The Federation Against Software Theft (Fast) is getting tough on companies that have a lax attitude to software licensing, following its successes in pursuing individuals distributing business applications illegally.

Fast has recently brought 150 prosecutions against individuals and businesses in the UK for illegally making software available through peer-to-peer file-sharing networks.

The organisation is now embarking on stage two of Operation Tracker to expose employees using corporate networks for similar file-sharing activities. Fast is also looking to prosecute firms that flout the law by using unlicensed software.

‘We are trying to educate businesses that software compliance isn’t a “nice to have”. It is a legal requirement in the same way as paying VAT or adhering to health and safety regulations,’ John Lovelock, director general of Fast, told Computing.

‘How is a director knowingly stealing software and profiting from it any different from someone ram-raiding a computer shop and selling the stolen software at a Sunday market? A thief is a thief.’

He says that Fast’s actions are not about ‘punching directors on the nose’.

The organisation is looking to highlight the dangers to businesses and the cost that software piracy imposes on the UK technology industry.

‘It’s a scary thought that a company’s network could be opened up to 200 million people who form the file-sharing community and who could access other IT systems once they are in. There are some pretty good hackers out there and this is a route in,’ he said.

One of the most pirated type of business software is anti-virus technology, but stealing these products could be a double-edged sword, says Lovelock.

‘It is ironic: people are going to untrusted sites to download pirated anti-virus software. But nothing in this world is free. They could be downloading something that contains malware and various other kinds of key-logging and phishing software,’ he said.

As well as the threats that illegal downloading and pirating pose to other businesses, software theft is seriously affecting the UK software industry.

Research by the Business Software Alliance and researcher IDC shows that 27 per cent of software in the UK is pirated.

IDC argues that if this piracy figure could be reduced to 17 per cent, then 34,000 new jobs in the UK software sector could be created, generating economic growth worth some £11bn, and £2.8bn in tax revenues.

While Fast is tackling software theft, shifts in the market could also help to guard companies’ intellectual property.

‘The different licensing models – such as managed services, software on demand and software as a service – will help, because the software will sit with the owner,’ said Lovelock.

‘We are making progress. When we started in 1984, 45 per cent of all software was pirated or stolen, but that has reduced over the years.’

Software theft…in 30 seconds

*About 27 per cent of all software in the UK is pirated or stolen, according to the Business Software Alliance and researcher IDC.

*The research says even a reduction of this figure to 17 per cent could create 34,000 new jobs in UK IT and lead to economic growth of £11bn.

*Businesses that allow their employees to share software illegally over their networks risk being prosecuted.

*Firms could also be at risk of exposing corporate data and systems to hackers.

*The Federation Against Software Theft, formed in 1984, is lobbying Parliament for changes in the law that would ensure that software copyrights are enforced to the same extent as trademarks.

*Members of Fast include software developers Centennial, BlackSpider, BMC, Borland, CA, F-Secure and WebSense.