Microsoft today announced settlements with 15 traders caught selling illegal software in regions throughout the UK. One reseller agreed a £75,000 settlement after customer complaints revealed he was illegally reselling Microsoft Windows recovery discs, many of which didn’t work. A further 14 traders faced court action in respect of hard disk loading1 and selling improperly licensed software to unsuspecting customers over the last six months.
Microsoft is committed to protecting consumers who are put at risk from viruses and identity theft when they use illegal software. These cases demonstrate that whether pirates are targeting consumers online or through more traditional bricks-and-mortar operations, they can’t expect to get away with illegal trading. At a time when more and more people are feeling the pinch and searching online for the cheapest deals, Microsoft makes every effort to quickly stamp out any unlawful sales on sites such as eBay and eBid, and works with five of the biggest online auction sites and shops in the UK to make sure software sold is genuine.
Microsoft recognises that piracy is a global problem but that it needs to be tackled at a local level. Telford-based Genner Sales first came to Microsoft’s attention in 2006 when several complaints were received from customers about Windows recovery discs, carrying the reseller’s name, that didn’t deliver what they promised. Microsoft recovery discs are not authorised for resale, and can’t be re-branded without the software vendor’s permission, which owner Kevin Genner wrongly claimed he had. In an effort to prevent customers from being ripped off, Microsoft challenged Genner over his illegal business model and he signed undertakings in October 2007 not to sell the recovery discs again. However, he continued to do so throughout 2008, disregarding the legally binding commitment he had made.
Microsoft tried persistently to work with Genner to educate him about its licensing rules and rehabilitate him, and was eventually forced into court action. Genner finally agreed to stop trading illegally and to pay £75,000 costs and damages for copyright infringement. Microsoft has agreed to defer enforcing this obligation unless Genner resumes his illegal trading.
Successful settlements were reached with the following other 14 resellers, who all admitted to selling software illegally:
* Abbey Computing – Sherborne, Dorset
* Aston IT Services Ltd – Swallownest, Sheffield
* Citrus Computers – Torquay, Devon
* Computer Bits – Harlow, Essex
* Computer Hypermarket – Exeter, Devon
* Discount Computers (South West) Ltd – Chippenham, Wiltshire
* Informatica 2000 Limited – Bedford, Bedfordshire
* IT Collective Ltd – Stone, Staffordshire
* Lichfield Computer Centre Ltd – Lichfield, Staffordshire
* S.P.C. Computers Ltd – Plymouth, Devon
* Supercheap aka Coolputer – Nottingham, trading on eBid
* Technique786 – Newcastle Upon Tyne, trading on eBay
* The Computer Cellar (Albany UK Ltd) – Cheltenham, Gloucestershire
* Valatech – Bromborough, Merseyside
Microsoft has been working closely with each retailer to help them ‘get legal’ - to ensure the owners know how to sell software in a legitimate way and that all their staff are trained and understand that selling reliable, genuine software is the best way for them to keep their customers happy and their businesses profitable. Being caught out and named and shamed is never good for business, especially for small firms like these. Microsoft visits computer shops on a regular basis to make sure their knowledge of the software rules is completely up to date. It’s clear that, despite encouraging results, it’s a huge undertaking and the education process still has some way to go.
Mr Chistopher Hunt from Lichfield Computer Centre Ltd, one of the computer shops that faced legal action, said: “We recognise that we weren’t installing Microsoft software correctly, and that’s something we take seriously. We’ll be working with Microsoft over the next few weeks to make sure what we do falls within their software rules from now on. It’s good to see Microsoft working with small computer shops like ours to ensure we’re up to speed on the right way to use and sell their software. Getting it right is important to us and to our customers – the lifeblood of a local business like ours.”
Graham Arthur, anti-piracy attorney at Microsoft UK said: “We recognise that conditions are getting more challenging, and Microsoft’s resolve to eradicate illegal trading is strengthened as we see honest businesses and unwitting consumers threatened. What most people don’t realise is that the PC they bought from their local computer shop could have come with counterfeit software that is likely to be infected or harmful. In the UK, it’s estimated that nearly one in three computer programs installed on computers are unlicensed, which puts PC users at risk of losing personal information such as bank details, or even family photo albums and music collections saved on their computers.”
“It’s therefore imperative that we try to reduce the amount of fake computer programs PC dealers sell, by educating them and clamping down on the dishonest retailers who are putting genuine computer firms out of business. We are constantly building on the momentum we have created so far in reducing the amount of counterfeit and illegal software on sale in Britain.” Arthur continues, “We hope that these cases, along with recent press stories regarding the approach we take to piracy, will help deter other computer shop owners and highlight the extent of the problem to consumers, encouraging them to be more aware of these dangers when purchasing software.”
And as consumers intensify their search for those too-good-to-be-true prices, retailers have a role to play in educating them in the same way that Microsoft is educating resellers. Helping consumers understand the true value of the hardware and genuine software they’re buying – along with legalisation options such as the Windows Get Genuine Kit2 – will help establish retailers’ expert credentials.
Trading Standards Institute backs effort to protect consumers
Microsoft’s aim to protect consumers from the dangers of illegal software, ensuring that they’re buying genuine Microsoft products is supported by the Trading Standards Institute.
As Bryan Lewin, Lead Officer with the Trading Standards Institute commented: "Trading Standards Departments take the issue of rogue trading very seriously. Ridding the channel of piracy is more important now than ever as it impacts everyone from the unwitting consumer to the hard-working, family owned computer shop selling genuine software. Times are hard for many small businesses without the added strain of having to compete on an uneven footing."
"It is disturbing to see so many cases at the start of the New Year but we are one hundred percent behind any industry efforts to protect consumers and to ensure they aren’t being duped when buying goods or services."