Reduce software and support costs by eliminating/ reallocating underutilized software licenses
	Enforces compliance with company security requirements and desktop standards
	Improving worker productivity using suitable technology
	Limit overheads by streamlining and/or automating IT processes

The software asset management software plays a leading role in managing the software in the computer network of an organization and is mainly useful to the corporate world.

Although many people use the computers on a daily basis they are not aware of the various software installed in their computer; more so about the versions, latest developments, network data etc. This is due to the fact that they either are engrossed in their job or do not have the requisite knowledge about the software. One cannot expect such persons to manage the software assets in their computer; hence they have to necessarily rely on the software asset management software. This software also protects the other software running in their computer. For people who earn their living using the computer with existing software the protection is helpful.

Whenever you purchase a thing from the market, you become the legal owner of that item and you have every right to do whatever you want with that item. This is not true when it comes to Intellectual Property items such as software. You do not own the software when you purchase it. Instead, you become a licensed user i.e. you purchase the right to use the software on a single computer. You are not legally entitled to put copies on other machines or pass that software along to colleagues. Software piracy is the illegal distribution and/or reproduction of software applications for business or personal use. Whether software piracy is deliberate or not, it is still illegal and punishable by law. Piracy can come in any of the following forms.

	Licensed user duplication for unlicensed users
	Illegal Internet distribution
	Illegal use of the application over a network
	Distributing specialized education versions to unauthorized markets

The companies also are affected by this piracy and they have to constantly keep on checking for pirated software which could have been installed by any of their employees. The piracy of the software is a very huge loss to the software company because they will lose customers who opt for pirated software. This will affect the company revenue leaving the company in the red. Any pirated version is not the original and some files will be missing which will give errors during usage.

As per BSA 2005 Global Software Piracy Study, in the year 2004, 35% of the software installed on personal computers worldwide was pirated and the loss due to this was $33 billion. On 1 January 2005 a new Copyright Act came into effect in USA and as per this act, it is a criminal offence to sell or distribute copyrighted software illegally. In the past, distributing copyrighted software without getting any financial benefit resulted in only a civil punishment. The new law details the following punishments to violators of this law.

	Fines up to $93,500 and /or up to five years imprisonment for individuals;
	Fines up to $467,500 and/or up to five years imprisonment for companies.

 

*The piracy has ruined the business of many companies around the world. The software asset management software helps to reduce the piracy around the world by keeping the software safe with the help of a password or some proof. Also some disgruntled employees may resort to supplement their income by resorting to software piracy.

Software piracy due to employees themselves can take place because they feel that they are not compensated well enough for the work they are doing. This can be avoided by giving proper compensation package to the employee so that he does not feel dissatisfied. The recruitment should be done in such a way that you recruit only honest employees. In addition to the use of software asset management software, management of the employees also plays a very important role in the functioning of the business.