GUIDELINE
3607.02
DISC
Bureau of
Information
Resource
Management
Effective Date
08/15/2002
Review Date
08/2002
1.0 SUBJECT: Copying Vendor Software
2.0 DISTRIBUTION: Current Users and State Agencies
3.0 FROM: Bruce Roberts, Director of DISC
4.0 PURPOSE: To inform employees about the restrictions on copying vendor software and documentation.
5.0 BACKGROUND: Because the software industry is relatively new, and because copying software is so easy, many people are either unaware of the laws governing software use or choose to ignore them. DISC has had a written guideline on copying vendor software since 1986. Since 1988, the Washington-based Software Publishers Association has been actively policing the use of pirated software. Representing 792 software companies, the Software Publishers Association is chartered to promote, protect and inform the software industry. Recent prosecutions by the SPA have resulted in fines of hundreds of thousands of dollars.
DISC wants to assure that state employees are aware of the copyright laws and the Software Rental Amendments Act passed in December of 1990, and that employees are complying with these laws. By doing so we want to save the State the embarrassment and expense of prosecution.
The copyright law is clear. The copyright holder is given certain exclusive rights, including the right to make and distribute copies. Title 17 of the U.S. Code states "it is illegal to make or distribute copies of copyrighted material without authorization" (Section 106). The only exception is the users' right to make a backup copy for archival purposes (Section 117).
The copyright law makes no distinction between duplicating software for sale or for free distribution. The law protects the exclusive rights of the copyright holder and does not give users the right to copy software unless a backup copy is not provided by the manufacturer.
While it has always been illegal to rent unauthorized copies of software, Public Law 101-650, the Software Rental Amendments Act of 1990, now prohibits the rental, leasing, or lending of original copies of commercial software without the express permission of the copyright holder.
Unauthorized duplication of software is a Federal crime. Penalties include fines of as much as $100,000 and jail terms of up to five years. Governmental and educational institutions are not exempt from the copyright laws.
Although the copyright statute allows exceptions to the practice of copying of software, an individual who copies software for archival or programming purposes may still violate a vendor's license or contract rights. Thus, the vendor may be able to sue the state if an employee complies with copyright laws but violates the vendor's license agreement.
6.0 PROCEDURE: State agencies should carefully read all agreements and information printed on the wrappers of software products before breaking the wrapper. By breaking the wrapper, the user of the software implicitly agrees to the terms and conditions of the license. If there are any questions concerning the software license, the vendor should be contacted for clarification.
The SPA recommends that a governmental agency demonstrate its intent to enforce the copyright laws by:
1) Having a software copying policy displayed.
2 Presenting the policy at orientation.
3) Providing written notification to each employee who uses vendor software.
The notification should state that:
a) The State of Kansas licenses the use of computer software from a variety of outside companies. The State of Kansas does not own this software or its related documentation and, unless authorized by the software developer, does not have the right to reproduce it.
b) With regard to use on local area networks or on multiple machines, the State of Kansas employees shall use the software only in accordance with the license agreement.
c) State of Kansas employees learning of any misuse of software or related documentation within their agency shall notify the department manager or the agency's legal counsel.
d) According to the U.S. Copyright Law, illegal reproduction of software can be subject to civil damages of as much as $100,000 and criminal penalties, including fines and imprisonment. State of Kansas employees who make, acquire or use unauthorized copies of computer software shall be disciplined as appropriate under the circumstances. The State of Kansas does not condone the illegal duplication of software.
4) Performing periodic software audits.
5) Ensuring enough money is budgeted to buy sufficient software for hardware purchased.
A copy of an employee notification is attached. The employee should sign and date the notification and it should be kept on file by the agency. Each employee should locate the original documentation and diskettes for any software on their micro-computer. If original documentation and diskettes are not present, they should obtain approval for and order the software or delete it from their system.
The Software Protection Agency has a variety of materials about the legal use of software. Their Self-Audit Kit describes procedures appropriate for ensuring that a business or organization is "software legal." The Kit includes SPAudit, a software management tool, and is available free of charge to businesses and organizations. In addition, the SPA has a 12 minute videotape on the subject of software piracy entitled "It's Just Not Worth The Risk." The video is a useful tool for instructing users about the legal use of software products. Call the Customer Support Center, 913©296-4999, if you are interested in obtaining any of these materials.
7.0 HISTORY: This publication was originally issued as Guideline 3607.00 dated 10/14/1991, Re-issued #3607.01, 04/29/1994, Re-issued #3607.02, 08/15/2002.
8.0 CONTACT PERSON: Information Resource Manager, 785-296-3463
ATTACHMENT: Sample Agency Employee Agreement
SAMPLE AGENCY EMPLOYEE AGREEMENT
(Agency) Policy Regarding the Use of PC Software
1. (Agency) licenses the use of computer software from a variety of outside companies. (Agency) does not own this software or its related documentation and, unless authorized by the software developer, does not have the right to reproduce it.
2. With regard to use on local area networks or on multiple machines, (Agency) employees shall use the software only in accordance with the license agreement.
3. (Agency) employees learning of any misuse of software or related documentation within the company shall notify the department manager or (Agency's) legal counsel.
4. According to the US Copyright Law, illegal reproduction of software can be subject to civil damages of as much as $100,000 and criminal penalties including fines and imprisonment. (Agency) employees who make, acquire or use unauthorized copies of computer software shall be disciplined as appropriate under the circumstances. Such discipline may include termination. (Agency) does not condone the illegal duplication of software.
I am fully aware of the software protection policies of (Agency) and agree to uphold those policies.
________________________
Employee Signature and Date