Unauthorized copying of original software violates the Federal Copyright Act of 1976. This law protects the exclusive rights of the copyright holder (e.g., software vendors) and does not give users the right to copy software, except to make one backup copy. Software users should be aware that under common law agency principles, employers are responsible for certain acts committed on the job by employees.
When employees commit acts of copyright infringement, the employer may be held liable, even if key managerial employees are unaware of such acts. Unlawful copying of software can produce the following risks:
- lawsuit for illegal practices
- unfavorable publicity
- susceptibility to viruses
- no upgrades
- absence of documentation
- no customer support
Departments should ensure that software is installed on workstations in accordance with copyright laws. It is important to read each software package's copyright statement. There are various types of licenses available.