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Regulatory News South Africa

Microsoft releases hounds on pirate resellers

Microsoft has launched a salvo of piracy lawsuits against computer resellers the corporation claims have sold PCs with pirated copies of Windows and Office pre-installed. Microsoft investigators say they gained several tip-offs from the company's anti-piracy phone hotline as well as its Genuine Advantage verification system.

Microsoft (Nasdaq: MSFT) has fired off a slew of federal lawsuits - 21, to be exact - against resellers in 14 states. In the suits, Microsoft claimed the resellers are engaging in the sale of pirated software. Some of the lawsuits include eight possible repeat offenders that may not have learned their lessons the first time around after settling previous lawsuits with Microsoft.

Microsoft said its legal actions are aimed at preventing consumers from getting duped when they buy a new or used PC. In the cases announced Tuesday, Microsoft claimed some of the resellers misled customers by repeatedly distributing unlicensed copies of Microsoft Windows XP and/or Microsoft Office pre-installed on the PCs they sold.

"These legal actions are about protecting Microsoft's customers from falling victim to some dealers who operate a business model of peddling pirated and counterfeit software," noted Sharon Cates, an attorney at Microsoft.

"The cases announced today are indicative of the need to ensure that dealers cease their illegal activity so that customers can be sure that they purchase genuine, fully licensed software," she added.

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