Microsoft Files 26 U.S. Piracy Lawsuits

http://redorbit.com/news/technology/576207/microsoft_files_26_us_piracy_laws
uits/index.html

By ALLISON LINN

SEATTLE - Microsoft Corp. has filed 26 lawsuits accusing U.S. companies of
selling pirated software, the latest move in its ramped-up efforts to boost
sales by cracking down on illegal copies.

The world's largest software maker filed the lawsuits Friday in federal
courts in Georgia, Illinois, Ohio, Colorado, South Carolina, New York and
New Jersey. The lawsuits accuse the companies of selling illegal copies of
its Windows operating system and Office business software.

The lawsuits are the latest in Microsoft's increasingly aggressive steps to
curb piracy of its two flagship products - and cash cows - Windows and
Office. The company has begun widespread distribution of a program, called
Windows Genuine Advantage, that checks whether users are running legitimate
copies of Windows. And it scored a coup earlier this year when China agreed
to crack down on piracy.

Redmond-based Microsoft still rakes in billions of dollars in profits from
Windows, but the market is growing more saturated. That's left the company
more eager to curb illegal copies, in the hopes those users will buy
legitimate versions.

"We're worried about it because it does seriously affect our business, in
the sense of people not paying for the research and development but reaping
the benefits," said Mary Jo Schrade, a Microsoft senior attorney.

Schrade said the intent of the lawsuits isn't necessarily to recoup costs
but instead to raise awareness and prevent further piracy.

Microsoft has long raised concerns about countries such as China, Russia and
India, where piracy is thought to be rampant, but it has more recently
increased its monitoring in the United States as well. Schrade said that
although the piracy rate is thought to be lower here than elsewhere, the
sheer number of computers running Windows still makes it a big company
concern.

Forrester Research analyst Ted Schadler said the company also may feel that
it must crack down in the U.S. to boost its international efforts. He said
the company may be thinking, "If we don't mind our store at home, how can we
ask the Indian government or the Chinese government to mind their stores?"

The 26 cases filed Friday were aimed at companies that sell Microsoft
products to businesses and consumers.

In each of the cases, Schrade said Microsoft first sent a warning letter to
companies it believed were selling pirated software. If the company
continued the practice, Schrade said Microsoft filed a lawsuit.

But Chu Son, a co-partner in Denver-based Microcomp Solutions Inc., said he
never received a warning letter before a lawsuit was filed accusing him of
selling pirated Office copies.

Son, who settled 2001 charges over Windows sales, said his company mainly
repairs computers and rarely sells Office. He believes the allegedly pirated
copy came from a batch of 10 or 15 licenses he purchased on eBay, which he
believed were legitimate.

"I'm more angry than anything else that these guys, just because they're big
and stuff, you know, they're just throwing their muscle around," he said.

Justin Harrison, whose company Sales International LLC was among those sued,
also was indicted by a federal grand jury. The Oxford, Ga. resident is
accused of selling certificates of authenticity that, the prosecutor says,
were meant to vouch for software that was actually illegitimate.

Harrison's lawyer, Steve Sadow, said he hadn't seen the Microsoft lawsuit.
But, responding to the federal charges, he said that his client was selling
legitimate copies of Microsoft software obtained from legitimate sources.

---

On the Net:

http://www.microsoft.com/genuine

Gregory S. Williams
[EMAIL PROTECTED]



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