microsoft (News - Alert) Office, and for whatever reason, spreads it across multiple computers in the workplace. The company has gotten itself in a situation where it is not compliant with the licensing agreement terms of the particular software product.

Software licensing is a complicated issue. There are many challenges associated with this topic, and it is up to the IT professionals to address these challenges and be cognizant of their role in keeping businesses compliant.

One of the biggest challenges is not making compliance part of a regular routine in an asset management program. Part of this can include establishing a clear and concise software policy, which should help employees understand the value of software and learn the difference between legal and illegal use, as well as pledge their commitment to the proper use of software.

IT managers should then track the information using an IT asset management program to help streamline the process of keeping tabs on their software and licenses.

One other challenge managers should be made aware of is when employees make extemporary purchases. It’s worth working with vendors to see if it’s more cost effective to purchase a volume license versus purchasing many separate software licenses.

If caught non-compliant with application permission policies, it’s very likely that it will lead to adverse results over organizations. Application authorization infringement cases can attract heavy fines, impoundments and even detention. Prior to purchasing any tool, it is important to go through license agreements and meet all its criteria so as to avoid any kind of future infringements.

It is up to IT departments to demonstrate they have an understanding of licensing issues and bring to light any occurrence of noncompliance and challenges they find.