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Microsoft nabs software pirates

Johannesburg, 31 Jan 2012

Global software giant Microsoft says its lawyers have swooped on four rogue computer dealers in Pretoria, who were selling fake software to consumers.

The retailers were bust after the company's mystery shoppers found the shops were selling new PCs loaded with pirated Microsoft software, either at a full or discounted price.

Three of the resellers in question have signed formal civil settlement agreements with Microsoft and the company is involved in a legal process with the fourth retailer. Microsoft channel manager, Wesley Lewis, says the company may look at criminal or civil action in the fourth matter.

Microsoft would not provide details on the settlements, but Lewis says the dealers have not been prohibited from selling its products. The raids form part of an ongoing series of crackdowns on rogue resellers, he says.

The software company is investigating “dozens” of computer dealers suspected of selling fake or illegally licensed software, says Lewis.

Counting the cost

“It's entirely a lost sales equation. Look at it this way: If 60 rogue dealers - and there are more than that in Gauteng alone - sell just two computers each a day with illegal software on it, we could be looking at losses to the industry of more than R4 million per month,” says Lewis.

Pirated software costs the local economy about $513 million - or about R4.2 billion - each year through lost sales, ITWeb recently reported.

Lewis says pirated software also exposes end-users to risks, as fake software is vulnerable to computer viruses, malware and hackers.

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