(Aug. 1, 2000) Microsoft Corp. today announced that it has launched the first wave of a new global campaign against Internet consumer fraud involving software products. Microsoft has taken legal action against more than 7,500 Internet Web and auction site postings allegedly offering counterfeit and other illegal copies of software. New technology and cooperation of law enforcement has helped Microsoft catch those who peddle counterfeit software. "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. In the first wave of the new campaign, Microsoft sought the prompt removal of allegedly counterfeit offerings from Internet sites and then took further action if cooperation was not forthcoming. With the help of law enforcement officials worldwide and often in coordination with the other members of the Business Software Alliance (BSA), the campaign has already led to 64 criminal raids and 17 civil lawsuits in 15 countries worldwide, including Australia, Brazil, Germany, Hong Kong, Israel, South Africa, Sweden, the United Kingdom and the United States. "While the recent Napster debate highlights the illegal downloading of content for free, we're also witnessing an upsurge in unauthorized Internet sites fraudulently offering 'special low prices,' collecting money, and then delivering fake CD-ROMs to unsuspecting consumers," said Robert Holleyman, president and CEO of BSA. "Fraudulent software sales over the Internet have prompted thousands of consumer complaints to Microsoft's anti-piracy hot lines around the world," confirmed Tim Cranton, corporate attorney for Microsoft. "In some cases, consumers never received any product at all, while in others they received a defective CD or a download infected with a virus that prevented proper installation of the software. 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." "Ultimately we're going to need a combination of new technology and new relationships 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." In the United States, where more than 3,000 Internet auctions were taken down in July, Microsoft announced six Internet anti-piracy lawsuits and two settlements today. One of the cases involves a New York company called Copy USA that used auctions sites to advertise Microsoft(R) software at "too good to be true" prices. Microsoft investigators received counterfeit copies of the Windows(R) 2000 operating system. Microsoft has filed a similar lawsuit against Buy It Cheap Network in Texas for allegedly selling counterfeit Microsoft Office via the Internet. For tips on how to shop safely for software online, Microsoft has a Anti-Piracy Web site at http://www.microsoft.com/piracy. If you question the legitimacy of Microsoft software you should contact the Microsoft anti-piracy hot line, toll free, at 800-RU-LEGIT (785-3448) or send e-mail to piracy@microsoft.com.
