Four UK companies have settled out of court in cases that alleged their use of illegal or unlicensed software, according to the Business Software Alliance (BSA).

London-based Blitz Corporation, Genetics Limited of Ludlow, Sheffield-based MTL Group and Modular UK, based in East Yorkshire were all accused by the BSA enforcement team of flouting software laws.

The BSA says that, as well as flouting the law, companies that use unlicensed software face potential IT failures and the corruption of vital data.

Among the illegal software being used were Adobe, Microsoft and Quark products worth "thousands of pounds."

"The BSA takes a firm line against the disregard of software licensing regulations," said Sarah Coombes, senior director of legal affairs for the BSA.

"Businesses of all sizes can find managing their software assets challenging, but as software is often the most valuable business assets a company has, it must be managed appropriately."

The BSA has recently run campaigns in Glasgow and Manchester aimed at educating businesses on this issue.

Illegal software use remains a major problem among UK businesses. A recent study by IDC found that over a quarter (26 per cent) of business software in the UK and Ireland is illegal.