IA Law Firm Bosnia Investigates the Consequences of Using Unlicensed Software—and How to Protect Your Company. Director in the Dock – What If an Employee Uses Pirated Software? In the digital era, nearly every business process relies on software, making the legality of your programs more important than ever—not only from a civil standpoint, but even criminally. Although many assume that an author’s copyright infringement merely triggers a financial penalty, Bosnia and Herzegovina’s law provides for far more serious consequences.
Common Misconception: “It Wasn’t My Fault”
A dangerous myth persists in boardrooms: if an employee on their own initiative installs and uses unlicensed software, only that individual can be held liable. In reality, criminal liability most often falls squarely on the company’s legal representative—the director.
Legal Framework: Directors Cannot Claim Ignorance
Under Article 242 of the Criminal Code of Bosnia and Herzegovina, anyone who uses copyrighted material without authorization—including software—faces up to five years’ imprisonment; the minimum sentence is six months. Although the statute appears targeted at the direct infringer, prosecutors typically open proceedings against the director of the company. Why? Because it is the director’s duty to ensure lawful business practices, including licensed software use and the protection of all other intellectual property rights. If infringement occurs within the firm, the director must prove that:
- A clear company policy on legal software use was in place.
- Regular internal audits and staff training were conducted.
- The specific employee acted entirely on their own, contrary to company rules.
Absent such evidence, criminal charges against the director become very real.
Case Study: Software Raids in Gračanica
In 2021, officers from the State Investigation and Protection Agency (SIPA), acting on orders from the Prosecutor’s Office of Bosnia and Herzegovina, searched two companies in Gračanica suspected of using unlicensed software. Proceedings remain ongoing—and are focused on each firm’s director.
Another recent case involved a company director prosecuted for copying and distributing textbooks without permission. The court found that, even though an employee performed the copying, the director bore responsibility for failing to establish and enforce lawful business practices. You can read more about this case here.
European Lessons: Fines of Up to €1 000 000
Across Europe—Germany, France, Italy—companies caught using pirated software often land in court and in the headlines. In one German furniture manufacturer’s case, a court ordered over €1 000 000 in damages after its designers used pirated 3D‑modeling software. French courts have even imposed prison terms on directors who tolerated or ignored illegal software in their firms. In the U.K., businesses relying on unlicensed programs can be blacklisted by major partners, suffering severe reputational and commercial harm.
Rising Trend in Bosnia and Herzegovina
Until recently, software‐copyright infringements in our region often flew under the radar. Now, rights holders—both large software companies and independent developers—are increasingly hiring local lawyers to pursue civil and criminal actions against violators. Firms in architecture, construction, design, engineering, finance, and other specialized sectors cannot afford to turn a blind eye.
How to Protect Your Company:
- Conduct regular software audits.
- Purchase and archive all license agreements.
- Train employees on the risks of unlicensed software.
- Define responsibilities clearly in internal policies and procedures.
- Engage legal counsel to draft a formal Software Use Policy.
Legal compliance around software use is no longer a purely technical issue—it’s both a legal and managerial imperative. Directors who recognize and address these risks early protect not only their companies but also their own personal liability.
For more information on IA Law Firm Bosnia’s intellectual property services, visit: https://ia-lawfirm.com/en/intellectual-property-law/
