With more than 2 million websites selling and distributing pirated software Microsoft has today launched the first wave of a new global campaign against Internet consumer fraud involving software products.
Employing new technology and working with industry partners and law enforcement agencies, Microsoft has taken legal action against over 1,300 Internet web sites offering counterfeit and other illegal copies of software. The illegal content resided on Internet servers located in 27 countries on six continents.
"The growth of counterfeit software on the Internet is a threat not only to those who create content, but to consumers who are being asked to pay good money for bad products," said Brad Smith, deputy general counsel, worldwide sales at Microsoft. "The goal of this new campaign is to help ensure that Internet commerce is characterised by genuine products and honesty rather than dodgy goods and theft."
Microsoft is using new technology to support the worldwide campaign, including an Internet monitoring tool that can search suspect sites on the Internet 24 hours a day, 7 days a week to identify illegal on-line offerings and those behind them. By automating some of the most time-consuming work relating to illegal offerings, Microsoft can identify and address thousands of illegal sites in a single day and work with Internet Service Providers and auction sites to remove illegal products from the Internet.
With the help of law enforcement officials worldwide and often in co-ordination with the Business Software Alliance (BSA), the campaign has already led to 64 criminal raids and 17 civil lawsuits in 15 countries worldwide including Peru, South Africa, United States, United Kingdom and Hong Kong. These efforts support local government`s efforts to promote the development of a secure digital infrastructure for e-commerce.
In EMEA, 743 auction site notices have been sent this calendar year for infringing material (see attachment). Over 43,000 auctions have been removed since Microsoft adopted a program targeting illegal auction sites. Further to this 2274, ISP takedown notices have been issued for websites and servers offering illegal downloads of Windows 2000. 91% of these notices have resulted in the successful removal of infringing materials.
"While the recent Napster debate has highlighted the illegal downloading of content for free, we`re also witnessing an upsurge in unauthorised Internet sites fraudulently offering `special low prices,` collecting money, and then delivering bogus CD-ROMs to unsuspecting consumers," said Robert Holleyman, president and CEO of BSA. "Unauthorised file sharing and the distribution of counterfeit products poses a serious threat to consumers and the global economy."
Microsoft`s new campaign comes as emerging technologies such as Gnutella, Freenet and others seek to make it easier to distribute pirated copies of movies, music and software on the Internet. "We`re committed to developing technology solutions that respond to technology problems," said Smith. "Ultimately we`re going to need a combination of new technology and new partnerships between the public and private sectors that protect the law-abiding interests of both creators and consumers. The protection of intellectual property rights on the Internet is essential to encourage creative individuals and companies to develop new products that will benefit consumers."
The majority of illegal Internet postings involved in today`s worldwide enforcement efforts were discovered by Microsoft investigative teams using the new Internet technology. Microsoft backs up the automated search tool with a growing number of on-line and traditional investigators who examine suspect sites, make test purchases, work with ISPs, and track down the pirates behind the illegal sites.
The following cases highlight successful efforts against Internet consumer fraud in EMEA:
London - A civil action has been brought today against Matthew Borum and Warez-Central for allegedly selling illegal copies of over a dozen different Microsoft products including Windows 2000, Windows 98, Office 2000 via his website.
Romanian CD-R Sales - An Internet pirate in Romania has been identified offering Windows 2000. The case has been referred to the Romanian police who will set up a sting to catch the pirate(s) involved
Germany - ebay Auction site. The BSA has launched an active Auction Site program that monitors and takes down illegal sites. In the days prior to the official launch of Windows 2000, over 132 auctions offering suspected counterfeit Windows 2000 software CD-ROMs were located on the German ebay site.
Netherlands - A pirate offering illegal copies of Windows 2000 CD-ROMs as well as videogames, business software, magazines and film via his website Funsoft was raided in the Netherlands in the small village of Horn.
Germany - In June, BSA raided a pirate who operated a mail order site offering serial numbers and hundreds of illegal copies of software products, including Windows 2000. After the raid, the pirate admitted selling illegal copies.
Croatia - Earlier this year Croatian police simultaneously raided 52 Internet software pirates.
South Africa - An ISP and dealer who advertised on the auction site,
www.bidorbuy.co.za
was raided by the Commercial Crime Unit and seized high quality counterfeit product. The site owner indicated that he purchased the counterfeits through a U.S. Internet site. Microsoft is in the process of formalising a code of conduct agreement with Bidorbuy, which has shown commendable cooperation on preventing commerce in illegal materials.
Israel - Following the voluntary take-down of dozens of illegal sites, the BSA and Israeli police joined together to raid a website home address that offered cheap products over the web. The site was run by a 20 year old male who was caught red-handed selling pirated Microsoft Windows 2000 over the Internet. The case is set for a preliminary hearing before a judge in Haifa Court.
"Fraudulent software sales over the Internet have prompted thousands of consumer complaints to Microsoft`s anti-piracy hotlines around the world," confirmed Jeffrey Steinhardt, corporate attorney for Microsoft. "In some cases consumers never received any product at all, while in others they received a defective CD that would not install the software properly. Microsoft`s new campaign should help eliminate some of the risk for consumers, but they must also become savvy Internet shoppers and learn to spot the warning signs of counterfeit and pirated software, such as deals that are too good to be true. Consumers should check Microsoft`s Ten Tips for Safe Internet Software Shopping."
Customers or resellers with questions about the legitimacy of Microsoft software should contact Microsoft SA at 0860 225567 or send e-mail to piracy@microsoft.com.
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