The Software & Information Industry Association has developed a standard formula for assessing fines as part of its settlement process. It is important to note that the SIIA is not a governmental entity and has no independent authority to levy an enforceable fine. Software & Information Industry Association fines are therefore merely offered in settlement to avoid litigation and, like all pre-litigation settlement offers, are negotiable with the help of experienced counsel.

Dated Proof of Purchase Required

The SIIA's methodology for calculating fines starts by treating as unlicensed all software products for which there is a lack of adequate documentation, including dated proofs of purchase. All proofs of purchase must be dated prior to the Software & Information Industry Association's initial letter to be considered valid evidence. Because companies may not always have access to the requisite dated proofs of purchase, the SIIA's proposed fines are often based, in part, on software titles that companies legally own and properly acquired.

The Arbitrary 3x Multiplier

After disallowing credit for valid software without dated proofs of purchase, the Software & Information Industry Association then applies an arbitrary multiple of three times the full retail price for each software title.