Microsoft sues counterfeiters in the US

By Steve Malone

Posted on 12 Apr 2005 at 10:29

Microsoft is suing eight system builders and resellers in the US for selling counterfeit versions of its software.

The alleged pirates are the latest to be trapped via Microsoft's test purchase programme. In this scheme, undercover Microsoft agents buy systems which are suspected to be running illegal copies of Microsoft software. Once the systems are received they are tested for their authenticity. If it turns out that the software is illegal, the offending parties are sent a cease-and-desist letter by Microsoft's lawyers with some helpful information about how they might go about getting legal copies of the code. Those foolish enough to persist get the summons.

Today's suits have been filed against alleged offenders in California, Florida, Texas, New Jersey, Alabama, Maryland and Rhode Island. The suits follow similar legal swoops against eight other dealers filed in November of last year.

Alongside the counterfeit code, the dealers are also accused of distributing standalone or separated Certificate of Authenticity (COA) labels which contain the product activation key. Microsoft has already cracked down on the practice of using stolen or pirated COA labels. It has also tried to prevent the leaks of COA labels by disabling those from OEMs.

Although pirated software is nowadays considered to be mainly a problem in the far east and other developing nations, the suits show that Microsoft recognises a problem in its own backyard. However, while pirated Windows in the markets of the far east damage no-one except Microsoft itself as there is an embarrassingly small 'legitimate' market in some countries, the problem is different in a market like the US where some smaller resellers which depend on a level playing field are being undercut by the pirates. And they are making themselves heard in Redmond.

'Our partners are coming to us and asking for our help,' said Bonnie MacNaughton, a senior attorney at Microsoft. 'They are being undercut and forced out of business by having to compete with dishonest PC manufacturers and resellers who continue to sell illegitimate software. That isn't fair to our partners or to the customers who depend on them.'