Dealing with the Business Software Alliance?

Kagetsuki writes: "We've just gotten a letter from an attorney representing the Business Software Alliance stating someone (we're certain it's a disgruntled former employee) submitted information we are using illegally copied software. The thing is we're not using illegally copied software, all commercial software we are using we have licenses for. Still, according to articles on the BSA that's irrelevant and they'll end up suing us anyway. So we now need a lawyer to deal with their claims and we don't have the money — this will surely be the end of the company I've sunk all my savings and 3 years of my life into. My question is has anybody dealt with the Business Software Alliance before? What action should I take? Is there any sort of recourse we can take to try and recover financially, or at least cover our legal fees?

As a side note Adobe is a member of the BSA. As Flash and AIR are some of our primary release platforms all the software we own happens to be from Adobe. We've also been a very pro-Adobe shop and have gone out of our way to defend our choices in using Adobe platforms (AS3 is great, check out the free Flex compiler!). Please, if any Adobe employees read this: do something, anything to get the BSA off of us!"

Liquidate

[russotto]

Sell all your assets and distribute them to the shareholders. When the BSA comes around they can find themselves an empty office.

BSA

[JWSmythe]

Remember this. Do not, under any circumstances, allow them into your offices, or run any software on their behalf. From what I've read, they will occasionally show up to an office to conduct a search. They may hire off-duty law enforcement. You are under absolutely no obligation to allow them into your premises without a search warrant.

They mass mail those warnings out to every business in an area. It's frequently when a new law firm hooks up with them. They're all in it