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Microsoft launches “Consumer Action Day” to combat global software piracy

Announcement posted by Microsoft Security and Online Safety 03 Dec 2009

Reports from victims of counterfeit software fraud have doubled in the past two years

Sydney, Australia – 3 December, 2009 – Microsoft today announced “Consumer Action Day,” Microsoft’s second annual worldwide initiative designed to protect consumers from fraud and increase awareness of the risks associated with pirated software. Microsoft subsidiaries in more than 70 countries around the world are participating in the event by launching local and international education initiatives and enforcement actions to combat piracy.

Locally, the company announced it had filed legal proceedings against several software resellers in Australia and New Zealand who were allegedly found to be selling counterfeit software through online auction sites (see below for more detail).

Vanessa Hutley, Director, Intellectual Property, Microsoft Australia, said consumers were becoming increasingly active in the fight against software piracy and that the majority of legal proceedings announced globally today originated from tip-offs provided by consumers.

“Every year, thousands of people turn to Microsoft with reports of how they’ve been harmed by software piracy,” she said.

In the past two years, the number of complaints submitted to Microsoft globally has doubled to more than 150,000. While this figure demonstrates that consumers are increasingly being targeted by counterfeiters, it also indicates that they are also becoming active in helping industry and law enforcement find and track down counterfeiters.

“Piracy also affects the bottom line of thousands of businesses across Australia. It is extremely difficult for honest businesses who offer genuine product and software support to compete with pirated software,” said Ms Hutley. “We believe that collaboration is the most effective way to tackle this issue and we urge businesses, government and communities to work together to safeguard both ourselves as individuals, and the economy at large.”

Ordinary Australians fall victim to software pirates

In many instances, victims of software piracy believe they are purchasing genuine software only to find they have been supplied with a counterfeit product.  Many are unable to obtain a refund from the dealer, and need to re-purchase the product.  J. Royle of Western Australia said that he purchased what he thought was genuine Microsoft Office software from online auction site, eBay. “While I was cautious and did everything I could think of to authenticate the purchase – I reviewed the seller’s rating, studied the description and photos of the product to see that it was fully wrapped, I still ended up with a pirated copy. There is no guarantee that you will get what you’ve paid for when you buy on eBay or other online auction sites. I will only be buying from reputable online stores from now on.”

R. Gibson from NSW also unwittingly purchased counterfeit product from a global online auction site and resold it to others. “I found myself in a situation where I risked my own reputation as well as potentially put others in danger of damaging their computers and personal information. These pirates are sophisticated - they mirror serial numbers, holograms making it nearly impossible to verify what you’re buying. My advice would be to shop locally to avoid this kind of fraudulent experience.”

To address the increasing sophistication of software counterfeiters, Microsoft recommends that consumers visit http://www.howtotell.com, which will help them to identify counterfeit software and provide guidance on what they should look out for when purchasing software.  Microsoft encourages anyone who receives suspicious software to submit reports to the company’s anti-piracy site at: http://www.microsoft.com/australia/genuine/Piracy  or to email aupiracy@microsoft.com

According to the Business Software Alliance (BSA), over a quarter of all PC software used in Australia is pirated.  The BSA also noted that the impact of piracy on the Australian software industry is an estimated AU$834 million. 

High-quality online counterfeit cases

On November 24, Microsoft Australia filed proceedings in the Federal Magistrates Court for copyright infringement against two individuals trading online.  A third case was filed in New Zealand against a New Zealand resident trading online in Australia.  A fourth case has been settled out of court. The matters are a result of Microsoft’s online enforcement initiative, launched last year, which is aimed at reducing the growing trend of high-quality counterfeit products being sold directly to unsuspecting consumers online.

Matters currently subject to litigation*:

         Christopher Richards, trading on eBay and Oztion under the alias “cjrichards”: Copyright infringement claim for allegedly selling high quality counterfeit copies of Microsoft Office 2007, Microsoft Windows Vista Ultimate, Microsoft Windows Vista Business and Microsoft Windows XP Professional.

         Robert Harper, trading as eBay alias “Li_miss_fatty”: Copyright infringement claim by Microsoft for allegedly selling high quality counterfeit copies of Microsoft Vista Ultimate and Microsoft Office Professional 2007.

Settled matters:

         In the Hamilton District Court in New Zealand, Angus Ha Tran, trading as Australian eBay alias “aintboeingiantfly”: Copyright infringement and misleading the public through the sale of counterfeit Microsoft Office Professional Edition 2003.  Mr Tran has admitted Microsoft’s claim and Microsoft is in the process of having judgment entered for damages and an injunction.  Mr Tran has also given undertakings to respect Microsoft’s copyright in the future and to pay compensation.

         Renae Gloria Brown, trading as eBay alias “*Nintendo” selling copies of counterfeit Microsoft Office Professional 2007:  Ms Brown settled this matter with Microsoft out of court and gave undertakings to respect Microsoft’s Copyright in the future and agreed to pay damages and refund any money to her customers who came forward.

An interactive map detailing specific legal actions and education efforts being announced around the world for Consumer Action Day can be found at http://www.howtotell.com

*Note: these claims are currently subject to litigation and these claims are not yet proved.

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For further information please contact:

Alex Dembiany

Howorth

02 8281 3801

alex@howorth.com.au