Software has grown more complex as applications take on more functions and integrations, and so have the rules around it. Software compliance starts with knowing which areas carry legal and security risk and keeping up with changes in each. This article covers the main areas of the software industry that need compliance attention.
Why does a software license agreement matter?
The software license agreement is one of the most important documents in the industry, especially for developers. As the owner, you set the terms and conditions under which others may use your software.
A strong license agreement protects you from disputes and losses that could cost far more than the software earned. It also lets you license the software instead of selling it, so you keep ownership and can set restrictions on use, including copyright terms.
How does copyright protect software?
Copyright plays a major role because software can be copied, hacked or reused for malicious purposes. Clear copyright and licensing terms take some routine work, but they help you answer vague or baseless claims that a customer might make for personal gain or through improper means.
Why do updates and patches count as compliance?
Keeping software patched and current is another area that needs close review after launch. New technologies keep arriving with better functions, so developers should track them and compare them against software built on older methods.
Up-to-date software also helps you keep pace with competitors whose products run on newer platforms. Customers find current software easier to use and more reliable. Unpatched vulnerabilities, on the other hand, can turn profits into losses, so IT managers should make sure their organizations update regularly.
How should data shared with third parties be handled?
Electronic Data Interchange (EDI) is another major compliance area. Many data breaches happen when data moves to or from third-party sources. Vendor management needs a close look at every data transfer through a vendor, because each one can put the privacy and integrity of your data at risk.
Securing data and protecting privacy should be a priority in every software and IT firm. Complying with privacy laws remains a challenge for established companies and startups alike.
21 CFR Part 11 for electronic records
Software used in FDA-regulated work has an extra layer. 21 CFR Part 11 is the FDA rule for electronic records and electronic signatures that FDA regulations require, such as records kept by drug, medical device and food companies. It sets controls so these records can be trusted as the digital equivalent of paper documents and handwritten signatures. Developers who build systems for these customers need to support those controls.
What compliance duties apply to employees?
Employees are another focus of compliance in IT. Running an IT firm is a big responsibility, and developers who handle data that is unfamiliar to them or to the firm can put the company at risk.
Take the steps needed to stay current with employment laws and data-handling obligations. This helps protect both the company and its employees from costly lawsuits.
Key takeaways
- A clear license agreement and copyright terms protect your ownership.
- Regular updates and patches reduce security and business risk.
- Data shared with vendors needs strict privacy controls.
- Systems handling FDA-required records must meet 21 CFR Part 11.
- Employee practices and training are part of software compliance too.
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