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Microsoft Files 10 Lawsuits to Help Protect Its Partners, Consumers


WEBWIRE

Legal efforts broadened to fight alleged program fraud.

REDMOND, Wash. — Dec. 15, 2005 — You may want to hold on to your wallet the next time the price of a software title seems too good to be true. It could be an illegal sale.

Microsoft Corp. today announced that it has filed 10 lawsuits against companies for allegedly pirating software and against people for allegedly selling not-for-resale software to unsuspecting purchasers. The actions, taken amid a technology landscape pocked by the fraudulent activities of those seeking to undermine fair business practices, are designed to help protect Microsoft’s partners and consumers from those engaging in the illegal sale of Microsoft® software — from counterfeit products to not-for-resale software deceitfully obtained and sold at retail.
Seven lawsuits filed against nine individuals from California, Maryland, New York, Texas and Virginia allege breach of a software agreement by which the individuals obtained a number of Microsoft Action Pack Subscriptions (MAPS). The MAPS Initiative is a program that provides eligible partners with discounted Microsoft software packages for product evaluation and internal use. The MAPS-related lawsuits, the first Microsoft has filed, allege egregious abuse of this program by people who have repeatedly and knowingly broken the terms of the agreement. Some of those named in the suits have allegedly attempted to sell software from their subscriptions to consumers through online auction sites.
“Our partners are negatively affected by the activities of those who compete unfairly by either selling illegal software and components or abusing agreements that other partners abide by,” said John Ball, general manager for Microsoft’s U.S. System Builders Partner Group, which works with businesses that manufacture computers. “These dishonest resellers sell products at minimal costs, undercutting the business of legitimate resellers. Those who operate ethically within the law take a hard financial hit. We like to see our honest partners succeed.”
Through its own monitoring of the MAPS program, Microsoft became aware of abuses of the subscription service, including subscribers falsifying information to receive the program benefits and software titles multiple times. The MAPS agreement stipulates that partners may subscribe to the MAPS program only once each year, that the software may not be resold, and that the software must be used only at the partner’s primary business location and only for business purposes such as application development and testing.
“Our honest partners have asked us to intervene to help protect those who abide by laws and rules governing software use and distribution,” said Mary Jo Schrade, senior attorney at Microsoft. “The lawsuits announced today are a necessary step to help ensure that those who knowingly and repeatedly violate known and widely accepted standards will not be given free rein to do so. We want to protect the business of honest resellers and try to ensure a level playing field for our partners.”
The individuals named in the MAPS lawsuits are Catherine Will and Philip Parana, Buffalo, N.Y.; James Baker, San Diego; Kenneth Ham, College Station, Texas; Benjamin Hesson, Leesburg, Va.; Charles Klosek, Glenn Dale, Md.; Jimmy Huh, Encinitas, Calif.; Eric Mitchell, Santa Ana, Calif.; and Lang Ngo, San Francisco.
Three other lawsuits, filed by Microsoft against companies in Florida, Ohio and Pennsylvania, allege counterfeit software abuses. Those companies are Auction Hut, Toledo, Ohio; Comp-Discounts Software, Boca Raton, Fla.; and Computer Techs, Grove City, Pa.
Consumer complaints filed through (800) RU-LEGIT (785-3448) helped drive the counterfeiting lawsuits in Florida, Ohio and Pennsylvania. In those cases, Microsoft purchased software from each of the defendant companies to test its authenticity in response to consumer complaints. When it was confirmed that the software was illegitimate, Microsoft sent cease-and-desist letters to the companies with educational information about how to operate legally. The lawsuits were filed only after the alleged perpetrators would not change their behavior.
Microsoft’s honest resellers and partners are not the only ones harmed by the practices of software pirates and counterfeiters. When consumers unintentionally purchase unlicensed, counterfeit or pirated software, they receive software that lacks the value-added services of genuine software. Consumers who use counterfeit software are not eligible for technical support or product updates, and those who use illegal software may unwittingly facilitate the transmission of malicious code onto their system. Customers can easily find out if they bought genuine software by running the Windows® Genuine Advantage tool available at the Microsoft Download Center, Windows Update or Microsoft Update.
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.
Legal Case Summary
Filed in the U.S. District Court for the Southern District of Florida
Microsoft Corp. v. Comp-Discounts of Boca Raton, Fla., alleging distribution of counterfeit Windows 98 and Office 2000 Professional software.
(Case No. 05-81113)
Filed in the U.S. District Court for the Northern District of Ohio
Microsoft Corp. v. Auction Hut, LLC, of Toledo, Ohio, alleging distribution of counterfeit Windows XP Professional and Office 2003 Professional software.
(Case No. 3:05CV7467 )
Filed in the U.S. District Court for the Western District of Pennsylvania
Microsoft Corp. v. Computer Techs of Grove City, Pa., alleging distribution of counterfeit and infringing Windows XP Professional, Office XP Professional and Money 2004 software.
(Case No. CA 05-1710)
Filed in the U.S. District Court for the Western District of Washington
Microsoft Corp. v. Jimmy Huh of Encinitas, Calif., alleging violation of the MAPS Initiative agreement.
(Case No. C05-1927MJP)
Filed in the U.S. District Court for the Western District of Washington
Microsoft Corp. v. James Baker of San Diego, Calif., alleging violation of the MAPS Initiative agreement.
(Case No. C05-1924MJP)
Filed in the U.S. District Court for the Western District of Washington
Microsoft Corp. v. Lang Ngo of San Francisco, Calif., alleging violation of the MAPS Initiative agreement.
(Case No. C05-1925MJP)
Filed in the U.S. District Court for the Western District of Washington
Microsoft Corp. v. Eric Mitchell of Santa Ana, Calif., alleging violation of the MAPS Initiative agreement.
(Case No. CO5-1928MJP)
Filed in the U.S. District Court for the Western District of Washington
Microsoft Corp. v. Charles Klosek of Glenn Dale, Md., alleging violation of the MAPS Initiative agreement.
Microsoft Corp. v. Benjamin Hesson of Leesburg, Va., alleging violation of the MAPS Initiative agreement.
(Case No. C05-1923TSZ)
Filed in the U.S. District Court for the Western District of Washington
Microsoft Corp. v. Philip Parana and Catherine Will of Buffalo, N.Y., alleging violation of the MAPS Initiative agreement.
(Case No. C05-1922MJP)
Filed in the U.S. District Court for the Western District of Washington
Microsoft Corp. v. Kenneth Ham of College Station, Texas, alleging violation of the MAPS Initiative agreement.
(Case No. C05-1926TSZ)



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