microsoft is not a good example cause they make tons of money of everything else.

But for niche engineering software, they might pursue cause every small addition counts.

Just destroy the suspected PC and claim ignorance.

So let's say the legal firm is legit. Case like this usually how to settle? How much they will ask for and what happens if I ignore them?

niche engineering software only knows if the software manages to communicate with server (something crackers would take care off), most of the time when you get a letter like that its because you torrented something, opened it and it was fake, basically something they use to try and get rid of pirates even though the software/video is fake.

A lot of niche software companies do not bother trying to fight the pirates, when people cannot afford to buy your software its not going to help trying to go after them, so if its a company from the US, its something they would already know but any company that knows you use their software to make money but not pay for it will obviously go after you, but this rarely happens and usually caught when audited.

So just audit your own company to show that such claim is not true. If you did find the software, just claim that the install was not authorised and removed (you can prove this if your company doesnt use said CAD to make products, by showing what you use for your products).

Most of the time these letters are scams/fakes, basically legit company that release fake stuff to make people who want to pirate download it, its easy and cheap to have thousands of seeds for it and torrents let you track who your seeds and peers too so when you try and search for their product, the fake pops up in a favourable way.

The reason i say this is because only 1 PC was said to use it when it seems his company has many PCs, so this seems to me like the case of an unauthorised install or fake for tracking. This is one reason for tight control over your network and PCs and the only way if this is a legit claim is to have a proper audit that shows otherwise (including that you never touch their product when you make yours) and that such a thing was unauthorised and to thank them of exposing a vulnerability in your network.

Thanks for the insight. But in this case, the one Pc that they pin point did have the software installed no torrenting of the software ever happened. One post here did say the software might contain backdoor. The software was cracked version downloaded off internet. The cracked method involved replacement of "host_id " and replacement of a program file etc.
The lawyer letter claimed that we are using that software and no record from the USA software company that we had ever purchased it.

Someone's already mentioned it yesterday, get legal advice, not LYN advice. A one-hour consultation with a lawyer in Malaysia at most a few hundred RM and is defendable in court. LYN advice is not admissible in court

You lucky didn't kena raid. When I was much younger (late 90's), I used to work for Business Software Alliance (BSA). Based on whistle blower, we raid offices.

Armed with a team of Penguat Kuasa (gomen officers), lawyers, tech (me and some other computer guys) and a court warrant.

We removed all the staffs from the office, check every PC for software. Then ask the company to produce the license. e.g. If got 20 MS Windows and 15 MS Office, they need to produce the said amount of licenses. Failure to produce the licenses, each offence is fined RM20K.

One of the office I raided got over 50 PCs. Fully installed with Windows, Office, Adobe suite (it is a publishing house).

Lawyers sit down with the boss to settle. That day cannot settle. We bring lorry and confiscate all the PC as evidence, pending court case.

After that, the lawyers bring us to hotel for buffet. Give us RM300 for a day's job.

We have bought all software licences beside this one, microsoft and autodesk.
The 3D CAD software was price around 20k and we do not use it for our actual work. Just occasionally when we want to make new product one of our drafter create a 3d model for own viewing purpose.
If the software price is rm20k, the fines (if got caught) is also max 20k, what would one do?

I suggest one option to contact them and ask to provide proof of their claim and what are they proposing for settlement.

This is neither an admission of guilt or anything but will at least provide you with more information.

However, i agree with the others. Niche software developers do pursue cases, even Autodesk. And depending on the software, there are usually trackers to show sufficient evidence of usage. So the best option would be to settle and offer to purchase the software license.

Just my 2 sen.

but how did they know your company name/company address to send you a letter ?
are you using fixed IP ?
still think some kind of scam.

this is why game engines prefer to go by % of your profit. The problem is that they dont define which profit.

20k is far too pricey for any software, if you need to create 3D models, there are plenty of decent ones, some free for non commercial use. IF you arent using it for commercial you could get by with a non commercial one or educational one but you would also need to proof your use fits with license.

This post has been edited by System Error Message: Apr 10 2019, 02:50 PM

Yes. We use fixed ip lease line. The letter also came naming all names of our company owners. They sure had done some homework already.

sounds like you wont be able to avoid this one as you have been using their software without paying. Your only hope is that the malaysian justice system is unfair and that you shouldnt be expecting to distribute your products in the US. The only choice for you right now are 2
1) switch to a different software (seriously do your homework, i've seen free 3D modeling software before long ago that are decent)
2) Settle and continue to use their software.

Dont forget to see a lawyer but these are usually your only 2 options, how could you have been so dumb as to not research the various softwares available out there for you to use, that are just as good or better that are free or much cheaper? Getting caught like this will effect your trustworthiness as a business even if you manage to get off freely.

I get it that this is a crappy 3rd world country with barely any money but that means we have to be even more vigilant to avoid making dumb decisions. When i went into business, i had a common sense for legal, i know all the nooks and what people can and will do, even what people will try to do in being unfair. I see a lot of local business making horrible decisions from HR and employee management all the way to products and policy. because the mindset here is how much can you profit rather than what you can offer while improving all the numbers around you.

A lot of people pirate software, but when it traces back to a business, everyones going to rush after you.

Had that PC been traced to a residential internet and seems to be registered to personal rather than business, you would not have gotten that letter, only caveat is that that PC cannot be on a business premise.

On the contrary, companies like autocad and other proprietary software do engage local companies in order to make some money back from the illegal usage of software. But most of the time, how the company trace back illegal software is by internal workers reporting to receive the reward posted by these companies. Some rewards paying up to 20% of total fine.

interesting, but as the OP stated, he knowingly used the software and they traced his IP and did a whois which came back with their business details (much easier than internal people reporting and such). Since multiple times the software contacted home base and they got the same reading, clearly the software was being used. This limits the OP's option and even with legal help may not get out of this, but the result of it is highly dependent on the malaysian justice system and they can be unfair by deciding irregardless to let the local business off, but the software provider will also have legal for their side and the US court can ban the local company from operating or selling any products in the US and can apply it to any business owned by the same people.

I for one sometimes pirate, sometimes pay, and anything for business cannot be pirated as businesses are required to audit and other various things as well, plus if you're earning money with someone elses hard work, you should pay them too. Putting that into account i wouldnt be using a 20k priced software if i was not going to be utilising its expensive features and making many more than the price of the software. Theres nothing wrong either with working out a form of payment with the provider if you are making money but havent yet reached your expected amount and cannot pay all straight away, i mean the provider is likely going to listen to that too if it means you're going to be a subscribed member paying a yearly license.

so on the personal level i pirate, but thats because the money i save i put into business which pays for it instead. If on the personal level you dont own things and dont have money they wont do anything even if you own a business because the business is a separate entity legally but if your business does get sued (personal piracy dont apply for this) then the consequences are far worse than a single person losing their house. The important mantra to remember is that if you use someones work to gain money, pay them otherwise it makes you look like a scammer (scammers do not pay others for their work and take money from their customers without offering them anything).

So as i said, in 1 option if you can prove you arent using their software commercially to earn money and am trying it as a proof of concept, im sure they'll be interested to listen but it may not always work. They were caught red handed. Some companies care if you use their products and dont pay even if you dont profit from it while some dont and would prefer to profit of you if you profit instead (going with the long term thinking of if you fail because you had to pay them and cant continue, they get less potential business).

The reason why on the personal level they wouldnt care if you pirate a 20k software (as long as you dont distribute it ofcourse) is that you could be learning how to use it for someone who is paying 20k for it or multiple copies of it.

So the OP was caught red handed by repeated consistent IP traces rather than an internal report, because if someone inside reported they'd also need to provide solid proof otherwise all the legal is left with is a bluff which they do try to go for so sometimes calling their bluff is something but in this case the IP and PC trace is very solid because windows does also allow other software to capture some details of your windows registration (basically they can tell if the owner is the same guy via the license or someone else) so this info could be sent too. in the US its a legal playground so getting other information that shows non compliance and audit is also something they profit from too. I dont know what autoCAD software costs 20k but if i was a company and needed autoCAD i either would drop the business (too pricey and cant offer anything decent to both employees and customers), or if there is a better alternative for autoCAD i would just use that instead.

regarding your windows license, usually you could capture a hash of it and compare with microsoft if legit or not, but the actual license data is harder to copy by another software or if could cant be used as its already registered, so its not illegal for other software to copy your microsoft registration details like the license key as you would already have used it (so if someone else tried to use it it wouldnt work).

this smell like a scam

lol, the penalty might b cheaper than the PC

Can I know what is the conclusion. Is this a scam or what TS finally decision