Many midsized-to-large organizations are facing multiple software audits each year. Because auditors require raw data, which emanates from the technology department of the audit target, both the technical team and the legal team often believe that the matter is not a legal issue. But corporate counsel should be aware that significant negative financial consequences can result if the company provides information to the publishers or auditors without laying the proper groundwork for limiting the exposure associated with an involuntary audit.

Software audits are increasing. Software publishers interested in generating additional revenue often develop comprehensive software audit programs designed to review their customers’ compliance with software licenses, according to “Software Compliance Without Tears,” a survey published by Ernst & Young.