Legal risks of using pirated software in franchise networks

In Brazil, in order to use software, it is necessary to obtain a license and/or a tax document that proves the acquisition or licensing of a copy. Software piracy is not just configured as the unauthorized reproduction of a program, but also the misuse of the acquired license. In this way, even operating in a highly competitive market, Brazilian entrepreneurs should not use computer programs without acquiring the corresponding authorizations. When we bring this reality to the franchise segment, the zeal with software assets must be taken even more into account , as damage to the image of a franchisee can be extended to other companies that are part of the network. In addition, the responsibility for the crime of software piracy may also fall on the franchisor, who has a duty to supervise its commercial partners. , damage to the company's image, and even indictment for violation of criminal law. In addition to causing damage to equipment, this attitude makes the company liable to pay compensation, in an amount equivalent to three thousand times the price of each irregular software license. It is important to emphasize that the company's administrators, if the perpetrator of the crime is not proven, may respond criminally, with a deprivation of liberty ranging from six months to four years.

Depending on the number of irregular licenses, only the indemnity action would be enough to bankrupt micro and small companies. But entrepreneurs are also not aware of the negative space that this attitude can generate in the media, caused by distrust among customers in relation to the products and services offered and the erosion of the company's image.

Incidentally, this company must be the most interested so that its network does not occupy negative space in the press, with news that comes to denigrate its brand, in addition to the consequent losses for the entire franchised network. The franchisor has a legal duty to supervise its own establishments, it is up to it to ensure the equal competition of its network, inhibiting the attitude of franchisees that try to gain a competitive advantage over their peers, through the use of software without having acquired the necessary licenses for use.

So that these problems do not occur, the ideal thing would be for franchise networks to guarantee the management of software assets within licensed companies, by including a clause in their contracts that formalizes the commitment to respect copyright legislation.

Another item that should be included is to ensure that the franchisor is authorized to carry out periodic audits at the franchisees' facilities. If there is evidence of violations, in addition to the warnings and the application of the penalties provided for in the contract for contractual violation, the establishment would be notified to acquire the missing licenses and/or remove the illegally used copies. The audit could also determine whether the licensee is respecting the clauses of the franchise agreement, which deal with the protection of brands and business and industry secrets belonging to the franchisor.

This does not guarantee that an employee cannot install an irregular computer program on his workstation, but it demonstrates that the franchise network took precautions and warned its units about the risks of operating with this illegal asset. Furthermore, it prevented possible convictions and transferred responsibility for the criminal violation to the legal representative of the establishment.

Among the franchisees, work can begin with internal measures so that their employees contribute to the protection of IT assets. A licensed environment can be guaranteed with internal IT governance policies, with frequent monitoring of technical teams or hired specialists. To prevent any type of audit or inspection, it is important that businessmen catalog their software use licenses, just as they do with any other asset acquired by the company.

This business zeal includes conducting periodic audits on the computers used to certify compliance between purchased licenses and used copies. It is also encouraged that companies collect from their employees the signature of amendments to the employment contract or to the service provision contract, that the violation of copyright will result in contractual termination for just cause.

Through these preventive attitudes, entrepreneurs can avoid legal exposure and damage to their brand.