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Introduction
Did you recently receive a demand letter from a law firm asking you to submit to a voluntary software audit of your company’s computers, servers and laptops? If so, like many companies’ you may be asking “how did they figure this out.” This is a question just about every company asks me when they call for a free initial consultation.
Here are some of the top ways that I believe Autodesk might have found out that your company is or was using software illegally without the proper licensing proof for each copy installed. This is not an exclusive list, but these are some of the top theories we have explored in my experience as a software licensing lawyer having helped many different types of companies across the United States in licensing audits with Microsoft, BSA, SIIA and other vendors, and with Autodesk audits initiated by the Donahue FitzgeraldLLP law firm that handles many of these cases.
An “informant” told them your business is not properly licensed.
This I would say has to be the number one way Autodesk might learn of software piracy, in my opinion. So many of the copyright cases I handle deal with a recent firing of CFO, CIO, employee, or IT director, (sometimes when the company fights unemployment insurance claims), or other type of “whistleblower” cases where someone has first hand personal knowledge of the servers, networks and computers within a company, and felt then need to report illegal usage by a various departments of an architect, engineering or design firm.
As a software attorney, we try to find out what the “source of the audit” is, although pursuant to both the software alliance (BSA) and the SIIA policies, these trade organizations will guard this information closely and not reveal the name or identity of the informant unless the case goes to litigation. Autodesk has a similar policy of NOT DISCLOSING INFORMANT INFORMATION or the substance of any reports or declarations they may have received. Nevertheless, we know this is one of the main ways they will find our your business is using unlicensed software.
Click here to see one software alliance anti-piracy advertisement I ran across touting informant rewards up to one million dollars. Naturally, ads like these will draw some interest from those employees who have 'one foot out the door' and suspect corporate widespread piracy.
Someone at your company illegally downloaded software on file sharing websites such as Bittorrent or Kickass Torrens and used “crack codes” or “crack tools” to access their products
This is another way that can come up during the audit process. As copyright counsel, I might be told “ask your client about their use of “crack codes” or “key generators” to access our products.” This is a not-so-subtle “hint” that Autodesk might have knowledge of downloading illegal software on P2P (peer-to-peer) files sharing websites like bittorren and may involve illegal software cracking tools. These cases are seen as very serious to any software company that is pursuing an investigation, and depending on the levels of infringement, there are possible criminal copyright implications that can arise, and a possible referral to federal authorities. In most cases, however, the alleged copyright infringement can be resolved CONFIDENTIALLY and civilly without resort to United States Attorney General’s office, the FBI, CIA, Postmaster General or other federal legal authorities.
You posted a job posting looking for a CAD technician and when Autodesk looked up your company they did not find any licensed registered software.
There are other ways your company may find itself on the radar of IP counsel for major software companies like Adobe, Microsoft, and others. Another example can be where your company recently posted a job ad or “help wanted” ad on major job websites such as Monster.com, Indeed, Craigslist, Career Builder, Job.com or others. If you are posting an ad for your “growing architecture firm” or “expanding our engineering department” and the ad seeks persons skilled in AutoCad or any of the other products listed below, this would seem to suggest that your company is already using the software (sometimes it is a student version or trial version).
It is not clear to what extent Autodesk is looking at these ads, if at all, but we have had several recent cases where clients have told us “it had to be that CAD job posting we recently posted.” This is another way we believe they may find out your business might be using illegal software, and it appears this could be one ground which can trigger one of their attorneys sending the “software audit demand letter.”
Note, the audit is normally considered to be “voluntary” but for most companies it does not always feel that way. Sometimes a client may be read the riot act and be told they are risking a willful copyright infringement case with damages or penalties in the amount of $150,000 per infringed title. Most cases can be settled privately at far less than this amount, yet it is the risk that goes with willfully infringing a software vendors products. We have talked about Defenses to Copyright Infringement in other podcasts and videos.
Click here to See Attorney Steve video on Copyright Infringement Damages
Your social media profile on LinkedIn shows you being an expert in products such as Autocad, LT, or Revitt, yet there is no proof of licensing any versions of their software
This is another variation of the job-posting discussed above, except in this example, perhaps your design firm is touting its credentials in “CAD Design” on an employees, or owners social LinkedIN page. In fact, one Autodesk lawyer told me ‘check your Clients linked in page, he is touting all his experience in Revitt or Autocad, but we see no licensed copies.’ These are the types of cases that can also trigger an audit demand letter from the Donahue Fitzgerald firm.
An IT “consultant” installed software on your networks and then reported you to seek a reward
This is another variation of the informant scenario (discussed above), but this may involve a “software vendor” or IT “contractor” actually installing bootleg software and then reporting this to the Business Software Alliance, or Autodesk. Again, we cannot confirm this, but this has been the subject of several discussions with our Clients that suspect the consultant they hired off Craigslist or Angie’s List sold them software at an extremely low price, and then may have turned around and reported the company months later. This is simply one theory that has surfaced.
You submitted a “crash report” to Autodesk and they found out your company is not properly licensed as a user.
Sometimes, if your engineering company or architecture firm is using Autocad, the software will “crash.” For example, when switching tabs, drawing lines, copying and pasting things, or zooming.
This will generate a “crash report” that could be sent to Autodesk. The same thing happens with Microsoft software. Some companies use a 'phone-home' technology to report back software installations on your network. They claim the EULA you (clicked) 'I agree' to authorized them to monitor installations of their software on your computer networks.
Click here to see an example of a software crash report page. These reports can basically send a signal to Autodesk, and the ping may cause someone to find out your IP address and other information, and lead Autodesk to investigate whether or not the software is properly licensed. If true, this is yet another way you may find yourself preparing to respond to a licensing verification audit that seeks your company to affirmatively prove that it has properly licensed their software (by showing proofs of purchase for all software being used). We have helped companies across the United States handle these investigation letters that implicitly threaten potential civil liability.
Note: We have discussed on other blogs how company officers and directors could potentially be held liable in these types of cases. Again, many times this will not become an issue if the case is handled and settled privately, as many are.
A authorized reseller or SAM (Software Asset Management) person may come to your office, notice shortages and be obligated to inform Autodesk per their agreements.
This is another one that we believe has surfaced before, again, not verified but something one Client we had believed happened. You invite an authorized representative to come to your office, and they notice Dell or HP computer that your company purchased OEM (Original Equipment Manufacturer), but the representative notices you are running unlicensed versions of Autodesk, 32 or Revit. If they report back, you might get the 'love letter' from Autodesk asking you to engage in an audit, probably more likely if you never moved forward to purchase any software after being notified of same.
TIP: Remember with the OEM you want to make sure your receipts note that you purchased not only the HP or DELL laptop or computer but ALSO purchased software. Usually this is more of a Microsoft issue (with the Word, Excel Office products) than anything else.
You foolishly posted on their website or another tech support website (message board) seeking help with the product and they look you up and find out you are asking for help with a product you don't even have licensed.
What are some of the main types of products that may be at issue in Autodesk software audits
Here are some of the main products that may be the subject of receiving a software audit demand letter from a trade association or intellectual property law firm, (Donahue & Fitzgerald is likely the attorneys you might receive a letter from):
AutoCAD 2013
AutoCAD 2014
AutoCAD Architecture 2013
AutoCAD Architecture 2014
AutoCAD Civil 3D 2013
AutoCAD Civil 3D 2014
AutoCAD Electrical 2013
AutoCAD Electrical 2014
AutoCAD Electrical 2015
AutoCAD Electrical 2016
AutoCAD LT 2013
AutoCAD LT 2016
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AutoCAD MEP 2013
AutoCAD MEP 2016
AutoCAD Map 3D 2013
AutoCAD Map 3D 2016
AutoCAD Map 3D Enterprise 2013
AutoCAD Mechanical 2014
AutoCAD Mechanical 2015
AutoCAD P&ID 2013
AutoCAD P&ID 2014
AutoCAD P&ID 2016
AutoCAD Plant 3D 2013
AutoCAD Plant 3D 2014
AutoCAD Plant 3D 2016
AutoCAD Raster Design 2013
AutoCAD Raster Design 2015
AutoCAD Raster Design 2016
AutoCAD Structural Detailing 2013
AutoCAD Structural Detailing 2014
AutoCAD Utility Design 2013
AutoCAD Utility Design 2015
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AutoCAD Ecscad 2013
What to do IMMEDIATELY when you receive a letter seeking an audit of your business
It is important to know your software audit rights. The first and most important thing to do is to not talk to anyone else and call a lawyer. You will want to have your letter reviewed by experience IP counsel.
Do not immediately run out and delete software. If your case goes to court, showing deletion of software could help them prove their case.
Do not immediately run out and try to buy software hoping that will make the situation go away. Usually, that will not help and they will still be seeking infringing and past use penalties.
We can help you try to understand the process and let you know what you can expect. We hope this blog has been helpful.
Again, this is not an exclusive list of the ways your company can get caught in a licensing dispute, but this should give you some general ideas.
We can be reached at (877) 276-5084. We have offices in San Francisco (serving the Northern District Federal Courts, California San Diego, Newport Beach, Santa Monica (serving greater Los Angeles area) and Phoenix, Arizona.
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We can help any company facing potential threats of copyright infringement in the United States. This has included companies from Canada dealing with United States software vendors.
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We can also help with Siemens audits, Vero software, VB conversion, Microsoft SPLA audits, Solidworks and other vendors. We have experience working with large accounting companies such as KPMG. Call us for a free quote. We offer flat rate legal fees for most engagements.
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For more detailed information, blogs, videos and other helpful tips check out our main website at www.SoftwareAuditLawyers.com. Also, any company facing an audit should review our free software audit checklist.
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September 2020 Autodesk update: Autodesk is continuing to audit current customers (contractual audits they call them), and may try to force you to install their Scan Win software. I will typically ask them Show me proof of the agreement, who signed it, and how Scan Win is required. I do not want to risk running third party software on my clients networks unless (a) it is required and (b) they agree to indemnify for any bugs, viruses, or harm caused to my clients computers, laptops, and servers. This is general information only.