Microsoft Protects Consumers from Global Online Marketplace Fraud 52 lawsuits filed and 22 cases referred to local law enforcement; India one of the 22 countries where these actions have been initiated New Delhi, India, 11th December, 2007 - As part of its continuing effort to protect consumers and support legitimate online commerce, Microsoft Corporation today announced the filing of 52 lawsuits and the referral of 22 cases to local law enforcement in 22 countries against resellers who allegedly sold counterfeit Microsoft software on various online marketplaces. India is one of the countries where these lawsuits and referrals have been undertaken. In addition, Microsoft announced the release of a new educational guide to help consumers spot and avoid counterfeit software offered on online marketplaces. These announcements are part of Microsoft's continuing effort to protect consumers from the dangers of counterfeit software and build on Microsoft's first global enforcement action in 2006 to combat online marketplace piracy. Although it can contain harmful viruses or tools that compromise users' privacy, counterfeit software is designed to closely resemble the original article and fool consumers. As a result, consumers seeking to purchase original software online are often tricked by those who misuse online marketplaces. "Every day, software pirates around the world put countless consumers at risk by selling defective counterfeit software through Internet marketplaces," said Mr. David Finn, Associate General Counsel for Worldwide Anti-Piracy and Anti-Counterfeiting at Microsoft. "As part of our ongoing effort to combat software piracy, Microsoft is committed to taking the legal action necessary to protect consumers around the world from the dangers of counterfeit software, and we encourage consumers to look to the legitimate channel - both online and offline - when seeking original Microsoft software." The 52 lawsuits filed today were filed in Belgium (1), Canada (1), France (3), Germany (12), Hong Kong (1), India (1), Ireland (1), Italy (2), Netherlands (7), Turkey (1), South Africa (1), the United Kingdom (6) and the United States (15). Twenty-two criminal cases were referred to law enforcement in Argentina (1), Belgium (1), China (1), Dominican Republic (2), France (3), India (1), Japan (2), Korea (2), Mexico (1), Panama (1), Poland (3), Taiwan (3) and Turkey (1). Globally, PC software piracy robs the software industry of an estimated $40 billion (U.S.) per year. Lost industry revenue is just the beginning; the fourth annual BSA and IDC global software piracy study (May 2007) estimated the worldwide PC software piracy rate at 35 percent in 2006. The study estimates that India lost USD 1,250 million in 2006 to software piracy - up from USD367 million in 2003. However, the effects of reduction in software piracy are extremely positive and the study states that a 10 point drop in Indian piracy levels by 2009 would lead to the creation of over one lakh jobs, besides increasing India's GDP by USD 5.9 billion. 15 of the 52 lawsuits filed involved software traced to the largest-ever commercial counterfeit syndicate, which was broken up earlier this year by Chinese authorities, the FBI and Microsoft. Through its investigations, Microsoft found that the counterfeit software produced by the Chinese syndicate was distributed in some markets through domestic online sellers. As in the takedown of the Chinese syndicate, Microsoft customers played a role in helping to identify the counterfeiters in these cases by filing piracy reports with Microsoft after anti-piracy technology in Windows Genuine Advantage (WGA) indicated that their software was fake. "The criminal syndicate broken up this past summer by Chinese law enforcement and the FBI was linked to a significant amount of illegitimate Internet activity," Finn said. "We took note of that fact and followed up globally, since we have a responsibility to help combat cyber-pirates who operate without borders and attempt to deceive unsuspecting software consumers around the world." According to an October 2006 IDC white paper sponsored by Microsoft,* counterfeit software can contain spyware, malware or other dangerous code. It may fail to operate properly and present real risks to consumers and businesses through potential security breaches and the resulting loss, damage, or misuse of their important business and personal information. Savvy shoppers searching online marketplaces for the best deal can be at risk by unknowingly buying counterfeit copies that may contain spyware, malware or other dangerous code. Therefore, Microsoft is working with the popular global online marketplace, eBay, to educate consumers and support honest resellers regarding counterfeit software and to that end has produced the "Microsoft Buying Guide," which points consumers to best practices and resources for purchasing software on online marketplaces. This guide appears in eBay's Reviews and Guides section ( http://reviews.ebay.com/Before-You-Buy-Understand-the-Dangers-of-Counter feit_W0QQugidZ10000000004755497), and is part of a wealth of resources that Microsoft encourages consumers to consult to make safe software purchasing decisions. It also appears on Microsoft's How To Tell Web site at http://www.howtotell.com. To unsubscribe send a message to [EMAIL PROTECTED] with the subject unsubscribe.
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