Take for instance a simple cost-cutting measure taken by many small businesses and SOHOs: using the pre-installed version of Microsoft Office that comes with many new PCs.  These are bundles aimed at consumers, so the Office that’s included is almost always Microsoft Office Home & Student Edition. It provides the needed functionality if you’re a mom and pop type of business or are self-employed; and is, of course, cheaper than buying the separate Microsoft Office Home & Business.

But beware.

“This distinction is significant, because the license agreement prohibits the Student or Academic version from being used in a commercial setting,” explained Keli Johnson Swan, an attorney at Scott & Scott LLP, in an article.

And that means that, under the Copyright Act, Microsoft as the software publisher can pursue copyright infringement claims against the business for failing to adhere to specific terms of the license agreements.

“Unfortunately, some businesses find out too late that this is a costly mistake that not only involves a penalty, but also requires the business to purchase the appropriate version in addition to the penalty,” Johnson Swan added.

And don’t think that a business can simply fly under the radar because it’s small. She noted that Microsoft (and its authorized copyright enforcement entity, the BSA/Software Alliance) tends to initiate software audits to ferret out and pursue copyright infringement claims.

“If a company is found to have improperly licensed software, Microsoft or the BSA will demand a penalty for the allegedly unauthorized use of the software, often up to three times the MSRP value of the product at issue,” she said.

And of course, Microsoft is not the only software publisher that offers academic or student versions of products that are less expensive. Autodesk for instance is offers student versions of its design software—all of which also contain commercial use restrictions.

“Ultimately, it is the consumer’s responsibility to ensure the proper license is purchased for the software installed, regardless of whether a software vendor, or even a representative of the software publisher itself, originally sold the products to the consumer,” Johnson Swan warned.

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When someone mentions a news agency, you probably imagine paper-strewn, open-floor offices, or swarms of reporters surrounding noteworthy people as they exit buildings and cars, or correspondents talking into video cameras outside barricades and inside studios filled with flat screens. But one thing you probably don’t think of is the software built to support these organizations and the technologies involved.

Like most industries today, the news is going digital—and that means transitioning from the age of newsprint to the age of online reporting. As a result, the Washington Post and many other organizations have developed their own content management systems to publish stories online. But, the Post is taking the age of digital news a step further by making itself a kind of tech company, in addition to a news source. That’s because it is now looking to license its software to some of the smaller newspapers already licensing and republishing news from the Post.

The move doesn’t come as a surprise to many, considering that the newspaper was bought by Amazon chief executive Jeff Bezos for $250 million last year. As the print industry continues to wane, the newspaper believes a software licensing business could help bolster its finances while further establishing itself as a tech savvy and relevant source.

“In the short and medium term, print provides the money until digital can become self-sustaining over time,” Steve Hills, Washington Post president, told the Financial Times. “In the very long term, the battle is all about digital. We’re taking that Jeff Bezos long view.”

The belief that newspapers should become more like technology companies is shared by others within the Post. Editor Martin Baron described the company as “more of a technology organization” since Bezos bought it last year, adding that Bezos “understands our technology needs to be at the forefront of what we do.”

Will software licensing be the financial foothold so many newspapers today are seeking as print publishing falls into obscurity? It’s too soon to tell, but the Postis making a strong case for the business model. 

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