Users should have the opportunity to sell on software
assets that are no longer required following a merger or
acquisition, according to Nick Leake, an IT director at the
newly-merged ITV.
The call came as the Federation Against Software Theft warned
companies going through mergers and acquisitions to check their
software licence compliance, or risk facing civil or criminal
prosecution.
According to figures from The Economist, the number of mergers
and acquisitions is at its highest level since 2000, with £80bn
worth of global deals announced in January alone.
Leake, director of infrastructure and operations at ITV, which
was formed by the £4.5bn merger between Carlton and Granada, said
software licensing after a merger seems to be a one-way street in
favour of the suppliers.
"When you go into a merger, you often find that part of the
rationale is to achieve savings," he said. "This may result in
redundancies and reduces the number of software licences needed.
But it is not possible for an organisation to sell any of its spare
software assets - you have to buy more.
"What other corporate assets on the balance sheet cannot be sold
on?" he asked.
Leake added that there are many organisations, such as ITV
Digital, with millions of pounds of software licences, that become
insolvent.
"Their licences are written off as they cannot be transferred or
sold to a third party - or even to parent companies or
shareholders. It is a rip-off," he said.
John Lovelock, manager of legal affairs at Fast said that,
because of the pressure surrounding mergers and acquisitions, there
is not always enough time to check software compliance. Companies
need to treat their licences like any other asset, he said.
"This lack of information creates a host of liability issues and
is, therefore, a high-risk strategy for any organisation," he
said.