Microsoft Files Lawsuits

Microsoft Corp. today announced the filing of four lawsuits against companies in Virginia and California for alleged distribution of counterfeit and/or illicit software and software components.

Allegedly illegal or questionable actions of four companies were brought to Microsoft’s attention through consumer complaints to 1-800-RU-LEGIT (785-3448) and through Microsoft’s test purchase program - a company initiative designed to help monitor the legitimacy of software distributed around the country through random purchases of software and software components from resellers.

“We have an obligation to protect consumers and legitimate resellers,” said Mary Jo Schrade, senior attorney at Microsoft. “In filing these lawsuits, we hope to curb the amount of pirated and counterfeit software on the market and keep illegal software from finding its way into the hands of unknowing consumers and businesses.”

Microsoft relies on consumer input to help compile complaints and help curb counterfeit software on the market. This was especially true for the cases filed today. Many of the complaints came from consumers through Microsoft’s 1-800-RU-LEGIT phone line, a valuable tool the company uses to monitor abuses across an increasingly vast software sales landscape.

An Internet presence gives a company the ability to extend the reach of alleged illegal or questionable actions well beyond a local customer base.

Robert Russell, president of III Open Technologies in Virginia, said he is glad to see Microsoft file the suits. “Legitimate resellers of genuine Microsoft software take hard financial hits when competitors sell pirated and counterfeit software - illegal software - for a fraction of our cost.

On the other side of the country, from his office in Tustin, Calif., Bob Whiton echoes this sentiment. His company, Net Solutions Inc., a Microsoft Certified Partner, manages and maintains computer networks for small and medium-sized businesses.

The Anti-Counterfeiting Amendments Act, signed by President Bush in December 2004, strengthened the software industry’s ability to protect itself from those abusing certificate of authenticity (COA) labels - the “authentication” labels that are paired with legitimate software. Previously, legal action was taken against those selling or possessing counterfeit COA labels.

Microsoft’s Schrade said the companies named today were given the opportunity to comply with current laws, including the Anti-Counterfeiting Amendments Act.

“In these cases, we sent cease-and-desist letters to help them understand our concerns.”

Microsoft has established an aggressive and ongoing education campaign to communicate to its channel partners how it is engaging system builders and resellers who undercut them in the marketplace by selling counterfeit and illicit software and software components.

A COA label helps identify genuine Microsoft software. For authorized preinstalled Microsoft Windows operating systems, the COA label should be affixed to the PC chassis and should not be removed from the PC.