Company Liability for the Use of Unlicensed CAD and Design Software

 What are the legal consequences for companies of using unlicensed CAD and design software? Examine in detail the risks of copyright infringement, triple damages claims, compensation, penalties, employee and IT supplier liability, and the litigation process.

CAD and design software differ from ordinary office programs. In fields such as architecture, engineering, interior design, industrial design, mechanical design, infrastructure planning, visualization, and production preparation, these programs are often the work itself. Therefore, the use of unlicensed CAD software or design programs cannot be considered merely a technical error by the IT department. In Turkish law, computer programs are protected under Law No. 5846 on Intellectual and Artistic Works; the law defines the moral and financial rights of authors and regulates legal and criminal remedies in case of unauthorized use. The definitions section of the law explicitly defines computer programs, and Article 2 states that computer programs are protected as works.

The risk is even greater in the field of CAD and design because there are often two separate layers of protection. The first is the software itself. The second is certain projects, plans, sketches, architectural and design outputs produced by the software. Article 2 of the Copyright Law includes not only computer programs but also technical and scientific plans, projects, sketches, maps, and architectural, urban planning, industrial, environmental and stage design projects among the protected works. Therefore, the use of unlicensed CAD and design software can, in some cases, create a more intense area of ​​dispute regarding both software copyright and the protection of the outputs.

Unlicensed use shouldn't only bring to mind cracked installations. Opening a single-user license to numerous designers, using a trial version in commercial projects, continuing access to the program after the expiration of a limited-time license, distributing the same license key to branches or affiliates, exceeding the limits of server or network access specified in the contract, or circumventing protection mechanisms can also be considered under this heading. The General Directorate of Copyrights of the Ministry of Culture and Tourism clearly states that civil or criminal proceedings may be initiated in cases of copyright infringement; actions such as unauthorized processing, reproduction, distribution, public dissemination, and possession and storage of illegal copies for commercial purposes may result in sanctions.

Why is CAD and design software a particularly high-risk area?

The legal risk associated with CAD and design software isn't simply due to their high cost. These programs are often essential tools for a company's commercial production. In an architectural firm, drawing and modeling; in a machine manufacturer, technical project preparation; in an interior design company, presentation and application drawings; and in an engineering office, detailing and coordination are all often carried out using these programs. The lack of a license for such software can lead not only to copyright infringement risks but also directly impact the workflow. When the rights holder requests the cessation of use, the dispute transcends monetary concerns and affects the company's daily operations. The fact that the Turkish Copyright Law (FSEK) regulates measures for the cessation, prevention, and precautionary injunctions of infringement further confirms this.

License violations in CAD software can be more technically visible. This is because such software often operates on user-based licenses, network licenses, concurrent user licenses, dongles, cloud accounts, or subscription models. Technical records can track which device was activated when, how many users connected to the system, how many times the license key was used, and even, in some cases, which version is active. Therefore, the "it won't be noticed anyway" approach is particularly dangerous with CAD software. When a dispute arises, evidence can often be gathered directly from the company's own systems. Article 76 of the Turkish Copyright Law also establishes a strong evidentiary regime based on the submission of documents and lists.

How does legal protection work?

According to the Copyright Law, authorship of a work generally belongs to the person who created it. According to the General Directorate of Copyright, copyright inherently arises with the creator of the work; there is no mandatory additional process required to acquire rights. Voluntary registration does not create protection; it is merely a declaration-based mechanism that facilitates the identification of the author. The same statement indicates that in computer programs and databases, the author is the person or persons who wrote the source code, while in some cases, the company may be the rights holder who can exercise financial rights within the framework of a contract. Therefore, the argument that "software is not protected if it is not registered" is also not valid for CAD software.

For companies, the critical point is the difference between actually using the software and having the legal right to use it. Accessing an installation file, device copy, or subscription information does not always mean a valid license relationship exists. Practices such as "multiple users with one license," "team use of a former employee's account," or "opening a company license for a freelance designer," which are frequently encountered, especially in design offices, cannot be considered legitimate without examining the scope of the contract. The financial rights regime and the written permission requirement of the Copyright Law mandate that usage remain within the limits defined by the contract.

The relationship between licensing infringement and copyright infringement

Many companies consider licensing issues to be merely contractual problems. However, in CAD and design software, a breach of license agreement often also constitutes copyright infringement. This is because software use is technically intertwined with the acts of reproduction and storage. Since computer programs are considered works under the Copyright Law, unauthorized processing, reproduction, distribution, or public transmission of the program results in a financial rights infringement. The General Directorate of Copyrights also explicitly lists unauthorized processing, reproduction, distribution, and public transmission as examples of infringement.

Therefore, installing a single-user licensed CAD program on ten different devices in the office, using a trial version on client projects, or extending the network license beyond the locations stipulated in the contract may not only constitute a "breach of contract." The rights holder may characterize these actions as unauthorized reproduction and use and assert their rights based on the Copyright Law. This characterization is even stronger, especially in cases where cracks, keygens, or tools that bypass license verification have been used.

Contractual liability of companies

In cases of breach of a software license agreement, not only the Turkish Copyright Law but also the Turkish Code of Obligations comes into play. According to Article 112 of the Turkish Code of Obligations, if the obligation is not performed at all or properly, the debtor is obligated to compensate the creditor for the damages unless they prove their innocence. Similarly, Article 113 allows for the remedy of the breach in cases of obligations to perform or not to perform, the performance of the obligation at the debtor's expense if necessary, and the claim for damages. If the software license agreement specifies the number of users, license duration, location, server type, number of projects, or sub-user structure, exceeding these limits may also give rise to additional contractual liability.

The practical consequence of this contractual liability is that the rights holder is not obliged to rely solely on copyright law. Depending on the specific case, they can assert claims arising from the Copyright Law as well as damages resulting from breach of contract. Since maintenance contracts, cloud access terms, multi-user provisions, and remote work permissions in CAD software often contain technical details, infringement may not be limited to the number of copies. This is the main risk that companies often overlook.

Will the company be held responsible for the actions of an employee or an external IT firm?

Yes, in most cases this is possible. According to Article 116 of the Turkish Code of Obligations, even if the debtor has entrusted the performance of the debt or the exercise of a right arising from a debt relationship to auxiliary persons, they are still liable for the damages caused to the other party by these auxiliary persons while carrying out the work. Therefore, the defense of "the CAD program was installed by the IT company we hired for external support" or "the employee installed the crack on their own" does not always absolve the company. The auxiliary person's actions may still be subject to repercussions from a contractual relationship perspective.

The situation is similar with regard to the Copyright Law. According to Article 66, a person whose moral and financial rights have been violated can sue for the cessation of the violation; if the violation was committed by the representatives or employees of the business during their service, a lawsuit can also be filed against the business owner, and the condition of fault is not required for this lawsuit. This provision is particularly important in architecture and design offices. While discussions about who installed the program, who purchased it, or how much the manager knows about it are important in internal relations, the company often becomes the direct party to the rights holder.

Why is demanding three times the price one of the most serious risks?

Article 68 of the Turkish Copyright Law (FSEK) represents one of the most serious private law risks associated with the unlicensed use of CAD and design software. According to the law, the rights holder may demand from anyone who processes, reproduces, distributes, performs, or publicly transmits the work or program without written permission, up to three times the amount they would have demanded if a contract had been made, or the current market value. Furthermore, the law may also consider options such as destruction, surrender, or other related measures for unauthorized copies. This regulation is a clearly deterrent mechanism that prevents the infringement from being resolved solely through the payment of a reduced license fee.

In CAD and design software, this fee is often high. This is because annual subscriptions, network licenses, and enterprise user packages for such programs represent significant commercial value. A company working with twelve users cannot operate on a single license fee; the hypothetical contract calculation is based on actual usage. Especially in large-scale projects using architecture, engineering, and modeling software, charging three times the standard fee can have very serious financial consequences for the company.

Compensation and profit transfer risk

A claim for triple compensation doesn't always come in isolation. According to Article 70 of the Turkish Copyright Law, a person whose moral rights have been violated may claim moral damages; a person whose financial rights have been violated may claim material damages under the provisions of tort law if there is fault. The same article also stipulates that the profit obtained through the infringement may be claimed; however, in this case, the amount claimed will be reduced according to Article 68. Therefore, a company using unlicensed CAD software may face not only the theoretical license fee but also the commercial benefit it obtained through the infringement.

This point is particularly important in the CAD and design world, because unlicensed software is often used in revenue-generating projects. An architectural firm, engineering office, or product design company may have earned commercial profit from projects created using unlicensed software. The rights holder can assert this not only on the grounds of "you used my program without permission," but also on the grounds of "you conducted business and gained economic benefit through this use." In such cases, the dispute over monetary compensation can grow even larger depending on the project's volume and commercial benefit.

Suspension of use and precautionary measures

Companies often focus solely on financial risk; however, operational risk is sometimes far more significant. Article 77 of the Turkish Copyright Law stipulates that a court may issue a precautionary measure to prevent substantial harm, imminent danger, or fait accompli. The court may order the performance or prohibition of a project; decide on the opening or closure of a business premises; or seize duplicated copies and means of reproduction. This poses an extremely serious threat if CAD software is the company's primary operational tool.

Project production in an architectural office, drawing and modeling in an engineering firm, and presentation and application drawings in an interior design company can all come to a standstill without CAD software. Therefore, temporary injunctions in litigation sometimes create more pressure than fines. The company has to consider not only what it will pay at the end of the trial, but also how it will continue its business while the case is ongoing. This aspect distinguishes unlicensed CAD and design software files from classic debt disputes.

When does the risk of punishment arise?

Article 71 of the Copyright Law criminalizes certain acts that infringe on the moral, financial, or related rights of protected works. According to the official text, anyone who, without the written permission of the rights holder, processes, reproduces, modifies, distributes, publicly transmits, publishes, or commercially purchases, imports, or exports works that have been illegally processed or reproduced, or who possesses or stores them for purposes other than personal use, is subject to imprisonment for one to five years or a judicial fine. Since CAD and design software are used in commercial projects within companies, this penalty becomes more apparent in the context of corporate use.

Article 72 of the Turkish Copyright Law regulates preparatory actions aimed at rendering protective software ineffective. The official text stipulates a prison sentence of six months to two years for anyone who produces, sells, or possesses, for purposes other than personal use, programs or technical equipment designed to disable additional programs created to prevent the unlawful reproduction of a computer program. Therefore, using cracked CAD software can carry a higher risk of severe penalties than exceeding the number of licenses, because the licensing mechanism is deliberately circumvented.

Digital evidence and company computers

In cases like these, one of the most critical stages is digital evidence. According to Article 134 of the Code of Criminal Procedure, if there are strong grounds for suspicion based on concrete evidence and if it is not possible to obtain evidence by other means, computers, computer programs, and files can be searched; copies of records can be made; and text can be transcribed. Temporary seizure of devices is also possible if the password cannot be decrypted, confidential information cannot be accessed, or the process takes a long time. Furthermore, a backup of system data is made, and a copy is given to the relevant party.

This regime is crucial in CAD and design software. License verification records, activation traces, user logs, project folders, network license manager records, and server configurations can all be part of the investigation. A company deleting the program later doesn't necessarily erase past traces. Therefore, when suspicion of unlicensed CAD use arises, the first step is not to destroy evidence, but to meticulously document the situation.

Burden of proof and documentation requirements

According to Article 76 of the Copyright Law, in legal cases within the scope of this Law, the court may request the user to submit the necessary permission and authorization documents or a list of the works used, if there is sufficient evidence strongly supporting the plaintiff's claim. Failure to submit these documents constitutes a presumption of unlawful use. This article is perhaps one of the most practical provisions for corporate firms, because in many cases, not only the technical examination but also the documentation process determines the outcome of the case.

Many companies struggle with the argument, "We actually had a license, but we can't find the document." However, with expensive tools like CAD and design software, the defense is severely weakened if license agreements, invoices, subscription records, user lists, and device mappings are not properly maintained. The court wants to see a claim of licensed use supported by verifiable documents, not just a statement. Therefore, good documentation is not just an administrative habit; it is a direct litigation strategy.

What should companies do in practice?

First, user-device-license mapping must be performed for all CAD and design software. A clear record must be kept of which software is installed on how many devices, who is using it, which license model is in place, when the subscription expires, and which offices have network access. Second, installations and activations performed by external IT companies must be audited. Third, accounts of departing employees should be closed, shared licenses should be stopped, and trial/training versions should not be allowed to be used in commercial projects. These measures are the most fundamental antidote to the risks mentioned above under the Turkish Copyright Law and the Turkish Code of Obligations.

If a violation is suspected, instead of hastily deleting the programs, an internal audit should be conducted first. The company should clarify which programs it uses and to what extent, what documents it possesses, and whether the risk is solely due to a license breach or cracked usage. Only then can a legal strategy be developed. In some cases, license completion and settlement may be more economically viable; in others, the rights holder's claim may be technically incorrect or exaggerated. However, a sound decision can only be made after a complete picture is seen.

Conclusion

Company liability for the use of unlicensed CAD and design software cannot be reduced solely to the question of "who installed the program." In Turkish law, computer programs are protected as works; some project and design outputs may also be protected; unlicensed use can have both contractual and copyright-based consequences under the Turkish Copyright Law and the Turkish Code of Obligations. Triple compensation, monetary damages, transfer of profits, cessation of use, preliminary injunctions, criminal investigation, and digital evidence examination can all be included in the same case. This risk is particularly amplified when CAD software is the company's primary production tool.

Therefore, the safest approach for companies is not to develop a defense after a lawsuit is filed, but to establish license compliance from the outset. Undocumented, unregulated CAD usage, driven by the "everyone else is doing it anyway" mentality, may seem like a short-term saving, but it creates a much more expensive legal situation in the long run. For companies operating in the architecture, engineering, and design sectors in particular, software license management is no longer a technical matter, but a direct issue of corporate legal compliance.