Best Practices

Proven Best Practices for License Compliance Settlement

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Proven Best Practices for License Compliance Settlement

Keep the pressure on

Once you initiate communications with the non-compliant organization, escalate quickly and follow-up diligently to help ensure a speedier settlement.

Talk only with decision makers, such as the CFO

t’s most effective to deal directly with C-level and senior executives who understand the business risks involved in running software without a license.

Establish a deadline for the settlement

Escalating communications with the non-compliant organization and driving toward a fixed deadline provide a sense of urgency for reaching a settlement.

Document all conversations and save correspondence

Detailed notes of all discussions with individuals within the non-compliant organization come in handy during negotiations and are critical if you escalate to law enforcement or take legal action. Dramatically Increase Trial User Conversion: Understand how the trial version of your product is being used after it is downloaded.

Settle on the number of infringed seats—and no less

Non-compliant organizations will often try to negotiate down the number of licenses or features during settlement discussions; use infringement history and escalation steps to maximize revenue recovery.

Avoid offering discounts that undervalue your software

Consider the intent of the infringer before offering a discount. While the majority of infringers in mature markets are legally inclined victims of piracy, others have used your software and demonstrated a need for it, but intentionally pirated it or overused licenses. Insist that these non-compliant organizations pay the full list price.

Don’t get emotional—just stick to the facts

Infringers will seek to evade the discussion, so use your data to prove unlicensed software use; stay calm, present the evidence, and follow the process to reach a fair settlement without alienating the non-compliant organization.

Integrate with your CRM system for better compliance tracking

Identify unique accounts with piracy activity within your CRM or case management system; track piracy settlement revenue separately to measure compliance program results.

Create a license compliance section within your corporate web site

Include a copy of your EULA, outline licensing models, provide a “REPORT PIRACY” button, and describe how to identify software piracy or overuse.

Frequently Asked Questions (FAQs)

Best practices include escalating communications quickly, dealing directly with decision makers, setting settlement deadlines, and documenting all correspondence.

Initiate contact, escalate promptly, and communicate only with senior executives who understand the risks of non-compliance.

Deadlines create urgency and help drive faster resolutions with non-compliant organizations.

Keep detailed notes of all conversations and save every piece of correspondence for legal and negotiation purposes.

Settle on the actual number of infringed seats and use infringement history to support your case. Avoid negotiating down the number of licenses.

Avoid offering discounts that undervalue your software, especially if the infringement was intentional. Insist on full list price for intentional piracy.

Integrate compliance tracking into your CRM to identify accounts with piracy activity and measure settlement revenue separately.

Include your EULA, outline licensing models, provide a “REPORT PIRACY” button, and explain how to identify software piracy or overuse.

Stick to the facts, use data to prove unlicensed use, and remain calm to reach a fair settlement without alienating the organization.

Organizations face legal, financial, and reputational risks when using unlicensed software. Senior executives should understand these risks and act accordingly.

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