Microsoft cracks down on e-auctions

Microsoft today announced it was taking legal action against 63 online auctioneers in 12 different countries for selling counterfeit software.

The software maker said these firms allegedly orchestrated international marketing schemes to sell counterfeit software on online auction sites to unsuspecting customers, including the alleged fraudulent sale of so-called "Blue Edition" counterfeit Windows XP software and illicit other components.

While genuine Windows XP products are still available through some PC maker channels, the product is coming to the end of its sales cycle. So, the fictional "Blue Edition" marketing scheme fools unsuspecting consumers into purchasing a counterfeit software CD.

In the UK, Microsoft has initiated seven civil cases for alleged trademark infringement against internet auctioneers, accusing them of selling the high-quality counterfeit Windows software, as well as copies of Office 2007 and 2003.

Microsoft said that these UK sellers may have sold over 900 individual counterfeits, with an estimated value of over 69,000. The majority of the sellers were found after investigators made test purchases, although Microsoft said it was also reacting in these cases to complaints raised by concerned customers.

Although some global internet auction platforms, like eBay, proactively cooperate with Microsoft in the fight against counterfeiters, David Finn, associate general counsel for worldwide anti-piracy and anti-counterfeiting at Microsoft, said dishonest auctioneers were too often taking advantage of them.

In one case, counterfeiters in New Zealand allegedly sold counterfeit they obtained in China to customers in six countries.

Finn pointed out: "None of these actions we have filed today have been brought against eBay or other auction sites. In many cases, sites like eBay can and do play a role in fighting the problem."

But he added: "These dealers are peddling bogus products that can put customers and their personal information at serious risk."

Microsoft also highlighted its June 2006 forensic analysis of counterfeit Windows XP disks, which found that 34 per cent of the disks could not be installed correctly and 43 per cent contained tampered code that could leave a victim open to data loss, identity theft or other malicious attacks.

The lawsuits form part of Microsoft's Genuine Software Initiative, which is aimed at increasing awareness about the consequences of software piracy, advancing engineering technologies to protect its intellectual property and supporting anti-piracy policy and law enforcement.

The 63 legal actions are taking place in the UK, US, Germany, France, Argentina, Brazil, Canada, Colombia, the Dominican Republic, Japan, Mexico and New Zealand.

Microsoft also urged businesses and consumers to be wary of counterfeit software, directing them to www.howtotell.com for information on how to make safe software purchasing decisions.