Autodesk Audit Blog

This guide will help you survive an Autodesk audit (software compliance issues). Autodesk has over 10 million users (ex. architects, engineers, designers and manufacturers). When the software is dowloaded the end user licensing agreement ("EULA") must be followed or copyright infringement risks.

1. Getting the Autodesk Audit "love letter"

   Being in business is never easy. Aside from trying to make money and deal with all the customer service issues that arise, you also have to be aware of your IT department and software licensing issues. For example, you have multiple employees (both internally and remote employees) installing software on their iPhones, Androids, laptops, iPads and other electronic devices. Each software install has a licensing agreement. As employer, under the doctrine of "respondeat superior" you are liable for all their actions that further the employer's business. But how do you keep track of all the end user licensing agreements ("EULA") and make sure you are complying with these complicated and confusing licensing agreements. It is a nightmare. When your company is growing or even worse, during a merger or acquisition, how do you make sure there are no software licensing snafus (which in the legal world we refer to either as a breach of contract) or worse, a copyright infringement. For most companies, it is a matter of time before they will be audited by one of the major companies that are auditing businesses for proof of software licensing compliance (some of the main companies are Microsoft, Adobe, Symantec, Autodesk, Oracle, SAP, IBM, VMware, and McAfee). When these companies think you are "over-installing" software a "love letter" may be issued either by these companies directly, or by the BSA, SIIA, or one of their intellectual property lawyers. These letters ask that you "voluntarily" audit your computers and company servers and show your dated proofs of purchase, serial numbers, and audit the number of installs. This can become very stressful, and your legal exposure meter could start running RED. This is when our law firm gets the call and this is where we can shine to help you avoid a federal lawsuit that could potentially bankrupt your company.
   
   If your company is OUTSIDE the United States and you received an audit demand email or letter, this is a good podcast for you to listen to. You need to make sure your company (and its officers and directors) is PROTECTED. https://www.blogtalkradio.com/attorneysteve/2019/08/29/did-you-get-an-email-from-autodesk-outside-the-united-states

2. Having proper proof of software licensing

   A voluntary self audit letter from companies like Microsoft or Autodesk can lead you to seek intellectual property counsel to assist you. One of the first questions we have is "do you pay for software." Some companies download software on the internet, or buy their software at garage sales or "going out of business sales." This can be extremely risky as you have to have proper serial numbers and usually proofs of purchases from valid software resellers to avoid a compliance nightmare. We can help you examine this issue. For example, if you don't have any proofs of purchase, the software company may accuse you of willful and intentional copyright infringement (which could lead to costly attorney fees if a lawsuit is filed). We can help you explore potential defenses such as "I paid for it but cannot find the proof of purchase or receipts." There is no law (and the EULA does not require) that you keep and maintain proofs of purchase. If you are missing a few receipts this may be a defense we can work with in a BSA software audit. Looking at the conduct of the informant is also another issue that needs to be examined in determining what defense you might have a in SIIA or other software compliance audit. For example, was the "informant" (the one seeking a software piracy reward) a disgruntled ex-employee who violated the low, downloaded pornography on company time, or guilty of engaging in other unscrupulous conduct? These things need to be explored when a software company is threatening to file a federal copyright lawsuit and put you out of business. These are issues a good software audit law firm will explore on your behalf.

3. What is Autodesk looking for in a Software audit?

   The main thing software companies such as Autodesk, Microsoft and Adobe are looking for when they audit you is "over-installation" which basically means you are violating the end user licensing agreement and installing or upgrading more than the license permits you to do. For many companies it is only a matter of time before they get audited. But suffice to say, the software company wants to know if you are paying for all installs of software on your computers and servers, or if you are engaged in software piracy. According to the BSA there is a large amount of unlicensed software, and their members such as Microsoft, Adobe and Autodesk will rely on their EULA to force you into a "voluntary" self audit. Of course, if you don't submit to the audit, according to them you may face a costly lawsuit. This borders Civil RICO in some cases, and the representative of the BSA, or SIIA or software company needs to be challenged on why they are demanding an exorbitant settlement amount where a client merely cannot locate its receipts, for example. At any rate, the EULA has to be examined to see what it says (realizing these terms can change from time to time) and given these licensing agreements are overloaded with vague, ambiguous, and confusing terms which each company and business is expected to comply with. Contact one of our software licensing lawyers to review your case by calling (877) 276-5084.

4. Potential defenses to copyright infringement

   When you are faced with allegations of copyright infringement or violations of the Digital Millennium Copyright Act ("DMCA") you need to assess your legal defenses and options. Some common defenses to copyright infringement allegations are 1. No willful or intentional copyright infringement, 2. Corporate officers and directors are not liable, 3. Copyright Misuse 4. First-sale doctrine 5. Fair use defense 6. Lost receipts. 7. One satisfaction rule. These are some of the main things that should be looked at. Ever where these defenses don't apply, you need a strong litigation law firm to negotiate a fair settlement on your behalf. Our law firm has a strong record of protecting business owners in this area. For a more detailed look at defenses see this blog post we did - https://www.linkedin.com/pulse/defenses-copyright-infringement-steve-vondran-esq-?trk=mp-reader-card

5. What is a possible settlement following a Autodesk Audit?

   If Autodesk finds that you have unlicensed sofware, without proper serial numbers, and over-installs on computers, laptops, and network servers, then are likely going to want full MSRP for each piece of software and a "statutory multiplier" times 3. They think you should pay the triple multiplier since this is the amount your business is avoiding having to pay since you are not forced to go to civil court if a lawsuit is reached, Our IP attorneys examine the facts and figures and settlement amounts being proposed, along with your potential defenses, and we decide what we believe a fair settlement amount is, We then work hard in the trenches to try to negotiate a fair settlement. So these negotiations can be very contentious, but just know that Vondran Legal knows the game and we got your back

6. What happens if a Copyright infringement lawsuit is filed?

   A copyright infringement lawsuit is filed in federal court. Federal courts have exclusive jurisdiction over these claims. In such a case, a Defendant can expect charges of intentional, malicious and willful infringement of copyright, and the plaintiff will seek actual damages, statutory damages, lost profits, destruction of the infringing software and other possible remedies depending upon the case facts. When a lawsuit is filed, your case becomes a public record (i.e. a potential social media disaster) and the goal is to get out of the case as quick as reasonably possible and with a confidential settlement (or win a dismissal of all claims so that your company can defend its reputation). This is very serious business and the heat is on when your company ends up in federal court. Our job is to keep you out of federal court, and the action winds up there, to prevail in the case, or minimize the damages award. For example, if the Plaintiff cannot prove intentional copyright infringement, they should not be able to seek attorney fees (not willful), and they should be more amendable to resolving the case through arbitration or on fair terms. If you have been served a cease and desist letter or copyright lawsuit contact us at the number below.

7. How did Autodesk learn about our copyright infringement of their software?

   This is another common question people ask. We wrote this blog to give you some of our best insights.
   
   https://www.linkedin.com/pulse/how-did-autodesk-find-out-our-software-piracy-steve-vondran-esq-?published=u