Software Piracy: What You Don't Know CAN Hurt You

Business owners must continuously upgrade their firms' software to compete in today's fast-changing, information-rich economy. But new software can be expensive: For example, you'll pay around $450 for the latest Microsoft Office suite, and some companies license hundreds or even thousands of copies of some applications.

As a money-saving tactic, you might be tempted to use free or cheap pirated software. Avoid that temptation. Even apart from ethics, there are good reasons to stay on the straight and narrow. Such reasons range from potential computer problems to hefty fines for getting caught.

When you open the software box, you enter into a license agreement with the person or company that owns its copyright, usually the software publishing company. You don't buy the software itself — only a license to use it. The license agreement allows you to make backup copies of the product, but prohibits you from distributing it.

As a software purchaser, here are some of your obligations: