opinion

Software Audits Pose Potential Problems for Adult

Piracy is a hot button issue for the adult entertainment industry today, but software publishers have combated the problem for many years; engaging in an ongoing struggle against computer users that think it is “OK” to share and used unlicensed software, from Photoshop to Windows and beyond — many of which periodically “call home” for new updates, revealing the software’s installed location in the process.

Attorney Dan Pepper of the Pepper Law Group recently posted an article on his Technology Law blog (www.informationlaw.com) discussing the pain and expense of software audits, which have been steadily rising during the past decade.

The bottom line is that routine, periodic audits are the only way for software companies to ensure full payment for their intellectual property.

Pepper cites a Gartner report revealing that 61 percent of survey respondents say they were recently audited by at least one software company; with IBM, Adobe, Microsoft and Oracle, claiming the top spots for audits performed.

As for why a specific company might be targeted for an audit, Pepper says that it may be the result of a disgruntled employee acting out of revenge; a software vendor deciding that it was your turn; or perhaps a random audit by an IT compliance agency, such as the Business Software Alliance (BSA).

“The bottom line is that routine, periodic audits are the only way for software companies to ensure full payment for their intellectual property, and they are counted on as a new revenue source when new license revenue is decreasing,” Pepper explained. “Sooner or later, your company can be expected to be selected.”

Pepper says that many companies underestimate the risk of being singled-out and the consequences for non-compliance; and that software policy is not enough for protection.

“Beyond the direct financial costs involved, software audits also impact organizations by disrupting normal business operations, by drawing IT and executive personnel away from the needs of their customers,” Pepper continued. “The financial impact of an audit may include damage to an organization’s brand reputation, and can draw the attention of other software vendors seeking additional revenue.”

The Gartner report notes that if you answer “no” or “I don’t know” to questions such as “How long has it been since a meeting was held on contract compliance and asset management?” or “Does the enterprise have written procedures on software procurement processes?” and “How long has it been since a desktop audit was performed?” that your company presents a high risk of non-compliance with licensing requirements.

“If your company receives the dreaded letter from a software vendor demanding an audit, preparing an effective and comprehensive strategic response is vital,” Pepper concluded. “If your company has not yet received the dreaded letter, and you are at high risk of non-compliance, conducting a comprehensive review of your existing technology licensing agreements to determine the software vendor’s auditing rights is paramount.”

As dedicated as the online adult industry is to preserving intellectual property rights, it should have no problem in ensuring that it is authorized to use the software installed on the computers used to make and market its wares.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Breaking Down AI-Powered Moderation and Platform Safety

Adult platforms, including content sites, cam services and dating apps, consistently face a range of high-risk challenges. These include verifying consent, particularly for user-uploaded content, addressing non-consensual material such as leaks and so-called revenge porn, and ensuring effective age verification and protection for minors.

Christoph Hermes ·
opinion

How to Optimize Subscription Billing for Compliance and Stability

The Federal Trade Commission’s “click to cancel” rule is coming back around. Last year, a federal appeals court vacated the FTC’s Negative Option Rule, aimed at addressing deceptive or unfair practices and making it easier for consumers to cancel online subscriptions.

Jonathan Corona ·
opinion

Key Strategies for Streamlining Payment Processing Approval

Why is it taking so long to get my account approved? It's frustrating for everyone involved, but it's all part of the process. Over the past year, timelines have stretched to 60 days or more for merchants to complete onboarding, from internal compliance review to banking partner approval and final card brand registration.

Cathy Beardsley ·
opinion

What to Know About Alabama's Regulatory Push on Adult Content

Over the past two years, Alabama has quietly but aggressively transformed itself into one of the most restrictive and unfriendly jurisdictions for the adult entertainment industry. Through the enactment of House Bill 164 and related enforcement mechanisms, the state has layered taxation, compliance burdens and content restrictions in a way that goes far beyond traditional regulation.

Corey D. Silverstein ·
profile

Chaturbate's Emely Zuniga Talks Show Floor Magic and Creator Care

During industry events, you’ll likely find Zuniga gliding through the room, greeting creators, checking details and making sure everyone around her feels taken care of. With her colorful red hair, perfectly done nails and an easygoing, “work bestie” demeanor that instantly puts people at ease, she thrives in the fast-paced environment of conferences and trade shows.

Jackie Backman ·
opinion

What to Know About Deepfakes, Likeness Rights, and Digital Consent

AI is reshaping virtually every sector of the global economy, and the adult industry is no exception. Many adult companies have already explored or adopted AI in content production, and surveys indicate that around 65% have considered implementing AI technologies in their operations.

Christoph Hermes ·
opinion

Key Strategies for Adapting to Stricter PCI Compliance Standards

When it comes to PCI compliance, the days of simply filling out some paperwork and answering a few questions are gone. A casual approach is just not viable anymore.

Jonathan Corona ·
opinion

How to Maximize Value From Your Payment Processing Fees

Regulatory requirements are putting more and more pressure on the adult industry. To stay compliant, merchants need tools that help with content moderation, age verification and fraud solutions. Unfortunately, the fees for those tools are hitting merchants’ bottom lines — including fees charged by payment services providers.

Cathy Beardsley ·
opinion

Understanding Sin Taxes and the Legal Roadblocks Ahead

As of this writing, a bill sits on the desk of Utah’s governor, awaiting his signature to make it state law. That bill includes a provision imposing an excise tax of 2% on adult sites operating in the state.

Corey D. Silverstein ·
profile

LoyalFans' Anastasia Pierce Bridges Creator Education, Empowerment and Ownership

Anastasia Pierce beams when she talks about her 26 years in the industry. Full of passionate energy, she clearly doesn’t just work in adult; she loves it.

Women In Adult ·
Show More