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  • ACE Team

Software as a Service = Risks & Penalties of Using Unlicensed Software

Updated: Nov 17, 2023


~A local company and its director have been fined a total of $38,000 for using an unlicensed software.~ Straits Times

Many companies may be tempted to use unlicensed software to save money or avoid compliance issues. However, this practice can expose them to serious risks, such as legal penalties, security breaches, and reputational damage.

Based on IPOS, companies can be penalized to a fine not exceeding $20,000; and/or Imprisonment up to two years.

Using unlicensed software can have severe consequences for companies, such as:

  1. Legal penalties: Companies that use unlicensed software can face lawsuits from software vendors or authorities, resulting in fines, damages, or even criminal charges. For example, in 2019, a UK company was fined £100,000 for using unlicensed Autodesk software.

  2. Security breaches: Unlicensed software may contain malware, viruses, or spyware that can compromise the security and privacy of the company's data and systems. Unlicensed software may also lack updates and patches that fix vulnerabilities and bugs, making it more susceptible to hacking and cyberattacks.

  3. Reputational damage: Using unlicensed software can harm the company's reputation and credibility among customers, partners, and regulators. It can also affect the company's ethical standards and corporate social responsibility.

  4. Operational failures: Unlicensed software may not be compatible with other applications or devices, causing errors, crashes, or performance issues. This can affect the company's productivity, efficiency, or customer satisfaction.

Therefore, companies should avoid using unlicensed software and adopt best practices for software asset management (SAM), such as:

  • Conducting regular audits and inventory of software assets

  • Ensuring compliance with software licensing agreements and terms of use

  • Educating employees on the risks and benefits of using licensed software

  • Purchasing software from reputable and authorized sources

  • Implementing policies and procedures to prevent and detect software piracy

Using unlicensed software is not worth the risk. Companies should invest in licensed software to protect their assets, reputation, and future.

At ACE Business, we are the authorized partners for major IT softwares and hardware.

Contact us for any purchase of your Software and Hardware, and rest assured that it would be fully authorized and genuine. Call Us at 6262 0402 or email to


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