The Software & Information Industry Association (successor to the Software Publishers Association) and the Business Software Alliance enforce copyrights in the software products of their members - which include such powerhouses as Microsoft, Corel and Adobe Systems. Acting on tips from disgruntled employees and consultants, the software police will typically demand that a targeted organization conduct a voluntary software audit and prove that each copy of its members' software products revealed in the audit has been rightfully obtained and used. As part of any settlement, the software police will require a targeted company to destroy any unauthorized copies and pay a fine.

Upon receiving a notice from the software police alleging infringement, a company should initiate a comprehensive software audit. The audit should identify all computers, installed software applications, proofs of purchase and license agreements. The audit results will enable the company to assess its level of non-compliance, if any, and develop a strategy for responding to the infringement allegations.

If a targeted company fails to cooperate, the software police may initiate a copyright infringement lawsuit. On several occasions, the software police have secured court orders allowing them to enter the targeted facilities and conduct their own audits. Significantly, many of these copyright infringement lawsuits have resulted in awards of sizeable statutory damages and attorney's fees.

To minimize liability risks, companies should adopt and enforce corporate policies on computer, Internet and software usage. Additionally, companies must effectively manage their software assets by centralizing software acquisition and implementation, documenting all purchases, understanding and managing license agreements, overseeing compliance, periodic auditing and registering software. In many cases, companies may substantially reduce their risk by negotiating favorable site licenses.