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ASPs dismiss software allegations

Concerns expressed by the Federation Against Software Theft about companies relying on application service providers to supply legitimate software has been dismissed by the industry as a "soapbox" stunt.

Antony Savvas, Network News, Network IT Week 01 Nov 2000
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Concerns expressed by the Federation Against Software Theft (Fast) about companies relying on application service providers (ASPs) to supply legitimate software has been dismissed by the industry as a "soapbox" stunt.

Following a survey conducted by Fast and KPMG on how firms were geared up towards checking that all the software they used was fully licensed, Fast chief executive Geoff Webster said he was concerned that companies could be walking into a trap when it came to relying on ASPs not to supply unlicensed software.

Webster warned that unlicensed ASPs who provide software posed a risk, and said that users should check contracts and licences with lawyers to ensure that they were not liable for any licensing irregularities.

He believes that there is a tendency for users to consider themselves in the clear about software infringement issues once they handed over management control for rented software to ASPs.

But his comments were attacked by the ASP Community, which has 300 user members and suppliers including Oracle and Microsoft.

Simon Moores, co-chairman of the Community, said: "The ASP industry at the moment is a bit like the ISP [internet service provider] industry was a few years ago. There are some small companies who may be more concerned about being taken over rather than growing, but most ASPs are currently still looking for their first customers. To give the impression that there is already a current problem is wrong."

Companies must exercise caution when choosing an ASP, warned Moores, and should make sure that they know who their suppliers are and what infrastructure they will use. But he added that users do not need to be overly concerned. "It seems Fast is using ASPs as a soapbox to get attention," he said.

The survey found that 56 per cent of respondents admitted that they would find it difficult to prove ownership of all the software used in their organisation.

First published in Network News

See also:

Everyone is talking about application service providers and how much money and staff resources they should be able to save customers. The new outsourcing model has yet to be taken up to any great extent, however. vnunet.comlooks at the phenomenon and tries to inject a note of reality into the hype.  30 Nov 2000
UK anti-piracy group the Federation Against Software Theft has warned companies to check 'rented' software supplied over the internet from unlicensed providers, or risk breaching copyright.  24 Oct 2000
A global anti-software piracy group has warned that it may take seven European web auction sites to court because they are being used by pirates to sell illegal software.  19 Oct 2000
Why buy software when you can rent it? In the first of a two-part feature we tell you all you need to know about application service providers.  17 Oct 2000
Microsoft will today launch a scheme aimed at alerting users to the pitfalls of buying counterfeit software.  09 Oct 2000

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