DALLAS, TX, December 12, 2005 – Scott & Scott, LLP, a prominent legal and technology services firm, today announced advice for companies seeking to ensure software license compliance and avoid fines in the New Year.
Industry experts predict an increasing probability that companies will be subjected to external software audits by the BSA, SIIA and publishers themselves. As these organizations continue to ratchet up their enforcement efforts in an increasingly mature software market, Scott & Scott, which provides software license compliance and audit defense services, advises companies to implement the following procedures into their business practices:

• View License Compliance With a Technology and Legal Mindset: Software license agreements are contracts, each of which is lengthy, unique and complex. Scott & Scott advises companies to use legal professionals with licensing expertise to help them interpret these contracts.
• Create Standardized Agreements With Publishers: Many companies do not realize that they have leverage when negotiating license agreements with publishers. In fact, companies can develop favorable software license provisions with the assistance of their own legal counsel and require inclusion of those provisions as a condition of doing business. Favorable provisions can include “no audit” clauses or voluntary “true-ups” to reduce the costs of compliance management and the total costs of ownership.
• Retain Proofs of Purchase and Keep Accurate Records: Contrary to popular belief, trade associations and publishers only accept dated proofs of purchase, with an entity name matching that of the audited company. Anything less will fall short of publishers’ mandated proof of ownership and therefore, repurchase of the assets in question may become necessary. Proper record keeping is the key to audit-readiness.
• Choose Integrated, IT Asset Management Tools: Asset management should be built into every company’s ongoing business processes to ensure that asset management and compliance become core competencies. The ability to conduct routine reconciliations is required to ensure software license and Sarbanes-Oxley compliance. The implementation of a carefully selected, integrated and IT asset management solution will help save money and ensure that license compliance becomes part of the company’s culture.
  

• Obtain Expert Assistance in the Event of An Audit: Audit defense is most effective with the representation of specialized legal counsel to avoid the common mistakes that may jeopardize a company’s legal position. Finally, any automated discovery that is conducted under the supervision of legal counsel will be protected by attorney-client and work-product privileges, should an out-of-court resolution not be possible.

“As companies look to the new year to assess and improve their IT, legal, and regulatory compliance, they should put IT asset management toward the top of their lists,” said Rob Scott, Partner, Scott & Scott, LLP. “Adopting asset management best practices can actually save companies money, as they avoid the purchase of extra licenses, reduce service costs, and streamline the procurement and disposal processes. Further, in today’s regulatory climate, a lack of proper hardware and software asset controls can put a company’s brand and shareholder value at risk.”

About Scott & Scott, LLP
Scott & Scott (www.scottandscottllp.com) is a leading law and technology services firm dedicated to helping senior executives assess and reduce the legal, financial, and regulatory risks associated with IT infrastructure. Scott & Scott’s legal and technology professionals provide software audit defense and software compliance solutions, all protected by attorney-client and work-product privileges. Software license compliance is an inter-departmental issue, impacting legal, finance, IT, and HR. Scott & Scott’s team wins the confidence of executives across the enterprise enabling a collaborative approach to achieving and managing compliance. The firm is managed by Rob Scott, who is a pioneer in the software license compliance field and regularly conducts seminars entitled, “Successfully Defending Software Audits” and “Software Asset Management & The Law.”

For additional information, please contact:
Ellen Edelman
908.322.8998
ellen@e2-pr.com