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What Clients Need to Know about Software Piracy

1990; American Institute of Certified Public Accountants; Volume: 170; Issue: 5 Linguagem: Inglês

0021-8448

Sheldon H. Eveloff, Martin L. Faigus,

Digital Games and Media

Under federal copyright law, unauthorized duplication of computer software carries both civil and criminal penalties that apply to the perpetrator--and maybe to the employer as well. This means professional firms and their clients are vulnerable to prosecution if they are not careful about their use of software. Those who understand when and how piracy occurs can reduce or prevent exposure to copyright infringement liability. CPAs can apply this knowledge at their own firms or as consultants to their clients. WHEN IS COPYING NOT A CRIME? Under certain limited circumstances, a lawful owner of a copy of a computer program can make another copy or adaptation, unless agreement specifically prohibits it. Typically, computer program purchasers acquire the right to use them on a single computer. The Copyright Act (17 U.S.C. 117) permits making a copy or adaptation of a computer program provided it is either for the user's archives only or is created as an in using the program in conjunction with a machine (that is, computer-controlled equipment). Since the phrase essential often requires legal interpretation, it's a good idea to consult attorney before purchasing a program that may require subsequent modification. If a copy is made for the archives, then that is its only permitted use. Accordingly, the owner of the copy cannot sell or otherwise transfer that copy by itself. In addition, all archival copies must be destroyed if the owner of the copies discontinues rightful use of the original program. But if all rights to the original program are leased, sold or otherwise transferred to another party, exact legal copies also may be transferred. However, adaptations (that is, modifications) of the program may be transferred only with the authorization of the copyright owner. LICENSING DEFINES THE RIGHTS In buying a computer program, the owner usually acquires the right to use the program in accordance with the terms of a written license agreement. Here are the three most common kinds of agreements: Single-use license. This generally allows the buyer to install and operate the software on one computer. Under this type of license, installing and/or copying the program onto any additional computer is illegal. However, the transfer of a computer program from one computer to another may be acceptable, provided the software is physically removed (de-installed) from one computer before transfer to another. Also, if the single-user license is silent about the purchaser's right to make a backup copy or adaptation, then making either of them for archival purposes or as step in using the program on a machine should be permitted, since doing so is allowed under the Copyright Act. Site license. This generally permits copying software onto multiple computers located at one or more specified locations. It may limit how many copies can be installed. Multiuser license. This generally allows operation of the software on a network of computers. It usually involves a multuuser version of the software that allows several users to access and use one program simultaneously. These license sometimes restrict the number of users or work stations permitted access to the software. Many software companies offer a single-user version as well as a more expensive multiuser version of the same program. To reduce expenses, a firm or its clients might be tempted to use the single-user version on a network, but this clearly violates copyright laws. To protect themselves and their clients from ambiguities and misunderstandings in licensing agreements, CPAs should ask legal counsel to review and clarify them to ensure the provisions are right for the owner's intended used. COPY-PROTECTED--OR NOT? Many people believe that if software is not explicitly copy-protected, the buyer can make unlimited number of copies to use, share or sell. …