Microsoft Sues Alleged Software Pirates

As part of its fight against software piracy, Microsoft has filed lawsuits against eight resellers for allegedly buying and selling fake and used Certificate of Authenticity labels, the company says.

The lawsuits, which allege copyright and trademark infringement, follow a 12-month investigation by Microsoft, the Redmond, Washington-based software maker says in a statement. As part of the investigation, Microsoft bought Certificate of Authenticity labels and products bearing the labels, the company says.

Microsoft uses Certificate of Authenticity labels to identify its products as genuine. Each rectangular-shaped label is unique and belongs with the software product it was created to accompany and authenticate. For example, with the Windows operating system a label is affixed to the PC if the software is preloaded or to the top of the box on packaged software. A Certificate of Authenticity includes a product key code and is designed to prevent counterfeiting.

Some resellers are abusing the labels to sell pirated software as genuine, according to Microsoft. In its investigation, the company found that most misused Certificate of Authenticity labels were authentic but did not belong with the products with which they were sold. Resellers separated labels from PCs after they had been sold and re-used them on systems loaded with pirated copies of Windows, according to Microsoft. Also, resellers tried to sell the labels separate from the software to make more money, Microsoft says.

Company Crackdown

The action against abuse of Certificate of Authenticity labels is part of Microsoft's crackdown on software piracy, which the company acknowledges cuts into its earnings. Nearly 36 percent of all software worldwide is pirated, according to the Business Software Alliance, a software industry group.

Worldwide, 96 percent of Microsoft software is sold by partners, Microsoft says. The action against the resellers who allegedly abused the authenticity labels and competed unfairly is also meant to protect those Microsoft resellers that follow the rules, Microsoft says.

Microsoft sued the resellers that it charges with copyright and trademark infringement only when they continued their alleged abuse after being contacted by Microsoft, the company says.

Microsoft says it sued: Monarch Technology, of San Clemente, California; Kenneth Xu, of Union City, California; Era, of Lake Zurich, Illinois; Micro Info Tech (USA), of Edison, New Jersey; Affordable Computer Warehouse, of Clinton, New York; Warp Systems/Computers, of Raleigh, North Carolina; Master Computer, of State College, Pennsylvania; and Software Provisions, of Vancouver, Washington.

The crackdown on Certificate of Authenticity abuse will continue, Microsoft says.