For manufacturers, there’s also the indirect downtime costs, delivery delays and customer angst to manage. These episodes can turn a company upside down for weeks, if not months. Some companies don’t realize that’s where the nefarious contamination began, but it’s a plausible source now.Īccording to the BSA – The Software Alliance, malware from unlicensed and counterfeit software costs companies nearly $359 billion each year. It can be encrypted with computer malware, ransomware and viruses.
Just over the last year, infected counterfeit software has increased significantly. Second, the infringers could be held up for ransom to restore systems. All of that investment in nurturing those relationships is lost - all over a piece of software. That’s not only embarrassing, but those customers will likely become former customers, putting even future revenue at stake. If that doesn’t happen, then our legal representatives might have to contact their customers to find out how much they paid the infringers so that we have an accurate accounting. Those fees can mount up to $150,000 per license per version of software, plus the legal fees of all parties and any profit that was made using the product. Once identified, we initiate a potentially costly campaign to convert them to legal users - costly for the infringers, that is. In our case, in the CAD/CAM sector, we have undertaken a much more concerted and systematic effort in recent years to discover infringers, and we do discover them every single day. Most people use illegal software to “save money.” Huh? Maybe they don’t have to shell out the full price for each license used in their shop, but they are losing much, much more than license fee costs - both directly and indirectly.Īs the use of various manufacturing software programs has grown, so have the companies that develop the software along with their dedicated compliance departments. Even if I wasn’t in the software business, the decision to risk using counterfeit software confounds me.
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