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Cloud or No, Software Licensing Still a Big Concern

By Steve Anderson, Contributing TMCnet Writer

Most people don't think twice about software licensing. Whether most of the software used in a day comes with the computer itself, or whether it was provided by the business for which someone works, software licensing doesn't come to mind. But software licensing is still a major concern for many businesses out there, and the rapidly-changing landscape for software is making already muddy waters even tougher to traverse.

Recently, Adobe, Autodesk (News - Alert) and Corel sued Forever 21, a popular clothing retailer, for using several different pieces of software without appropriate licensing, a move that landed even after “...being contacted by Adobe (News - Alert) regarding the infringement.” This led to charges of “...willful, intentional and malicious copyright infringement” leveled against Forever 21, and all over a lack of sufficient licenses.

Some may think this is just a matter for the company to deal with, but not so, according to BSA, The Software Alliance's senior vice president and general counsel Jodie Kelley. Indeed, individual corporate officers can be targeted under software licensing issues under certain circumstances. These include, according to Kelley, circumstances in which the officer could have prevented the use of infringed software but didn't, or if the officer had a financial interest in the use of such software. While the standard for a personal attack is high, Kelley notes, it can still be done.

There are even regulatory issues involved; an ISO standard is directly related to software asset management, though no regulations specifically require such management, according to reports. However, a chapter on software licensing is found in COSO's 2013 framework, which suggests this may be a much bigger part of the picture before too much longer. Reports suggest that the SEC (News - Alert) itself will be turning to COSO's framework for consideration of internal controls.

But this isn't just a corporate problem, either; issues of bring your own device (BYOD) programs are at stake here, as shadow IT systems become a bigger problem for businesses. Employees using cracked or pirated software to get the job done is likewise troubling, and represents a serious potential problem for businesses wanting to better keep track of the software used in a day. Even Kelley admits this isn't a problem so much of companies trying to save a buck, but rather of several different inputs at once making a difficult and complex situation.

Software licensing can be an extremely complex process, and that by itself may be the biggest problem of all. When even licenses are confusing—just look at the recent Windows 10 update for an example—it's not hard to envision companies missing a step along the way. Simplified license agreements would likely go a long way toward improving compliance, though admittedly, there's only so much simplification that can be done.

Software runs our everyday business. Without software, our mobile devices and computers are just expensive paperweights. But when software licensing gets as complex as it's getting right now, that can mean big problems for everybody, problems that might be avoided if we could just make it a little simpler to get and use software.