The Director’s Dilemma: Personal Liability for Software Licence Non-Compliance

This isn’t just IT support—it’s executive risk management.

In Spain, software licence violations aren’t just a company problem—they’re a personal risk for business directors. Under the Intellectual Property Law (Ley de Propiedad Intelectual), company executives can be held personally liable for copyright infringement, facing fines, legal action, and reputational damage. Ignorance is not a defense. If your business uses unlicensed software, you—as a director—could pay the price.
 
Protect yourself and your leadership team at licences.
 

Why Directors Are Legally Accountable

Spanish law holds company representatives responsible for ensuring legal compliance. Article 138 of the Intellectual Property Law states that those who “authorize, enable, or fail to prevent” infringement may be held jointly liable. This includes:
  • Approving budgets that exclude proper software licensing
  • Overseeing IT departments that use unlicensed tools
  • Failing to implement compliance policies
  • Ignoring audit warnings or employee reports
 
Even if you didn’t personally install the software, your oversight role makes you accountable.
 

Real Consequences Beyond Corporate Fines

While companies face fines up to €600,000, directors may also encounter:
  • Personal financial penalties in severe cases
  • Legal proceedings that demand your time and reputation
  • Exclusion from public tenders due to compliance failures
  • Damage to professional credibility in your industry
 
A single audit can turn a routine business decision into a personal legal crisis.
 

Common Scenarios That Trigger Director Liability

  • Cost-cutting measures: Choosing “free” cracked software over legitimate licences
  • Remote work expansion: Allowing employees to use personal devices without proper licensing
  • IT outsourcing: Assuming third-party providers handle compliance (they often don’t)
  • Succession gaps: Failing to deactivate licences when staff leave, then reassigning them incorrectly
 
These decisions may seem operational—but they carry legal weight at the executive level.
 

How Refortek Shields Leadership from Risk

Refortek’s professional IT licensing services provide directors with peace of mind:
  • Compliance audits: Independent verification of your software estate
  • Policy development: Clear guidelines for procurement and usage
  • Documentation packages: Audit-ready proof of all licences, tied to your organization
  • Ongoing monitoring: Alerts before renewals lapse or usage exceeds limits
 
This isn’t just IT support—it’s executive risk management.
 

Final Thoughts

As a director, your duty of care extends to intellectual property compliance. Don’t let software licensing become a personal liability. With expert support, you fulfill your legal obligations and protect your professional future.

diannaosborne254

8 Blog mga post

Mga komento