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 © 2024 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

Navigating Fraud Prevention in Credit Card Transactions

In the digital age, credit card transactions are essential to global commerce, providing unmatched convenience for consumers and businesses alike. With this convenience, however, comes the risk of credit card fraud, which can result in considerable financial losses and harm brand reputation.

Jonathan Corona ·
opinion

A Guide to Avoiding Scams in Hard Link Media Buying

‘If it sounds too good to be true, it probably is.” So cautionary wisdom reminds us, yet people still get scammed all the time. Fortunately, there are “red flags” you can watch for to help you identify scams and thereby avoid them.

Juicy Jay ·
opinion

The Dos and Don'ts of AI-Generated Content

AI is a hot topic. From automation to personal assistance to content generation, AI technology is already impacting our daily lives. Many industries, including adult, have had positive results using AI for customer support and marketing.

Cathy Beardsley ·
opinion

Strategic Upscaling of Non-4K Content

If content is king in adult, then technical quality is the throne upon which it sits. Technical quality drives customer acquisition and new sales, while cementing retention and long-term loyalty.

Brad Mitchell ·
profile

Hayley Davies: From New Zealand Math Nerd to Fast-Rising Adult Star

Growing up, New Zealander Hayley Davies was a proud nerd who participated in mathematics competitions against students from much higher grades. Her good looks turned out to be a kind of secret weapon, causing peers to underestimate her intellectual acumen.

Alejandro Freixes ·
profile

WIA Profile: Inka Winter

Award-winning erotic filmmaker and ForPlay Films founder Inka Winter knows what she wants her films to be, and what she doesn’t want them to be. She seeks to depict sexuality that is mindful, based in human connection and trauma-informed.

Women In Adult ·
profile

'Traffic Captain' Andy Wullmer Braves the High Seas as Spirited Exec

Wullmer networked and hobnobbed, gaining expertise in everything from ecommerce to SEO and traffic, making connections and over time rising through the ranks of several companies to become CEO of the mobile business arm of TrafficPartner.

Alejandro Freixes ·
opinion

To Cloud or Not to Cloud, That Is the Question

Let’s be honest. It just sounds way cooler to say your business is “in the cloud,” right? Buzzwords make everything sound chic and relevant. In fact, someone uninformed might even assume that any hosting that is not in the cloud is inferior. So what’s the truth?

Brad Mitchell ·
opinion

Upcoming Visa Price Changes to Registration, Transaction Fees

Visa is updating its fee structure. Effective April 1, both the card brand’s initial nonrefundable application fee and annual renewal fee will increase from $500 to $950. Visa is also introducing a fee of 10 cents for each settled transaction, and 10 basis points — 0.1% — on the payment volume of certain merchant accounts.

Jonathan Corona ·
opinion

Unpacking the New Digital Services Act

Do you hear the word “regulation” and get nervous? When it comes to the EU’s Digital Services Act (DSA), you shouldn’t worry. If you’re complying with the most up-to-date card brand regulations, you can breathe a sigh of relief.

Cathy Beardsley ·
Show More