Employees who are downloading and swapping the latest music and video files at work may be doing more harm than just wasting company time and making the network grind to a halt. Because songs, movies, and most computer games are copyrighted, such activity is illegal.

And when workers use employer-owned computers or network resources, they also create liability for their employer, according to the associations that represent the music and recording industries.

Just as the software industry has done for years, the entertainment industry has begun cracking down on individuals who download or share pirated music and files over the Internet – and, in some cases, the organizations who employ them.

Employers would be liable for copyright infringement if their employees were using facilities provided by their employer to download or share copyrighted music. It is similar to the liability created by someone who used a corporate vehicle and had an accident.

The doctrine of vicarious liability creates employer liability for their workers; i.e.; copyright infringement using company resources. This is the same doctrine whereby employers are held responsible for the sexual harassment committed by their supervisors.

It is essential to draft and communicate a policy to employees that this type of conduct is prohibited and can result in serious disciplinary action or termination.

• Set a clear policy against copyright theft.
• Audit corporate systems for the presence of unauthorized copyrighted material.