Legal Question in Technology Law in Texas

Re: Internet liability

Copyright owners can and are catching employers who have illegal software on company computers. Employees can be personally liable, as well. The odds of getting caught are relatively remote due to the massive number of copyright infringers, but the proof if often straightforward and the damages can be significant. The proof requires the copyright owner to show possession of unauthorized software (generally that means unregistered, as that is how it is usually checked)and some culpability. The culpability comes from negligence in not checking routinely for illegal software and clearing it off the system or, worse yet--but not all that unusual, encouraging or participating in illegal copying of software.

This is a significant problem for software copyright owners and even more of a problem for musicians and labels, as the file sharing programs are sophisticated enough now to make policing an incredible nightmare with uncertain results. However, if you have a business of any significant size (sufficient to justify the expense of, for example, the Business Software Alliance, going after you) then this is a risk you should not ignore. You can expect that a certain number of employees with internet access will download Morpheus, Grokster or Kazaa and use it to get illegal copies of copyrighted software and music. This needs to be policed periodically. It is probably wise to search a business network for any of the file sharing programs and delete them and to warn employees there will be penalties if you catch them with, for example, Grokster on their hard drive.