The trade group, the Software & Information Industry Association, informed George Kurtz, CEO of Foundstone, by letter in May that it intended to pursue copyright-infringement charges against Foundstone. It acted after a confidential source alleged that McClure and Gary Bahadur, Foundstone's chief information officer, routinely spread unlicensed software to the company's 125-member workforce; that Kurtz was aware of that practice; and that in early April the CEO ordered his staff to delete unlicensed software from their computers. "They're gambling with their reputation," says Keith Kupferschmid, head of the association's antipiracy unit, which investigated and found the allegations credible. "That's not a smart thing to do."