Saturday, February 13, 2010

Legal Issues in IT Departments

IT departments are susceptible to many legal issues. One is the legal ramification of possessing and utilizing pirated software. This is a problem for IT departments whether the stolen software is used for company purposes or for personal use on company-owned equipment. The IT department could get sued if the licensing company finds the software. There is also the risk that pirated software could contain viruses. This presents the possibility that otherwise secure data could be leaked to outside parties. Client and proprietary company data would be compromised. Clients could sue the company for not protecting their information. When proprietary data is leaked, the company is not protecting its shareholders and their interests as well as employees and their hard work. The simplest way to avoid these legal issues is to never download or utilize pirated software. Even though there is a higher cost, it is much more beneficial for companies to appropriately pay for and obtain their software.

IT departments can also face legal issues related to developing code. Legal trouble may result if code is taken from the Internet or other sources where it may be stolen. I’m not referring to code forums or help sites, but rather where entire sections of code may be available and the source/author of it is unknown or not acknowledged. This can be avoided by creating and enforcing rules where using such code is prohibited. These rules should be very specific as to what type of code written by others can be used (possibly code forums or help sites) so there is no question as to what is allowed or not.

If my company’s data was to be hacked, a lot of customers’ personal information would be compromised. Customer name, address, telephone number, credit information, and services provided could be made available. There would be a chance of customers having their identities stolen and their credit being destroyed. Proprietary information about company processes, technology, and future growth could also be hacked. Companies in the same industry would gain a competitive advantage by stealing my company’s processes and technologies and making them their own. They would have knowledge of where my company plans to go in the future and could achieve that success ahead of them.

Intellectual property is important because it protects the company, their employees, and all they have worked so hard to achieve. It allows employees to freely apply their skills and knowledge knowing that what they create and accomplish will be protected. They will receive the proper credit for their work. Intellectual property can be protected through the use of patents, trademarks, industrial design, and copyrights. The fact that such protection has been established on an employee’s work should be made readily available.

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