Software licensing penalties: what to watch out for?

Hey everyone!

I have a question for the group—does anyone here know what kind of fines we're looking at if a company uses unlicensed software? Specifically, I mean using cracked versions of Windows and other programs.

Also, is there perhaps some kind of utility where, if an inspector walks into the office, you could just hit a key and make the computer impossible to turn on—or maybe prevent it from booting into Windows entirely?🙂

Look, if an inspector rolls up on you and realizes you’ve already started running the business, they aren't just going to give you a slap on the wrist. They're gonna come breathing down your neck for every single receipt and software license you own. Honestly, they'll make your life a living hell until you're basically ready to throw the whole damn computer into the Atlantic.

Keith Robinson78 said:If an inspector shows up and realizes you've already been running a business, they aren't just going to walk away—they'll demand to see every single invoice and software license. Honestly, they'll make your life a living hell...

Fair enough—but does anyone actually know how much the fine is?

Keith Robinson78 said:If an auditor shows up and realizes you've been running a business on unlicensed software, they’re going to come knocking for receipts and licenses—and they won't be happy about it.

Also, just one more thing—what happens if I'm using a free operating system, like Linux?

Kyle Martin67 said:Alright, but does anyone actually know what the fine looks like?

U.S. COPYRIGHT LAW
2. Violations
Copyright and related rights infringement
Section 189

(1) A corporation will face a fine ranging from $5,000.00 up to $16667 if they:

...

(2) For violations under paragraph 1 of this section, the responsible individual within a corporation will be fined between $2,000.00 and $3333.

(3) For violations under paragraph 1 of this section, an individual—including small business owners and sole proprietors—will be fined between $2,000.00 and $3333.

(4) Any items resulting from the violation described in paragraph 1 will be seized and destroyed, and any tools used to commit said violation will also be seized.

(5) A corporation or an individual operating a business may be hit with a protective measure, like a ban on performing certain activities or parts of their business where the infringement occurred. This could last up to one year if the violation is considered particularly severe due to how it was done, the consequences, or other circumstances making it especially bad.

http://www.gov/copyright-statutes

So, if everyone just switched over to Linux, then nobody would have anything to complain about anymore, right?

And what kind of job are you actually doing using nothing but Linux?

Kyle Martin67 said:So if people just switched to Linux, nobody would have an issue, right?

That’s assuming you’re using one of those free Linux distributions like Ubuntu, OpenSuse, or Mint... and that you’re sticking to software that’s actually cleared for commercial use, too.

Benjamin King2 said:What kind of work can you actually get done using just Linux?

Well, we mostly run a computer repair service—so, nothing too crazy there. 🙂

Our current plan—at least until we've saved up enough capital to cover the licensing fees—is to stick with Linux and just run a Windows 7 virtual machine on top of it. 🙂

We’re actually setting that up today; we want to make sure that if an inspector happens to drop by, they see a single, streamlined Linux setup rather than two separate operating systems. Plus, it keeps things free. 🙂

Even for a virtual week, you’re still going to need a license.

Benjamin King2 said:Even if you're running a virtual machine, you still need a valid license for it.

But how exactly are they going to verify that I'm running my virtual machine on Microsoft Windows???

And where exactly do you think you’re going to hide?

There is simply no way to hide them once they catch onto your trail, so don't even bother trying... just take your laptop and get your work done, then if anyone asks, tell them you don't have anything at all..

We’re just going to use Linux and call it a day. 🙂

And, of course, we'll stick to open-source software.