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SIIA Offers Whistleblowing Cash Rewards

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The Software & Information Industry Association (SIIA) granted its first whistleblower cash reward in January 2004 for $2,000. The largest award was reported in December 2004 for $5,000.

As stated in the December 2004 press release by the SIIA,

The Anti-Piracy Reward Program is specifically designed to encourage workers to come forward, since employee tips are an invaluable tool in the fight against software piracy. In exchange for providing detailed information about the extent and type of piracy occurring, and cooperating during SIIA’s investigation, program participants are entitled to a portion of the fine paid by the offending company.

Rather than audit computers for compliance, a supervisor was quoted as saying, “Getting caught and paying the fine is cheaper than tracking licenses.” The company settled the case, paying a $115,000 fine to SIIA. The actual cost of a compliance event like this can easily run three to six times the amount of the settlement.

Did it stop there? No. The company was required to purchase licenses, often at three to four times the going rate. Further, the company was required to implement software usage policies and procedures.

Is that it? Nop. The company will likely be under the SIIA microscope for a few years to come.

Moral of the story: Listen to your employees. A SAM or ITAM program can protect your company from anit-piracy actions while generating a positive instead of negative cash flow. These programs pay for themselves, plus!