Microsoft Takes Action to Stop the Diversion of Software From Education Programs

Software intended for students and schools allegedly sold to unsuspecting

retail consumers.

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    REDMOND, Wash., April 3 /PRNewswire-FirstCall/ -- Today Microsoft Corp.
 announced efforts to shut down alleged international software smuggling
 operations. As part of that effort, Microsoft has filed nine lawsuits and
 issued more than 50 cease and desist letters.
     (Logo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )
     Companies in Jordan and elsewhere have made millions of dollars in
 illegal profits by trafficking in specially priced academic software
 diverted from education programs, according to allegations in the lawsuit
 complaints. This software was passed off to consumers in the United States
 who unknowingly lacked the license to use it. The lawsuits were filed in
 federal courts in California, New York, New Jersey, Florida, Nevada and
 Montana.
     "To those who say software piracy is a victimless crime, I would say
 this case tells a different story," said Bonnie MacNaughton, senior
 attorney at Microsoft. "The defendants in these lawsuits and others are
 charged with profiting from selling clearly marked educational software to
 unsuspecting retail customers who were not licensed to use it -- and
 potentially depriving students and schools of the opportunity to benefit
 from the latest technologies."
     Microsoft routinely works with governments and public agencies around
 the world to provide heavily discounted software to the global academic
 community. Through these programs, students and schools are provided with
 access to the latest technologies that they might not otherwise be able to
 afford.
     Today's lawsuits allege that companies in Jordan and elsewhere posing
 as academic resellers obtained hundreds of thousands of copies of
 discounted Microsoft(R) Windows(R) and Office system software intended for
 students in the region. These companies reaped millions of dollars in
 illegal profits by allegedly selling the software to Internet retailers in
 the United States rather than supplying it to the students. Many of the
 Internet retailers, in turn, allegedly made hefty profits by selling the
 software at retail prices to unsuspecting American consumers who were
 deceived into buying software that was not licensed for their use.
     "Jordan has invested heavily in transforming itself into a full-fledged
 knowledge economy," said His Excellency Eng. Basem Rousan, Jordan's
 minister of Information and Communications Technology. "Companies that
 break Jordan's intellectual property laws will be prosecuted to the full
 extent of the law." Investigations are being pursued in other countries
 where a similar scheme has been used.
     EDirectSoftware.com, one of the largest offenders, has already agreed
 to settle Microsoft's lawsuit out of court for more than $1 million in cash
 and property. Other merchants that received cease and desist letters have
 agreed to voluntarily stop selling the software, which is clearly marked
 "Student Media" and "Not for retail or OEM distribution. Not for resale."
     Microsoft continues to be committed to providing educational
 organizations and students around the world with affordable software
 through its academic programs, and will initiate legal action to protect
 the integrity of those programs.
     Tips to the Microsoft anti-piracy hot line at (800) RU-LEGIT (785-3448)
 helped the company identify this illegal scheme. Anyone who receives
 Student Media or academic software being sold as retail is asked to call
 the hot line and report the offense.
     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: Microsoft, Windows, Visio, FrontPage and Windows Server are
 trademarks of the Microsoft group of companies.
     The names of actual companies and products mentioned herein may be the
 trademarks of their respective owners.
     Legal Case Summaries
     Filed in the United States District Court for the Northern District of
 California
     Microsoft Corp. v. EEE Business Inc., dba eBusZone.com and EBZ EBZ,
 Ming Ni Shang, Alice Wang, aka Lifeng Wang, Nancy Linker and John Does 1-5
 (Fremont, Calif.), alleging importation and distribution of infringing
 Windows XP Professional, Windows XP Professional x64 Edition and Office
 Professional Enterprise Edition 2003 software.
     Filed in the United States District Court for the Northern District of
 California
     Microsoft Corp. v. Eric Chan and Ruhui Li, dba LCTech, and John Does
 1-5 (Union City, Calif.), alleging importation and distribution of
 infringing Windows XP Professional, Windows XP Professional x64 Edition and
 Office Professional Enterprise Edition 2003 software.
     Filed in the United States District Court for the Northern District of
 California
     Microsoft Corp. v. Intrax Group Inc., dba Surplus Computers, Michael
 Mak, and John Does 1-5 (Santa Clara and San Jose, Calif.), alleging
 importation and distribution of infringing Windows XP Professional, Windows
 XP Professional x64 Edition, Office Professional Enterprise Edition 2003
 and Office Standard 2003 software.
     Filed in the United States District Court for District of Nevada
     Microsoft Corp. v. Global Online Distribution, LLC, Dale Harelik and
 John Does 1-5 (Las Vegas, Nev.), alleging importation and distribution of
 infringing Windows XP Professional and Office Professional Enterprise
 Edition 2003 software.
     Filed in the United States District Court for the Southern District of
 Florida
     Microsoft Corp. v. Big Boy Distribution LLC and Steven Blackburn
 (Riviera Beach, Fla.), alleging importation and distribution of infringing
 Windows XP Professional, Windows XP Professional x64 Edition, Office
 Professional Enterprise Edition 2003 and Office Standard 2003 software.
     Filed in the United States District Court for the District of New
 Jersey
     Microsoft Corp. v. Technology Enterprises, LLC, James Craghead, and
 John Does 1-3 (Palm Beach Gardens, Fla.), alleging importation and
 distribution of infringing Windows XP Professional software.
     Filed in the United States District Court for the Southern District of
 Florida
     Microsoft Corp. v. John Does 1-10 (Miami, Fla.), alleging importation
 and distribution of infringing Office Standard 2003 software.
     Filed in the United States District Court for the District of Montana
     Microsoft Corp. v. eDirectSoftware, Jesse Willms, Linda Willms, Dave
 Willms, 1016363 Alberta Ltd., 1021018 Alberta Ltd. and John Does 1-10
 (Billings, Mont.), alleging, among other claims, importation and
 distribution of infringing Windows XP Professional, Windows XP Professional
 x64 Edition, Windows XP Home, Office Professional 2003, Office Professional
 Enterprise Edition 2003, Office Small Business Edition 2003, Office
 Standard 2003, Windows 2000 Professional, Office XP Professional, Office
 Professional 2000, Money 2004, Windows Server(R) Standard 2003, Windows
 Server Enterprise Edition 2003, Exchange Server Enterprise Edition 2003,
 Project Professional 2003, Project Standard 2003, Visio(R) Professional
 2003, Visio Standard 2003, FrontPage(R) 2003, Microsoft SQL Server(TM) 2000
 Enterprise Edition, Windows 2000 Advanced Server, Windows 98 Standard, and
 Office 97 Professional software.
     Filed in the United States District Court for the Western District of
 New York
     Microsoft Corp. v. Aron Tauber, dba T&A Compubank, TACompubank.com, and
 T-A-Compubank.com (East Amherst, N.Y.), alleging, among other claims,
 distribution of infringing Office Professional 2003, Office Professional
 Enterprise Edition 2003, Office Small Business Edition 2003, Office
 Standard 2003, Office XP Professional, Office XP Standard, Office Small
 Business Edition 2000, Exchange Server Enterprise Edition 2003, Project
 Professional 2003, Visio 2003 Professional, and FrontPage 2003.
 
 

SOURCE Microsoft Corp.