THOUSANDS of North-East organisations could be operating illegal software without even knowing it.

The warning comes from CPA Systems Limited, the Stockton provider of business IT solutions.

Two national surveys have recently confirmed CPA's own experience that easy access to illegal software on the Internet was proving too tempting for employees.

In many cases, those who downloaded software were unaware that they were putting their employers at risk of fines and a damaged public image.

CPA has responded to the problem by launching a software audit, through which it will identify any illegal software and help the organisation concerned avoid future problems by developing an effective Internet software policy.

The service is free and available to non-customers.

The two surveys - by the Business Software Alliance (BSA) and the Federation Against Software Theft (Fast) - both leave no doubt that many businesses are failing to meet software licensing requirements.

BSA, which represents the international software and Internet industries, found that nearly 40 per cent of businesses with up to 50 employees do not have a software policy.

Almost one third of respondents were unaware that software downloaded from the Internet could be illegal.

Fast, which is a members' organisation formed by the industry to counter software piracy, found that 83 per cent of respondents perceived that 40 per cent of UK software was pirated, yet more than 50 per cent found it difficult to prove their organisation was software compliant and 40 per cent had no software policy.

CPA Systems, which was formed in 1993, provides clients throughout the North-East with hardware and software systems, and a wide range of office equipment. It is one of only five Solution Centres for Sage software.