Microsoft: Audit, or else there's trouble

By John Dodge, eWEEK
Monday, June 25, 2001 11:34 AM
In its continuing jihad against software piracy, Microsoft's legal department has sent letters to corporate customers demanding they conduct internal audits of their software licenses and submit their findings within 30 days to the software giant.

The letter, using language no less intimidating than the Internal Revenue Service might use, also includes a form that spells out the audit process. Customers must report the number of installs, documented licenses, license upgrades and unlicensed software. Covered in the process are operating systems, Office suites, individual applications, BackOffice products and the Visio product line.

The audits are not only costing IT shops time and money (some well into five figures), but several customers contacted this week who received the letters without warning said they bordered on harassment.

"I don't want federal marshals to walk in here with a warrant," said a CIO at a Midwestern health care concern who asked not be named. The stern missive he received was dated May 16 and signed by Microsoft corporate paralegal Heather C. Logan. The CIO has already asked for a 30-day extension to comply with the letter, which in italic type reads: "Please complete and return the audit survey within 30 days."

The letter stops short of threatening repercussions if a recipient doesn't comply, but Microsoft Associate Counsel Nancy Anderson said hauling customers into court would only be "a last resort." Anderson added that Microsoft has targeted 5,000 midsize businesses as part of its longstanding anti-piracy campaign.

"It's medium-size corporations who we believe have a larger compliance problem as a result of growing rapidly," Anderson said, soft-pedaling any notion that Microsoft is ready to use a big stick.


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