Compliance Software: Regulations and Licensing

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Using compliance software has certain regulations and requirements which users must fulfill in order to maintain best practice. For instance, owners of software applications have certain moral and ethical expectations from users which include compensating them.

Every year hundreds of lawsuits get filed against institutions, and individuals for violating the copyrights of compliance software applications. Piracy and infringement is illegal and has serious consequences when one is caught. Such institutions and individuals violating copyrights are charged with a penalty of at least $150,000 per copyright violation.

Best practice requires refraining from illegal activities. Using compliance software application without complying with regulations and failure to get a license also lead to:

1.       Poor or complete lack of product support: When you need use information, upgrade or other options with the software there will be limitations.

2.       No warrantees for the application:  If you have bought your copy from an illegal or unregistered source and you experience poor performance of the software; you will not receive the benefits of warrantee.

3.       Poor or no protection from virus attack: Pirated copies are tampered with. This reduces their resistance to virus attack and hacking making your system vulnerable.

4.       Interface issues: When installed on a network there will be constant interruptions and poor communication across the network.

5.       Subsequent damage to reputation: Failure to work with optimum performance will lead to damage of the reputation of the organization.

6.       Possible criminal charges against managers or directors: Angry software owners can press criminal charges against managers, directors or the firm as a whole. This can have disastrous consequences.

Violating Software License:

Installing a software application without proper registration and license is not the only form of violating software license. Unauthorized duplication and distribution without the owner’s knowledge is also illegal. Similarly using software on more than one system when it is not allowed by the owner is also a form of violating software license. In fact providing a license without paying for it, whether it is for a friend or a co-worker is also a crime. Therefore, as a best practice managers and directors need to ensure that they avoid all of these from happening.

Ensuring Software Licensing Compliance:

There are different policies when it comes to software applications. This is because these regulations are set by the owner. It is a best practice to read the End User License Agreement while running the installation. This is where a user will be told about the limitations of using the software and the consequences of being caught.

Violations are Detected

Owners of compliance software include certain security programs within the software application which enables them to detect illegal uses. When you run an update or send reports online, violations are recognized and the owner of the software gets informed automatically. Unless you stop using the illegal copy stronger action will be taken against you or the institution as a whole.

Therefore as a best practice reading the guidelines and License agreements is the best approach to use compliance software.

Further reading: Corporate Governance | Audit | Performance Improvement

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