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Microsoft
Files Software Piracy Complaints Against Five New York Businesses
Company Pledges to Protect State's Consumers and
Honest Distributors REDMOND, Wash. - Aug. 18, 1999 -Microsoft
Corp. today announced that it has filed software piracy lawsuits in
New York as part of the company's continued commitment to protect
legitimate distributors and customers from the negative effects of
software piracy. The lawsuits, filed against five businesses in the
New York metropolitan area, allege the illegal distribution of
counterfeit software, unlicensed software on computers sold or
counterfeit software licenses. One of the lawsuits involves alleged
violations of a previous settlement agreement with Microsoft.
"The distribution of illegal software not only
takes hundreds of thousands of dollars away from honest software
resellers, but also makes it difficult for legitimate software
resellers to compete," said Robert Morse, president of Morse
Micro Solutions Inc., a hardware and software reseller. "We
support Microsoft's legal actions against unscrupulous companies and
their attempt to level the playing field for law-abiding
businesses."
Most of the businesses named in the complaints were
investigated as a result of tips to the Microsoft anti-piracy hot
line, which typically are phoned in from honest resellers or from
consumers who receive suspicious products. According to allegations in
the complaints, each of the defendants continued to distribute
unauthorized Microsoft® software even after receiving a
written request from Microsoft to stop unlawful activities.
Three of the lawsuits allege that the defendants
distributed counterfeit copies of Microsoft software to investigators.
Two of the cases allege the distribution of computers to investigators
after hard disk loading, the practice of loading unauthorized copies
of software onto the hard drives of computers to be sold. One of the
cases also alleges the distribution of counterfeit software licenses
to a customer. The lawsuit against Data Wheel Computer Inc. of
Flushing, N.Y., further alleges that Data Wheel Computer Inc. violated
a previous settlement agreement with Microsoft whereby it agreed not
to infringe upon Microsoft copyrights and trademarks. The complaints
are as follows:
Filed in the United States District Court for the
Eastern District of New York:
Filed in the United States District Court for the
Southern District of New York:
The software industry lost more than $11 billion in
revenue worldwide to software piracy in 1998, according to a recent
Business Software Alliance (BSA) study. The United States' piracy rate
of 25 percent cost its software industry more than $2.9 billion in
revenue during the same year.
"The software industry in the New York
metropolitan area has become a substantial economic force and greatly
balances our economy, which has been heavily reliant on the financial
sector for so many years," said Bruce E. Bernstein, president of
the New York Software Industry Association. "Unchecked, software
piracy can significantly diminish the growth of this emerging
industry."
"New York's higher-than-average piracy rate has
an extremely negative effect on the state's economy," said Nick
Psyhogeos, corporate attorney at Microsoft. "During 1997, New
York lost more than $860 million in combined wages, tax revenues and
retail sales to piracy. Our core goals are to lessen the impact that
software piracy has on both state and national economies and to
protect consumers from the risks and harm of pirated software."
Microsoft has announced that it will donate an
estimated $25 million over the next five years - half of its software
piracy recoveries during that time period - to nonprofit organizations
worldwide. These funds will be donated to a variety of groups focused
on providing access to technology for disadvantaged communities, as
well as to select academic institutions to promote innovation,
entrepreneurship and creativity in the fields of science and
technology.
Microsoft cautions that consumers who acquire
pirated software could find, in addition to the increased potential
for viruses, that such software is missing key elements such as user
manuals, product identifications, Certificates of Authenticity, end
user license agreements and even software code. Customers with pirated
software are also ineligible for technical support or upgrades.
Microsoft continually researches the viability of new anti-piracy
technologies, such as the holograms on the hub of Windows 98 and
Office 2000 CD-ROMs, to maintain the integrity of the distribution
channel and reduce the costs of piracy.
Consumers and resellers are encouraged to become
familiar with the warning signs that can help them identify
counterfeit or illegal software:
Customers or resellers with questions about the
legitimacy of Microsoft software should contact the Microsoft
anti-piracy hot line, toll free, at (800) RU-LEGIT (785-3448) or send
e-mail to piracy@microsoft.com. In addition, a list of authorized
distributors and details regarding the OEM System Builder program are
available at http://www.microsoft.com/oem/.
Consumers can obtain more information about software piracy by calling
the Business Software Alliance anti-piracy hot line at (888) NO-PIRACY
(667-4722) or sending e-mail to software@bsa.org. |
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