August 3, 2006
Law Firms at Risk for License Violations
A few years ago Gartner, Inc., the Connecticut-based technology consulting company, issued a warning: Software vendor license audits are on the increase!
Law firms as an enterprise are susceptible to unintentional license violations due to the independent actions of individuals in the firm. Typically, law firms do not exercise tight central control. Staff, associates and partners may share interesting software. License and copyright violations aren’t limited to software. In a prior post, I related the story of meeting with a young professional who offered me a CD—a copy of a new release by an artist we both like. He explained that his firm had a CD burner and when he or some of the other associates purchased a new CD, they made copies and shared them.
Gartner notes that “a software audit can have a major impact on your organization. Know whether your software licenses are in compliance, or face fines and productivity losses.” But for a law firm, the negative PR, especially for firms with an intellectual property practice, could be even more costly. From the perspective of prospects and existing clients, law firms are supposed to protect the intellectual property of clients, not rip them off. From a risk management standpoint, the firm should take clear and strong steps to avoid unintentional piracy within the law firm.
As I noted in the prior post Pirates within the Law Firm,risks are higher today due to erosion in the respect individuals have for intellectual property rights. This is especially true among members of “Generation Y,” who grew up with a no-holds-barred internet. The Business Software Alliance reports that two-thirds of college students now think it is okay to copy, download, and swap copyrighted works.
To protect the firm and its partners from liability and damaging publicity, the firm needs to establish and publish a policy against use of any firm equipment or facilities in violation of the intellectual property rights of others. Specifically, the policy should state that except for “fair use”, copyrighted materials should not be copied and distributed to others. Downloading and swapping copyrighted files are prohibited. Duplicating software, except for vendor licensed purposes, is unlawful. Using unlicensed copyrighted software is likewise prohibited. The policy should state that, considering the ethical and professional expectations regarding the conduct of an attorney, violation of intellectual property rights by employees and members of the law firm (even if occurring away from the office and without use of firm equipment) could lead to termination.
The issue is also important for the law firm’s clients. You can add value to your role as trusted advisor by bringing this issue to the attention of clients. Doing so can lead to billable work assisting clients in the development of an antipiracy policy and procedures.
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Filed under Policies/ Procedures, Risk managment by Tom Collins