Reality Check
The following are just a few of the reasons why using software ethically is so important for businesses and consumers:
Software piracy is illegal. It is a Federal offense to duplicate software without proper license authorization.
* Software piracy is risky. Stolen software can be infected with computer viruses, incompatible with computer systems, or not fully functional. It also lacks manuals and/or technical support.
* Software piracy is unproductive. Software typically becomes out-dated very quickly and piracy leaves no access to product upgrades or innovations.
* Software piracy is wrong. Put yourself in the shoes of a software developer and ask yourself how you would feel if your property and life’s work were stolen and used without your permission or compensation.
Software piracy costs the software industry over $10 Billion in lost revenue each year and costs U.S. businesses millions in fines and legal fees. Software piracy translates into higher costs for consumers, less technical support and innovation and fewer jobs.
A Software Policy for Businesses
It is highly recommended that businesses adopt a software policy to help avoid any violations of software licensing. Below is a sample policy provided by the Software Publishers Association (SPA). To report a case of software piracy, call 800.388.7478.
Sample Software Policy
1. General Statement of Policy. It is the policy of [Name of Business] to respect all computer software copyrights and to adhere to the terms of all software licenses to which [Name] is a party. [Name] will take all steps necessary to prohibit users from duplicating any licensed software or related documentation for use either on [Name] premises or elsewhere unless [Name] is expressly authorized to do so by agreement with the licensor. Unauthorized duplication of software may subject users and/or [Name] to both civil and criminal penalties under the U.S. Copyright Act.
[Name] must not permit any employee to use software in any manner inconsistent with the applicable license agreement, including giving or receiving software or fonts from clients, contractors, customers and others. [John Doe is [Name’s] software manager, and is charged with the responsibility for enforcing these guidelines.
2. User Education. [Name] must provide and require a software education program for all of its software users (to be crafted by the software manager). Upon completion of the education program, users are required to sign the [Name] Employee Personal Computer Software Usage Guidelines. New users will be pro-vided the same education program within 10 days of the commencement of their employment.
3. Budgeting for Software. When acquiring computer hardware, software and training, [Name] must budget accordingly to meet the costs at the time of acquisition. When purchasing software for existing computers, [Name] must charge the purchases to the department’s budget for information technology or an appropriate budget set aside for tracking software purchases.
4. Acquisition of Software. All software acquired by [Name] must be purchased through the [MIS, purchasing, or other appropriate] designated department. Software may not be purchased through user corporate credit cards, petty cash, travel or entertainment budgets. Software acquisition channels are restricted to ensure that [Name] has a complete record of all software that has been purchased for [Name] computers and can register, support, and upgrade such software accordingly. This includes software that may be downloaded and/or purchased from the Internet.
5. Registration of Software. When [Name] receives the software, the designated department (MIS, purchasing, etc.) must receive the software first to complete registration and inventory requirements before installation. In the event the software is shrink-wrapped, the designated department is responsible for completing the registration card and returning it to the software publisher. Software must be registered in the name of [Name] and department in which it will be used. Due to personnel turnover, software will never be registered in the name of the individual user. The designated department maintains a register of all [Name] software and will keep a library of software licenses.
6. Installation of Software. After the registration requirements above have been met, the software will be installed by the software manager. Once installed, the original media will be kept in a safe storage area maintained by the designated department. User manuals, if provided, will either reside with the user or reside with the software manager.
7. Home Computers. [Name] computers are organization-owned assets and must be kept both software legal and virus free. Only software purchased through the procedures outlined above may be used on [Name] machines. Users are not permitted to bring software from home and load it onto [Name] computers. Generally, organization-owned software cannot be taken home and loaded on a user’s home computer if it also resides on [Name] computer. If a user is to use software at home, [Name] will purchase a separate package and record it as an organization-owned asset in the software register. However, some software companies provide in their license agreements that home use is permitted under certain circumstances. If a user needs to use software at home, he/she should consult with the software manager or designated department to determine if appropriate licenses permit home use.
8. Shareware. Shareware software is copyrighted software that is distributed via the Internet. It is the policy of [Name] to pay shareware authors the fee they specify for use of their products. Under this policy, acquisition and registration of shareware products will be handled the same way as for commercial software products.
9. Quarterly Audits. The software manager or designated department will conduct a quarterly audit of all [Name] PCs and servers, including portables, to ensure that [Name] is in compliance with all software licenses. Surprise audits may be conducted as well. Audits will be conducted using an auditing software product. Also, during the quarterly audit, [Name] will search for computer viruses and eliminate any that are found. The full cooperation of all users is required during audits.
10. Penalties and Reprimands. According to the U.S. Copyright Act, illegal reproduction of software is subject to civil damages of as much as US$100,000 per title infringed, and criminal penalties, including fines of as much as US$250,000 per title infringed and imprisonment of up to five years. An [Name] user who makes, acquires, or uses unauthorized copies of software will be disciplined as appropriate under the circumstances. Such discipline may include termination of employment. [Name] does not condone the illegal duplication of software and will not tolerate it.
I have read [Name] anti-piracy statement and agree to bind the [Name] accordingly. I understand that violation of any above policies may result in both civil liability and criminal penalties for the [Name] and/or its employees.
Software Piracy and Businesses
In the workplace, software piracy takes two common forms: 1) extra copies of software are made that employees take home; and 2) extra copies are made for the office. Both situations mean a greater number of computers can run more copies of the software than were originally purchased. However, unless a special arrangement has been made between the business user and the software publisher, the user must follow a simple rule: one software package per computer. This means that a copy of software should be purchased for every computer on which it will be used. For example, if there are 25 employees using word processing software on their computers, each employee must have a licensed copy.
Software development involves a team effort that blends the creative talents of writers, programmers and graphic artists. Piracy diminishes the value of a program and deprives the developers of fair compensation.
By buying the correct number of programs or the right type of license, a company removes the incentive for employees to make unauthorized copies. Following these rules pays off in the long run. Businesses that illegally duplicate software expose themselves to severe criminal and financial penalties.
Computer Software Piracy
Software piracy is any unauthorized use of computer software. It includes the following:
1. “Softloading” — the purchase of a single user software license that is subsequently loaded onto multiple computers or servers;
2. “Counterfeiting” — the making, distributing and/or selling of software copies that are faked to look like they come from an authorized source;
3. “Renting” — the rental of software to consumers without the permission of the copyright holder;
4. “Unbundling” — the distributing and/or selling of software that has been “unbundled†or separated from the products with which it was intended to have been “bundled†or sold;
5. “Internet downloading” — the downloading of copyrighted software from the Internet or bulletin boards without permission from the software copyright owner.
Software Piracy and the Law
Software is automatically protected by federal copyright law from the moment of its creation. The rights granted to the owner of a copyright are clearly stated in the Copyright Act, Title 17 of the U.S. Code. The Act gives the owner of the copyright “the exclusive rights” to “reproduce the copyrighted work” and “to distribute copies … of the copyrighted work” (Section 106). Consumers who purchase a license for a copy of software do not have the right to make additional copies without the permission of the copyright owner, except
1. to copy the software onto a single computer and
2. to make another copy for archival purposes only.
Software creates unique problems for copyright owners because it is easy to duplicate, and the copy is usually as good as the original. This fact, however, does not make it ethical or legal to violate the rights of the copyright owner. Such violators can pay a heavy price
Software pirates are liable for a software copyright infringement whether or not they know their conduct violates federal law. Penalties include liability for damages suffered by the copyright owner plus any profits of the infringer that are attributable to the copying, or statutory damages of up to $100,000 for each work infringed. The unauthorized duplication of software is also a Federal crime if done “willfully and for purposes of commercial advantage or private financial gain (Title 18 Section 2319(b)).” Criminal penalties include fines of as much as $250,000 and jail terms of up to 5 years.
When a few people steal software, everyone loses.
Permissible Software Use
Anyone who buys a license for a copy of software has the right to load it onto a single computer and to make another copy “for archival purposes only.” It is illegal to load that software onto more than one computer or to make copies of that software for any other purpose unless specific permission has been obtained from the copyright owner or otherwise permitted in the license accompanying the software program. The law applies equally, for example, to a $25 game and a $750 project management program. Each product reflects a substantial investment of time and money by many individuals.
Regardless of sales price, software piracy inhibits innovation. The software industry is filled with new developers trying to break into a crowded market. They can survive only if their products are purchased. Each theft makes staying in business more difficult.
Choosing the Right Internet Service Provider
If the thought of choosing an Internet service provider (ISP) or of switching to a new one fills you with dread, you’re not alone. As more and more ISPs crop up and the options get increasingly complicated, the supposedly simple task of getting on the Internet takes on a new dimension.
The Better Business Bureau suggests you do some homework before deciding on a particular provider.
The first thing to look for when choosing an ISP is whether they have an access number that is a local phone call for you. Otherwise, you may end up paying the phone company more than you pay the ISP. If you reside in or near a large or medium-sized city you should have no problem finding an ISP with a local access number. However, if you live in a rural area you may not have much luck in finding one at all. If you can’t find an ISP with a local access number, be sure you get the best long distance rate possible.
Price is a large factor when choosing an ISP. Most providers offer a monthly fixed, flat-rate with unlimited online time. If you’re only interested in surfing for brief periods at a time or you just need e-mail access, look for pricing that reflects the actual time spent online. Ask about discounts if you opt to have your payments made automatically by credit card, or for signing up for a longer period (three or more months). Keep in mind, that the lowest price is not always the best deal. Find out what features are included in the price, such as e-mail, Web page hosting, filters for downloading, etc.
If you’re new to the Internet, you should look for an ISP that will help you get things up and running. Ideally, look for a service that offers a 24-hour, seven-day-a-week support and preferably an 800 or local phone number. Call the number at a time representative of the hours you’ll be keeping and see how often you get a busy signal or get placed in a queue, and for how long. If you already have Internet access, check out the company’s web site and see how informative it is and how easy it is to navigate. Look for the frequently asked questions area, which can save you time in the long run by answering those more obvious questions. Also, check the company out with your Better Business Bureau.
Find out if the ISP has enough modems? Also, does it have sufficient bandwidth to the Internet to properly support all of the users who log on?
Finally, ask for recommendations from friends and coworkers.
Choosing a Web Hosting Service for your Business Web Site
Is your business web site down again? Does it seem to have more downtime than uptime? You may want to consider changing your web hosting service. One of the most important decisions you will make for your business web site is selecting which web hosting service will display your web pages to the Internet. Choosing the right Internet Service Provider (ISP) to host your business’s web site may feel like finding the right day-care center for your kids these days: Are they reliable? Will they be there next month? Do they know what they are doing? What services do they provide?
Finding a provider to host and maintain your Web presence can be a walk in the park, if you gather the right information. Or, it can be a disaster waiting to happen. The Better Business Bureau suggests you consider the following when shopping for a web host:
* Know what type of service you need and only pay for that service. Large companies and high volume web sites can expect to pay higher rates for the services they need.
* Shop around. Going with a big-name company may not be the best option for a small business. With larger companies you may find yourself competing for attention when it comes to getting service and performance issues addressed.
* Ask questions. Find out how much space the hosting company will allow you on their server for mail, log files, system programs and graphics. How many email addresses are you allowed? Inquire about the availability of mailing list management programs, such as Majordomo for newsletters and autoresponders for automatic responses to email messages sent to certain addresses. Also, ask if they provide some sort of statistical data on visitors to your web pages.
* Read your service contract carefully. If there were verbal negotiations between you and the web hosting company, be sure they are included in the contract. For instance, if the web hosting company says it will respond to complaints or glitches with your account within 12 hours, rather than their usual 24 hours, be sure that promise is included in your contract.
* Make certain that the data on your web site remains secure and within your control. If you want “state of the art” security, add those words to your contract. That way you know your web hosting company has agreed to provide it.
* Check the web hosting company out with the Better Business Bureau before doing business.
Buying Custom-Built PCs
If you have finally decided to leap into the information age and buy a personal computer, but you don’t want to spend a small fortune, you may want to consider buying a custom-built computer. Custom-building computer stores, sometimes known as “screwdriver shops,” are becoming very popular. By limiting their marketing to small newspaper ads, buying off-the-shelf components and selling direct, they can charge less than companies that have to fight for shelf space in computer superstores. To save money and to ensure you get the system you desire, the Better Business Bureau suggests you do some homework first.
If you are a first-time computer buyer with little or no computer experience, trying to decide what you want in a computer can be a hard decision. Before beginning your search, read computer magazines or other literature. Speak to friends or colleagues who have personal computers so that you get a good idea of what computer specific applications you want and need.
Once you have decided on a shop to do business with, contact your Better Business Bureau to get a reliability report on the company. Find out how long the company has been in business. Sometimes you’ll find that a lot of shops will start up, manufacture a lot of systems and then disappear.
Look for a place that will sit down with you and talk about your needs. You want people who will take the time to show you why one part is better than another, not just tell you.
When your new computer is ready to be picked-up, immediately run a diagnostic program like Norton Utilities (Win 3.1, Win 95, Mac, etc.) to make sure your computer is everything it appears to be. It’s a good idea to do this procedure while the system is still in the store. It is also a good idea to do what is called a “burn-in” on your machine when you get it home. Most shops have short warranties, so you should leave your system on for a least three days. This burn-in process should kill any substandard or heavily worn parts while the warranty is still valid. Never buy from a shop without a warranty.
Be sure to ask about computer support and service. Most custom-building computer stores are a local phone call away and are least likely to put you on hold for an extended period of time. The down side is that most local shops simply can’t afford to staff a 24-hour help line. So, if round-the-clock support matters to you, a custom built PC may not be your best choice.
Buying Computers By Mail
Because of competitive prices, huge selections, immediate availability, and reputable reliability, millions of consumers are now buying computers by mail. To ensure your transaction goes smoothly, the Better Business Bureau suggests you do some preliminary research on the type of equipment that would satisfy your needs and also consider the following points before buying a computer by mail.
Contact the Better Business Bureau where the company is located to get a reliability report.
Know what the system’s specifications are. How much memory does the system have and what is the size of the hard drive. It’s important to know whether the system can be upgraded. You may want to expand your capabilities later on. Ask whether there is room to add another hard drive, tape drive or CD-ROM.
Look for both manufacturer and vendor warranties on the products you are considering, and read them carefully before you decide to buy. Also, if your method of payment is by credit card, check with your credit card company to see if they will extend the warranty since repairs may be needed after the manufacturer’s warranty lapses.
Before you order, ask if there is a “no-return” policy or a time limit on returns if the system does not meet your needs. Most companies allow 30 days to receive a full refund. Also, ask about the company’s replacement policy. Usually when an item is not in stock, vendors may replace it with another brand stating in their solicitation that they “reserve the right to substitute an equivalent item.” Be sure that the return policy allows you to return the system if you are unhappy with the substitution.
If the company offers on-site service, find out who is eligible. Some companies may advertise on-site service; however, it may not be offered to everyone, or at every location. Also find out what kind of technical support is available. Many mail order vendors have 24-hour toll-free support hotlines which can be valuable.
If you have problems with an order, first contact the company. Communicate, whenever possible in writing. Be sure to keep a record of your order and correspondence and a log of any phone conversations. If you’re not satisfied with their response, you can contact your local Better Business Bureau where the company is located or your local consumer protection office.
Play it Safe on the Internet
Whether you are shopping, banking or investing on the Internet the BBB and the Federal Trade Commission encourage you to make sure your transactions are secure and your personal information is protected. The following tips are suggested:
* Before you provide any personal financial information to a web site, check the site’s privacy policy. Find out how your information will be used or shared with others and what security features are in place to protect your information from being fraudulently obtained.
* Keep your personal information private. Do not disclose your address, telephone number, your Social Security number, bank account number or email address, unless you know who is collecting the information, why they are collecting it and how they will use it.
* Make certain the web sites you frequent are owned by reliable businesses. Look for trustmarks or seals from trusted third-party organizations, like the Better Business Bureau’s BBBOnLine program, that indicate the business has met high privacy protection and other safe e-commerce standards.
* Give payment information only to businesses you know and trust, and only when and where it is appropriate. Never give your password to anyone online; even your Internet Service Provider. Do not download files sent to you by strangers or click on hyperlinks from people you do not know. Opening a file could expose your system to a computer virus or a program that could hijack your modem.
* Keep records of your online transactions and read your email. Merchants may send you important information about your purchases.
* Review your credit card and bank account statements promptly and carefully, each and every month. Look for errors or unauthorized purchases. Notify your credit or debit card issuer immediately if your credit or debit card or checkbook is lost or stolen, or if you suspect someone is using your accounts without your permission.
Computer Insurance
Investing in a personal computer is not less an amount. It is next only to investing in a house or a car. So, it’s not unwise an idea to insure your computer and its allied accessories like peripherals and software. However, how much coverage you get for what accessory depends on individual market offer. There are several threats your computer might face. Such as virus attack, data corruption, system crashing down, peripheral malfunctioning and many more. Thus, it is important for you to protect your investment by proper insurance coverage. There are certain aspects of computer insurance you must know.
Coverage under homeowner or renter’s policy
In most of the cases if you have homeowner or renter’s policy your home accessories and assets are also covered in that and so is your computer. It is covered against all the threats and disasters listed in the policy. Thus, if your computer gets stolen or gutted in fire you can claim for the damages. However, your computer gets covered only for the amount listed in your policy.
Replacement cost and actual cash value
Though replacement cost is 10 percent more expensive as compared to Actual cash value, keeping in mind that things depreciate fast, this is a very wise move. The reimbursement you get on replacement cost is the same as the current cost of your computer and not the petty depreciated cost you would get with actual cash value policy.
Coverage for Laptop and portable computer
Laptop and portable computers are considered personal possessions away from home under the homeowners or renter’s policy. Thus, they are also covered under this policy. However, there is a dollar limit on personal possession that are stolen or damaged away from home.
Computers don’t only get covered under the homeowners or renter’s policy. A number of insurance companies offer individual insurance policies for computers as well. It is important to remember that when you buy a computer insurance policy you must retain the receipt of the policy as well as that of the computer and its peripherals very carefully.
Computer insurance is vital for students, business professionals, small business owners, schools, home users with heavy usage and many more people who use computers for their critical applications. Computer insurance does not cover certain items such as maintenance costs, electrical or mechanical breakdown, wear and tear, fraud and dishonesty, consequential loss, and loss or damage caused by sonic bangs. However, they are well covered under the warranty/extended warranty of the equipment.