Corporate Software Anti-Piracy Program

The Corporate Anti-Piracy program is driven by source reports. A person we refer to as "the source" notifies SIIA that a particular company is using illegal software. Sources can contact SIIA about a company we refer to as the "target"'s alleged non-compliance in three ways: by e-mail (at piracy@siia.net), a telephone call (1.800.388.7478), or a web-based form (www.siia.net/piracy/report). Usually the source is a current or former employee, member company, vendors, or other person with first-hand knowledge about a company's IT operations.

We receive about 120 to 150 reports a month. After we are contacted by the source, we follow up and ask him or her detailed questions about the target (e.g. how many computers/employees at the target? What software is in use on the computers? How much is licensed? Does management know about the piracy? What does/did the source do at the company, etc.). We then review the reports and the answers to our follow up questions and test them for veracity and credibility. We use these tests, in combination with other factors, to decide whether to pursue a given case.

Our approach is very conservative. We will only pursue a case where we feel very certain that we have reliable and extensive information that the target company is pirating software. As a result, we pursue only about 20-25 of the 120-150 reports we receive a month. Therefore, if a company is contacted by us about software piracy, that company should know we have some very reliable and credible information demonstrating such piracy.

Once we decide to pursue a case, SIIA or its outside counsel contacts the president of the target company via letter and phone to request that the target company engage in a voluntary software audit of all its computers. More often than not, the company does conduct an audit. When an audit is conducted, the company will provide SIIA with a copy of the audit results that show the names and number of software programs it has loaded onto its workstations. The company will also provide SIIA with documentation to prove that it has sufficient licenses for the software. One of three outcomes ensues:

• If unauthorized software is found, the company must license sufficient copies of the software, pay a fine that is equal to three times the cost (MSRP) of the software and adopt and implement company-wide software compliance policies. The licensing requirement generates new revenue for SIIA member publishers. The fine is retained by SIIA to support our anti-piracy activities.

• If the target participates in this audit process, and no unauthorized software is found, the case is closed.

• If the company refuses to conduct an audit, SIIA may sue the company for copyright infringement on behalf of its members.

• Types of Copyright Liability for Software

• SIIA Policy Statement on the 24 hour Rule and Abandonware

• Software Policy and Employee Usage Guidelines
  Revised April 2003

• Employee Internet Usage Policy

• Is it OK to Copy My Colleague's Software?

• Ten Commandments of Software Compliance

Corporate Content Anti-Piracy Program (CCAP)

For close to 20 years, SIIA has conducted a very successful corporate anti-piracy program for its software company members. With the ubiquity of the Internet and high-speed connections, piracy of published content such as newspaper articles, magazine articles, newsletters, newswire services and financial reports is growing. While new tools for tracking and combating such piracy are becoming available, the problem is still significant. SIIA created this "corporate anti-piracy program" for content companies, modeled after our program for software in order to assist members in protecting their works. The goal is to pursue and remedy the illegal use of published content - whether in print form or electronically - within corporations. A separate SIIA program called the Internet Anti-Piracy Program addresses public infringement such as pirate websites and auctions of content.

The CCAP program is driven by SIIA member referrals and third-party "source reports." A person (referred to as the "source") notifies SIIA that a particular organization (referred to as the "target") is copying and/or distributing unlicensed or under-licensed content. Sources can contact SIIA about an organization's alleged non-compliance in three ways: by e-mail (at piracy@siia.net), a telephone call to 1.800.388.7478, or a web submission. These reports come from disgruntled employees, former employees, member companies or their customers, vendors, or other people with first-hand knowledge about an organization's content management and use practices. To ensure that we get reliable information, we do not reveal the identities of those who submit the reports and we offer rewards of as much as $1 million.

Once the source report is received, SIIA follows up with the source and asks him or her detailed questions about the target (e.g. How many computers and/or employees are at the target? What content is believed to be on the computers? How much is licensed, unlicensed or under-licensed? Does management know about the infringement(s)? What does/did the source do at the target, etc.). SIIA then reviews the report and the answers to the follow-up questions to determine how reliable the report is and whether to pursue the case.

The organizations that become targets usually are those that are engaged in systematic, business-related copying and distribution that is not remotely close to being a "fair use." They cannot claim their infringement was innocent or non-willful since most content bears clear notices of copyright. While even occasional, small-scale copying without the proper license can constitute infringement, we typically pursue organizations engaged in continuous widespread copying and distribution, or those that do so less frequently but on a large scale.

SIIA then notifies the participating publishers whose products were identified by the source and seeks their written authorization to pursue the case on their behalf. Once the authorization is received and a decision to pursue the case is made, SIIA forwards the case to its outside counsel. Counsel contacts the president of the target company via letter and phone to request that the target company engage in a cooperative investigation of its workstations to determine the extent that the content was copied and/or distributed and, as appropriate, disclose to SIIA other places the content can be found.

After the target conducts the investigation, it provides SIIA with a copy of the results documenting the quantity and titles of the content it has in its possession. The target will also provide to SIIA license documentation that proves it has sufficient or insufficient licenses for the content. From here, there can be one of three outcomes:

1. If unlicensed or under-licensed content is found, the target must (among other things) delete the infringing content, obtain sufficient licenses or other appropriate permissions, pay statutory damages (determined on a case-by-case basis), and adopt and implement company-wide content compliance policies. In return, SIIA releases the target from any liability it would otherwise have had under the copyright law.

2. If the target participates in this cooperative investigation, and no unlicensed or under-licensed content is discovered, the case is closed.

3. If the target refuses to conduct a cooperative investigation, SIIA may decide to sue the company for copyright infringement on behalf of the publishers participating in the program. As in most disputes, SIIA considers litigation as the alternative of last resort. Nevertheless, if a target refuses to cooperate, SIIA will - as it has done in the past - sue that organization for infringement of its members' content.

Examples of Content Piracy

• Circulating copies of news, magazine, or newsletter articles by e-mail or hard copy (even if only internally within your company)
• Posting news, magazine, or newsletter articles on a website (even if they are also posted on the copyright owner's web site), rather than posting the relevant hyperlink
• Posting chapters from a textbook or novel on a website
• Internet auctions for scanned textbooks on CD. Watch out for books that have been scanned into an electronic format and then burned onto a CD. Check to make sure that you are receiving the entire original book and that you are also receiving any and all complementary materials such as CDs or charts in their original form.
• Illegally posted news stories on a website. Links to articles hosted on the copyright owner's site are perfectly legal.
• Distribution of Test Prep Materials. Most test prep courses do not allow the transfer of their material from person to person. These materials include text books, sample tests, lectures, lecture notes, computer based reviews, etc.

• Content Compliance and Fair Use

• Content Compliance and the First Sale Doctrine