Business Law Advice: How You Can Avoid the Cost of a Software Licensing Audit

by | Jan 30, 2018 | Business Law

If your business purchases licenses to use any type of software, such as Adobe Photoshop or Microsoft Windows (or an array of others), then you may find that software audits are an extremely troublesome part of your business law issues.

At the Law Offices of Peter M. Feaman, we can help with any business law issue you may have. We have years of experience and are able to help. We can answer any questions you may have about a potential software audit and how it can impact your business.

What is a Software Audit and Can a Business Law Attorney in Boynton Beach Help?

A software audit usually involves the vendor of the software sending a representative, or another third-party auditor, to your company to review your compliance with the licensing agreements, as well as other obligations. The vendor of the software (or third-party representative) is searching for situations where your company has begun to use unlicensed software, or that is using more than the number of companies that have been authorized. A software audit can be extremely stressful and result in serious business law issues and fees.

Tips for Avoiding a Software Audit and Business Law Problems

There are quite a few companies that have issues with software compliance, and yours may be one of them. After all, the growing complexity, as well as the interconnection of modern software applications have made it extremely hard to remain abreast of compliance obligations.

Another issue is if your business is growing rapidly. Some ways that you can avoid issues if a software audit is done include:

  • Anticipate that the audit is going to occur at some point.
  • Get to know the licensing agreements for the software you are using.
  • Ensure you have a structured program to ensure compliance.
  • Conduct periodic internal software audits to ensure everything is compliant.
  • If you discover issues with compliance, contact your business law attorney prior to making any other moves.
  • If you receive a software audit notice, then contact your business law attorney.

Problems That May Arise with a Software Audit and Why Business Law Issues May Arise

The bad news is, the first indication that your company has a problem with your software licensing compliance is when you receive a notification of an audit. The fact is, depending on the actual terms outlined in the license agreement, the software vendor may be able to start the software audit right away.

However, the real issues begin after the audit is done.

Your company may have to pay high fees and penalties if they are found to be non-compliant, and the vendor may even be able to terminate the license agreement in place. Additional, the vendor may be able to impose even more serious penalties if they are able to prove that the company or the managers intentionally filed in regard to complying with the licensing agreements or that they knowingly used unauthorized software.

If you are facing a software audit or the consequences that occur after this audit, the best thing you can do is contact a business law attorney. They can help reduce the penalties and help you remain compliant.

If you need additional information about software audits or legal assistance, contact the team of Boynton Beach business law attorneys at the Law Offices of Peter M. Feaman, PA by calling 561-469-0019.

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