Microsoft Sues Over Resold School Software

Microsoft Corp. has filed nine lawsuits against companies for allegedly reselling software that was originally sold under discounted educational licenses for schools in Jordan.

The companies posed as academic resellers and made "millions of dollars" by transferring their licenses for Windows OS and Office software to Internet retailers in the U.S., according to Microsoft. The company offers steep discounts on its software used in schools.

The lawsuits were filed in federal courts in California, New York, New Jersey, Florida, Nevada and Montana. Microsoft also sent 50 cease-and-desist letters to warn other companies against the practice. The companies it sued were based in Jordan and elsewhere.

One retailer, eDirectSoftware.com, of Billings, Montana, has settled for US$1 million in cash and property, Microsoft said. The company's Web site now includes a link to a Microsoft Web site about how to identify genuine software.

Microsoft said the operations may have deprived schools from having access to software.

The software in question was marked "student media" and "not for resale," the company said.