Microsoft Intensifies Worldwide Campaign Against Internet Piracy and Criminal Counterfeiting

Legal Actions Taken in 22 Countries to Protect Consumers From Acquiring Bogus

Software



Apr 02, 2001, 01:00 ET from Microsoft Corp.

    REDMOND, Wash., April 2 /PRNewswire/ -- Microsoft Corp. (Nasdaq:   MSFT)
 today announced actions taken against organized criminal counterfeiters in
 22 countries by enforcement agencies worldwide, marking a new wave in
 Microsoft's global campaign against software piracy and online fraud. In
 addition, Microsoft has sought the immediate removal of alleged counterfeit
 and illegal software offerings from Internet sites and auctions, bringing the
 total number of takedowns to more than 47,000 over the last six months and
 88,000 in the last two years.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )
 
     Criminal Counterfeiting Reaches High-Tech Age
     "The explosive growth of Internet users has spawned an equally explosive
 growth of Internet abusers," said John Varrone, assistant commissioner, Office
 of Investigations, U.S. Customs Service. "Cyber-savvy criminals increasingly
 use the speed and anonymity of the Internet to sell and distribute counterfeit
 software, music and videos worldwide. The potential revenue losses to
 legitimate businesses are enormous."
     Widespread use of and access to the Internet has significantly changed the
 counterfeit software distribution model, allowing counterfeiters to more
 easily market and distribute smaller quantities of counterfeit software
 internationally, often directly to consumers.
     "In the past year, nearly 5 million units of counterfeit Microsoft(R)
 software and hardware were seized worldwide, and this number is up
 dramatically from the previous year," said Tim Cranton, Internet anti-piracy
 attorney for Microsoft. "Microsoft has put significant resources behind its
 global anti-counterfeiting efforts. We're also working cooperatively with law
 enforcement agencies, industry partners and business organizations to help
 protect consumers and bring counterfeiters to justice."
     Software piracy and counterfeiting take a toll on the global economy and
 adversely affect honest resellers, consumers and the software industry
 worldwide. According to a Business Software Alliance study, software piracy
 caused the loss of $12 billion in revenue worldwide in 1999, which translates
 into nearly 107,000 lost jobs and more than $5 billion in unrealized wages in
 the United States alone.
     Microsoft's campaign against Internet piracy and criminal counterfeiting
 has included legal actions in 22 countries, including Argentina, Brazil,
 Canada, Colombia, Germany, Hong Kong, Hungary, Macau, Malaysia, Peru, the
 Philippines, the People's Republic of China, Poland, Romania, Singapore,
 Taiwan, Thailand, Venezuela, the United Kingdom and the United States.
     "The U.S. Customs Service is proud to team up with Microsoft and other
 producers of intellectual property to fight these cyber-pirates. Together, we
 can attack their illegal activities far better than either of us could do
 alone," said Varonne.
 
     Fighting Internet Piracy
     Since the launch of its worldwide Internet anti-piracy campaign and
 Internet Scanning Tool six months ago, Microsoft has taken legal action
 against 47,000 auction postings and Internet sites for allegedly offering
 counterfeit and illegal copies of software bringing the total number of
 auction postings and Internet site takedowns to 88,000 over the last two
 years. The Internet Scanning Tool, which operates 24 hours a day, 7 days a
 week to identify illegal online offerings, expedites the process of finding
 Web pirates and has enabled Microsoft to identify and address thousands of
 illegal sites in a single day and work with Internet service providers and
 auction sites to remove illegal products from the Internet.
 
     The Need for Intellectual Property Protection
     Creators of legitimate software and other intellectual property content
 are increasingly disadvantaged when their rights to protect their own ideas
 are not respected and their work is illegally copied.
     "As the courts have indicated with the recent Napster ruling, the
 importance of protecting intellectual property in today's digital age can't be
 underestimated," said Brad Smith, deputy general counsel for Worldwide Sales
 at Microsoft. "As distribution models change and more content moves to the
 Internet, it is critical that we continue to take steps to protect creators'
 intellectual property rights and foster broad economic growth."
     Microsoft is committed to developing and implementing technology solutions
 that disseminate and protect intellectual property on the Internet. As
 emerging technologies continue to make it easier to distribute pirated
 products online, it is imperative that content and service providers work
 together to provide consumers with legitimate online content and improve ways
 to legally access and distribute copyrighted works.
 
     Consumers Are the Victims
     Consumers -- both knowingly and unwittingly -- often become victims of
 piracy and online fraud by purchasing software that turns out to be
 counterfeit. In some cases, consumers who order products over the Internet
 never receive anything at all, and sometimes they receive a defective CD or a
 download infected with a virus. With an upsurge in consumer complaints to the
 Internet Fraud Complaint Center regarding counterfeit goods purchased online,
 it's important for consumers to be smart shoppers by learning to spot the
 warning signs of pirated software on the Internet and being aware of the risks
 that accompany it.
     Tips on how to shop safely for software online are available on
 Microsoft's Anti-Piracy Web site at http://www.microsoft.com/piracy/ .
 Customers or resellers with questions about the legitimacy of Microsoft
 software should contact the Microsoft anti-piracy hot line, toll-free, at
 800-RU-LEGIT (785-3448) or send e-mail to piracy@microsoft.com .
     Founded in 1975, Microsoft is the worldwide leader in software, services
 and Internet technologies for personal and business computing. The company
 offers a wide range of products and services designed to empower people
 through great software -- any time, any place and on any device.
 
     NOTE:  Microsoft is a registered trademark or trademark of Microsoft Corp.
 in the United States and/or other countries.
     The names of actual companies and products mentioned herein may be the
 trademarks of their respective owners.
 
       Microsoft Intensifies Worldwide Efforts to Combat Software Piracy
                                Case Fact Sheet
                                 April 2, 2001
 
     North America Civil Actions
     Since January 2000 73 cases involving Internet piracy were settled.
 Related settlements and judgments totaled more than $17.7 million.
     Microsoft Corp. recently filed the following five Internet piracy civil
 cases in the United States:
 
     -- Bi-Rite Computers of Riverside, Calif., for the alleged distribution of
        counterfeit Microsoft(R) Office 2000 Professional, Office 97
        Professional and Windows NT(R) Server. Civil case number:
        EDCV - CV-01-214 VAP, in the Central District of California, Eastern
        Division.
 
     -- EasyPCsoftware.com of Los Angeles, Calif., allegedly distributed
        counterfeit Office 2000 Professional and Office 2000 Premium. Brian
        Calderon used a variety of aliases including
        http://www.easyPCsoftware.com/ to allegedly post more than
        3,000 illegal downloads of Microsoft software on Internet auction
        sites. Civil case number: EDCV - CV-01-215 VAP, in the Central District
        of California, Eastern Division.
 
     -- Happy Beagle Marketing (aka Modems Unlimited) of Washington and
        Bloomington, Ill., for alleged distribution of counterfeit Office 97
        Professional and Windows(R) 98 via the Web site
        http://www.fastmodems.com/ . Civil case number: 01-1145, in the Central
        District of Illinois, Peoria Division.
 
     -- Liz Tapanes Enterprises of Memphis, Tenn., for alleged distribution of
        counterfeit Office 2000 Professional and Office 97 Professional via the
        Web site http://www.cheap-software-online.com/. Civil case number:
        01-2225 MLA, in the Western District of Tennessee, Western Division.
 
     -- Metro-Tek Inc. of Southfield, Mich., for alleged distribution of
        counterfeit Office 2000 Professional, Office 97 Professional and
        Windows 98 via the Web site http://www.metro-tek.com/ and their retail
        location. Civil case number: 01-71141, in the Eastern District of
        Michigan, Western Division.
 
     North America Criminal Actions
     Calgary:  In December 2000 the Calgary Royal Canadian Mounted Police
 seized over $167,000 in illegal software from the residence of Dean Wolf of
 Muckabout.com. Wolf allegedly was selling illegal Microsoft software on his
 Muckabout.com Web site and he advertised on Amazon, eBay and Yahoo! Wolf has
 been charged with offenses under section 42 of the Copyright Act.
 
     California:  Defendant Paul Stamatis is awaiting sentencing in May 2001,
 stemming from a joint law enforcement effort among the Los Angeles Sheriff's
 Office, Los Angeles Police Department, U.S. Postal Service and FBI in New
 York. Stamatis, along with 11 others, was arrested after daylong surveillance
 that took place in the greater Los Angeles area in February 2000.
 Approximately 12,000 units of counterfeit software were seized. Five
 defendants, including Stamatis, have pleaded guilty and four of them have been
 sentenced.
 
     Illinois/Massachusetts:  Federal agents uncovered a worldwide ring of
 sophisticated software pirates who electronically hijacked thousands of
 copyright computer programs over the Internet, including, at the time, the
 yet-to-be released Microsoft Office 2000 Premium. The ring's members, who call
 themselves "Pirates with Attitude," used a barter system in which they were
 allowed to download pirated software from the group's inventory in exchange
 for contributing copyright programs under their control. The group, which
 operated a Web site called "Sentinel," had hundreds of members worldwide.
 Membership was by invitation only, and access to the site was available only
 through recognized computer addresses.
     A man described as a founding member of the group's "council,"
 Robin Rothberg of North Chelmsford, Mass., was arrested and charged with
 conspiracy to infringe on copyrights. The impending criminal prosecution in
 this case is scheduled for May 7, 2001, in Illinois.
 
     Asia Criminal Actions
     Hong Kong:  Hong Kong's Independent Commission Against Corruption (ICAC)
 raided the offices of the Optical Disk Manufacturers Association and seized
 over two-dozen counterfeit Microsoft "stampers" (used to produce software
 CDs), valued at approximately $50 million U.S. The raid also resulted in the
 arrest of five individuals. In an unrelated action, ICAC officials arrested an
 individual associated with sales of counterfeit software over the Internet.
 
     Macau:  As a result of two separate vehicle searches at the border between
 Macau and southern China, Macau police recently seized more than 4,500 pieces
 of counterfeit software and made two related arrests.
 
     Malaysia:  On Aug. 19, 2000, the Special Copyright Task Force led by the
 Ministry of Domestic Trade and Consumer Affairs (MDTCA) raided nine locations
 for suspected manufacture and distribution of counterfeit products for a
 regional counterfeiting ring. One of the locations was a factory located in
 the Klang Valley. The 84-member raid team was led by the MDTCA and was
 supported by the Malaysian police, Anti-Corruption Agency and Microsoft
 investigators.
     More than 100 CD stampers/gold masters, 200,000 counterfeit CDs and
 20 personal computers were seized, and 17 vehicles were impounded as a result
 of the raid. More important, the team secured evidence from the raid that led
 to suspicion of large-scale production and global distribution of counterfeit
 Microsoft products. The estimated value of the seizures is over $80 million
 U.S. This is the largest counterfeiting ring breakup in South Asia to date.
     This case began with an investigation of a Malaysian-based Web site that
 was allegedly offering counterfeit Microsoft products to Australia via the
 Internet. Seizures in Australia subsequently confirmed the origin of the
 counterfeit products being the Malaysian-based Web site.
 
     Philippines:  In August 2000, an enforcement team of officials from the
 National Bureau of Investigations, Videogram Regulatory Board and the Council
 to Combat Video Piracy raided a CD factory in the Clarkfield Special Economic
 Zone, Pampanga. The raiding team represented the interests of the Motion
 Picture Association, Sony Computer Entertainment, Sega Enterprises, IFPI and
 the Business Software Alliance along with Microsoft. More than 250,000
 counterfeit CD-ROMs were seized. The production equipment confiscated included
 a Krauss Maffei replicating machine, a CD-printing machine and CD-production
 paraphernalia.
 
     People's Republic of China:  Chinese officials recently raided a factory
 in Shenzhen and seized 2,600 pieces of high-quality counterfeit software,
 together with loose counterfeit manuals and related documentation. In a
 separate raid of a Shenzhen warehouse, Technical Supervision Bureau officials
 discovered and seized over 5,000 counterfeit Microsoft keyboards.
 
     Singapore:  In February 2001, after hours of surveillance, the
 Intellectual Property Rights Branch of the Singapore police arrested the owner
 of a van and seized its contents of approximately 20,000 pieces of counterfeit
 CDs. Singapore police then identified the suspect in the raid as a syndicate
 leader. Later that same day, the police raided a retail shop at Toa Payoh
 Central owned by the suspect and detained three other syndicate members. Later
 in the month, Singapore police raided a retail outlet in Queensway Shopping
 Center and found it to be linked to the same syndicate. That raid resulted in
 the arrest of two additional syndicate members and a seizure of
 10,000 counterfeit CDs consisting of counterfeit product of the Business
 Software Alliance's member companies, including Microsoft, Interactive Digital
 Software Association, Singapore Phonogram & Videogram Association and Sony
 Computer Entertainment.
 
     Singapore:  On Feb. 7, 2001, the Intellectual Property Rights Branch of
 the Singapore police raided a makeshift stall outside Sim Lim Square.
 Inspection of the seizure confirmed 147 pieces of the CDs that were seized
 contained infringing Business Software Alliance member programs. The raid was
 a follow-up to police actions focused on tackling counterfeit CD rings
 operated by illegal syndicates.
 
     Taiwan:  The Police Administration of Taiwan conducted a national Internet
 piracy sweep from late December 2000 through early January 2001 to crack down
 on optical disc piracy and pornography and to protect copyrights in
 cyberspace.
     Prosecutor's offices issued 241 search warrants, targeted 189 illegal Web
 sites offering pirated optical discs and child pornography and detained
 237 defendants. More than a half-million pieces of illegal CD-ROMs and CD-Rs
 from 142 Web sites were seized.
 
     Thailand:  On March 15-17, 2001, police officers from the Economic Crime
 Investigation Division raided two outlets located in Pantip Plaza and
 Mahboonkrong Shopping Center for distribution of counterfeit CD-ROMs. The
 raids resulted in the seizure of 17,000 pirated CDs and CD-ROMs. Three
 shopkeepers were arrested and charged with copyright infringement.
 
     Europe Criminal Actions
     United Kingdom:  Late last month, a London jury convicted a criminal ring
 responsible for a multimillion-dollar international counterfeiting racket. The
 gang specialized in trading counterfeit Microsoft software internationally and
 is suspected to have sold millions of pounds worth of counterfeit software.
 The racketeers, who relied on various hard-core criminal tactics, bundled
 counterfeit disks imported from Asia with genuine Certificate of Authenticity
 labels obtained in the armed robbery of a Scottish printing factory.
     In November 2000, as part of its global "Operation Bidder Beware" sweep,
 the Business Software Alliance filed and served three sets of legal
 proceedings in the United Kingdom against suspected suppliers of counterfeit
 software. Those suppliers were using the auction site http://www.qxl.com/ to
 advertise their products for sale and are believed to have sold numerous
 copies of counterfeit software through the auction site.
 
     Germany:  In March 2001, Microsoft sent 30 cease-and-desist letters to
 targets that sold counterfeited software or burned CD-Rs on auction sites,
 including IEZ Auktionen, offerto.de, Ricardo.de.
     In November 2000, a software pirate near Frankfurt sold illegal software
 to a police officer. The police raided the target's home and seized six PCs,
 10 burners and approximately 1,000 gold CD-Rs. The target was arrested.
     Since January 2001, Microsoft has filed five criminal complaints against
 additional targets that have allegedly sold counterfeited software or burned
 CD-Rs through auction sites in Germany.
 
     Hungary:  In October 2000, law enforcement officers raided an alleged
 counterfeiter who distributed BSA member company software products over the
 Internet. During the raid the police seized CDs containing software
 applications from Adobe, Autodesk, Corel, Microsoft, Symantec and other
 products. This case led to the police conducting a raid of another pirate's
 operation where they seized more than 1,000 CDs containing various software
 publishers' software.
     In November 2000, law enforcement officers raided an alleged counterfeiter
 in Hodmezovasarhely who published a software program list on the Internet. The
 police seized nearly 10,000 compilation CDs with illegally copied software
 products. Damages are estimated at approximately $16,000 U.S.
 
     Poland:  In November 2000, law enforcement officers, with the assistance
 of the Business Software Alliance, raided the home of an individual in Poznan,
 who was allegedly distributing software over http://www.cdzone.prv.pl/ .
     In November 2000, a district court in Wroclaw found a software pirate
 guilty of selling illegal copies of Business Software Alliance member company
 software products over the Internet. The accused was ordered to pay a fine and
 court fees.  This is the first judicial decision against an Internet software
 pirate in Poland.
 
     Romania:  In October 2000, Sibiu police raided the home of an individual,
 Manea Bogdan, who was allegedly distributing illegal software over the
 Internet using three different sites, including
 http://www.megaone.com/oferta/ . The police found approximately 350 illegal
 CDs containing Adobe, Autodesk, Corel, Microsoft and Symantec programs. They
 also found illegal software on the defendant's computers as well as a list of
 the defendant's customers.
 
     Latin America Criminal Actions
     Argentina:  On Nov. 23, 2000 at the request of the Argentinean local
 software association (Software Legal) and the music industry's anti-piracy
 association, judicial authorities and the federal police in Buenos Aires
 raided the home offices of six resellers who were suspected of offering
 counterfeit Business Software Alliance member software, including Microsoft
 programs and music CDs, over the Internet. These resellers used Internet
 advertising to help market and sell the unauthorized products through SPAM
 e-mail and various Web pages. The raids conducted by the federal police
 yielded more than 6,000 unauthorized copies of music and software and several
 PCs and CD-burners. Five people were arrested in connection with the raid.
 
     Argentina:  On Jan. 16, 2001, the Anti-Fraud Division of the Argentinean
 police raided GRG Computacion, a reseller from Buenos Aires who was offering
 allegedly unlicensed software product via the Internet. During the raid, law
 enforcement authorities seized four PCs that were hard-disk loaded with
 unauthorized copies of software, as well as 20 CDs containing unlicensed
 copies of Microsoft products and other Business Software Alliance member
 companies' software.
 
     Brazil:  On Jan. 2, 2001, Brazilian authorities performed a civil
 inspection of a reseller who was offering unlicensed software via the
 Internet. The reseller, who was located in Sao Paulo state, was offering
 computers with unlicensed software products through his Web site
 http://www.curriculum.com.br/ . Ultimately, the court audited 78 computers.
 
     Brazil:  On Feb. 13, 2001, Microsoft and the Specialized Police Department
 in Computer Crimes from Minas Gerais state conducted a police raid against an
 Internet company called Mega CD. This company was offering unlicensed copies
 of software through the Internet. The police officers seized four duplicators,
 2,165 CDs with Microsoft software and 450 unused CDs. Two employees were
 arrested in the raid.
 
     Colombia:  After 10 days of surveillance, DAS (Colombia intellectual
 property police) raided the home of an Internet reseller in Bogota, on Dec.
 14, 2000. The reseller sold unauthorized copies of software products through a
 popular auction site called MercadoLibre.com. As a result of the raid,
 authorities seized 500 unauthorized software CDs, one PC, a CD burner and six
 catalogs listing software programs. New invoices for more than 20,000 copies
 of unlicensed software products were also confiscated. Law enforcement
 authorities believe that the software piracy operation, which allegedly sold
 pirated copies of Microsoft, Adobe, AutoDesk and Corel software, had been in
 operation for a number of years. The reseller was taken into custody by
 enforcement authorities.
 
     Peru:  On March 1, 2001, the Public Ministry arrested an Internet reseller
 who was offering unlicensed copies of software through the Internet. The
 authorities raided the reseller's home in Lima where he ran
 http://www.clubdelsoftware.com/ . Authorities found and seized 143 CDs
 containing unauthorized copies of Microsoft Office 97, Office 2000, Windows
 95, Windows 98 and Adobe software. They also seized 27 compilation CDs, eight
 CDs with movies, one PC and lists of the products he advertised.
 
     Venezuela:  On March 1, 2001, Venezuelan authorities raided the premises
 of Red Maniaco, an Internet company that was offering unlicensed copies of
 software through the Web site http://www.free20000@cantv.net/ .
 
     NOTE:  Microsoft, Windows and Windows NT are either registered trademarks
 or trademarks of Microsoft Corp. in the United States and/or other countries.
 The names of actual companies and products mentioned herein may be the
 trademarks of their respective owners.
 
 

SOURCE Microsoft Corp.
    REDMOND, Wash., April 2 /PRNewswire/ -- Microsoft Corp. (Nasdaq:   MSFT)
 today announced actions taken against organized criminal counterfeiters in
 22 countries by enforcement agencies worldwide, marking a new wave in
 Microsoft's global campaign against software piracy and online fraud. In
 addition, Microsoft has sought the immediate removal of alleged counterfeit
 and illegal software offerings from Internet sites and auctions, bringing the
 total number of takedowns to more than 47,000 over the last six months and
 88,000 in the last two years.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )
 
     Criminal Counterfeiting Reaches High-Tech Age
     "The explosive growth of Internet users has spawned an equally explosive
 growth of Internet abusers," said John Varrone, assistant commissioner, Office
 of Investigations, U.S. Customs Service. "Cyber-savvy criminals increasingly
 use the speed and anonymity of the Internet to sell and distribute counterfeit
 software, music and videos worldwide. The potential revenue losses to
 legitimate businesses are enormous."
     Widespread use of and access to the Internet has significantly changed the
 counterfeit software distribution model, allowing counterfeiters to more
 easily market and distribute smaller quantities of counterfeit software
 internationally, often directly to consumers.
     "In the past year, nearly 5 million units of counterfeit Microsoft(R)
 software and hardware were seized worldwide, and this number is up
 dramatically from the previous year," said Tim Cranton, Internet anti-piracy
 attorney for Microsoft. "Microsoft has put significant resources behind its
 global anti-counterfeiting efforts. We're also working cooperatively with law
 enforcement agencies, industry partners and business organizations to help
 protect consumers and bring counterfeiters to justice."
     Software piracy and counterfeiting take a toll on the global economy and
 adversely affect honest resellers, consumers and the software industry
 worldwide. According to a Business Software Alliance study, software piracy
 caused the loss of $12 billion in revenue worldwide in 1999, which translates
 into nearly 107,000 lost jobs and more than $5 billion in unrealized wages in
 the United States alone.
     Microsoft's campaign against Internet piracy and criminal counterfeiting
 has included legal actions in 22 countries, including Argentina, Brazil,
 Canada, Colombia, Germany, Hong Kong, Hungary, Macau, Malaysia, Peru, the
 Philippines, the People's Republic of China, Poland, Romania, Singapore,
 Taiwan, Thailand, Venezuela, the United Kingdom and the United States.
     "The U.S. Customs Service is proud to team up with Microsoft and other
 producers of intellectual property to fight these cyber-pirates. Together, we
 can attack their illegal activities far better than either of us could do
 alone," said Varonne.
 
     Fighting Internet Piracy
     Since the launch of its worldwide Internet anti-piracy campaign and
 Internet Scanning Tool six months ago, Microsoft has taken legal action
 against 47,000 auction postings and Internet sites for allegedly offering
 counterfeit and illegal copies of software bringing the total number of
 auction postings and Internet site takedowns to 88,000 over the last two
 years. The Internet Scanning Tool, which operates 24 hours a day, 7 days a
 week to identify illegal online offerings, expedites the process of finding
 Web pirates and has enabled Microsoft to identify and address thousands of
 illegal sites in a single day and work with Internet service providers and
 auction sites to remove illegal products from the Internet.
 
     The Need for Intellectual Property Protection
     Creators of legitimate software and other intellectual property content
 are increasingly disadvantaged when their rights to protect their own ideas
 are not respected and their work is illegally copied.
     "As the courts have indicated with the recent Napster ruling, the
 importance of protecting intellectual property in today's digital age can't be
 underestimated," said Brad Smith, deputy general counsel for Worldwide Sales
 at Microsoft. "As distribution models change and more content moves to the
 Internet, it is critical that we continue to take steps to protect creators'
 intellectual property rights and foster broad economic growth."
     Microsoft is committed to developing and implementing technology solutions
 that disseminate and protect intellectual property on the Internet. As
 emerging technologies continue to make it easier to distribute pirated
 products online, it is imperative that content and service providers work
 together to provide consumers with legitimate online content and improve ways
 to legally access and distribute copyrighted works.
 
     Consumers Are the Victims
     Consumers -- both knowingly and unwittingly -- often become victims of
 piracy and online fraud by purchasing software that turns out to be
 counterfeit. In some cases, consumers who order products over the Internet
 never receive anything at all, and sometimes they receive a defective CD or a
 download infected with a virus. With an upsurge in consumer complaints to the
 Internet Fraud Complaint Center regarding counterfeit goods purchased online,
 it's important for consumers to be smart shoppers by learning to spot the
 warning signs of pirated software on the Internet and being aware of the risks
 that accompany it.
     Tips on how to shop safely for software online are available on
 Microsoft's Anti-Piracy Web site at http://www.microsoft.com/piracy/ .
 Customers or resellers with questions about the legitimacy of Microsoft
 software should contact the Microsoft anti-piracy hot line, toll-free, at
 800-RU-LEGIT (785-3448) or send e-mail to piracy@microsoft.com .
     Founded in 1975, Microsoft is the worldwide leader in software, services
 and Internet technologies for personal and business computing. The company
 offers a wide range of products and services designed to empower people
 through great software -- any time, any place and on any device.
 
     NOTE:  Microsoft is a registered trademark or trademark of Microsoft Corp.
 in the United States and/or other countries.
     The names of actual companies and products mentioned herein may be the
 trademarks of their respective owners.
 
       Microsoft Intensifies Worldwide Efforts to Combat Software Piracy
                                Case Fact Sheet
                                 April 2, 2001
 
     North America Civil Actions
     Since January 2000 73 cases involving Internet piracy were settled.
 Related settlements and judgments totaled more than $17.7 million.
     Microsoft Corp. recently filed the following five Internet piracy civil
 cases in the United States:
 
     -- Bi-Rite Computers of Riverside, Calif., for the alleged distribution of
        counterfeit Microsoft(R) Office 2000 Professional, Office 97
        Professional and Windows NT(R) Server. Civil case number:
        EDCV - CV-01-214 VAP, in the Central District of California, Eastern
        Division.
 
     -- EasyPCsoftware.com of Los Angeles, Calif., allegedly distributed
        counterfeit Office 2000 Professional and Office 2000 Premium. Brian
        Calderon used a variety of aliases including
        http://www.easyPCsoftware.com/ to allegedly post more than
        3,000 illegal downloads of Microsoft software on Internet auction
        sites. Civil case number: EDCV - CV-01-215 VAP, in the Central District
        of California, Eastern Division.
 
     -- Happy Beagle Marketing (aka Modems Unlimited) of Washington and
        Bloomington, Ill., for alleged distribution of counterfeit Office 97
        Professional and Windows(R) 98 via the Web site
        http://www.fastmodems.com/ . Civil case number: 01-1145, in the Central
        District of Illinois, Peoria Division.
 
     -- Liz Tapanes Enterprises of Memphis, Tenn., for alleged distribution of
        counterfeit Office 2000 Professional and Office 97 Professional via the
        Web site http://www.cheap-software-online.com/. Civil case number:
        01-2225 MLA, in the Western District of Tennessee, Western Division.
 
     -- Metro-Tek Inc. of Southfield, Mich., for alleged distribution of
        counterfeit Office 2000 Professional, Office 97 Professional and
        Windows 98 via the Web site http://www.metro-tek.com/ and their retail
        location. Civil case number: 01-71141, in the Eastern District of
        Michigan, Western Division.
 
     North America Criminal Actions
     Calgary:  In December 2000 the Calgary Royal Canadian Mounted Police
 seized over $167,000 in illegal software from the residence of Dean Wolf of
 Muckabout.com. Wolf allegedly was selling illegal Microsoft software on his
 Muckabout.com Web site and he advertised on Amazon, eBay and Yahoo! Wolf has
 been charged with offenses under section 42 of the Copyright Act.
 
     California:  Defendant Paul Stamatis is awaiting sentencing in May 2001,
 stemming from a joint law enforcement effort among the Los Angeles Sheriff's
 Office, Los Angeles Police Department, U.S. Postal Service and FBI in New
 York. Stamatis, along with 11 others, was arrested after daylong surveillance
 that took place in the greater Los Angeles area in February 2000.
 Approximately 12,000 units of counterfeit software were seized. Five
 defendants, including Stamatis, have pleaded guilty and four of them have been
 sentenced.
 
     Illinois/Massachusetts:  Federal agents uncovered a worldwide ring of
 sophisticated software pirates who electronically hijacked thousands of
 copyright computer programs over the Internet, including, at the time, the
 yet-to-be released Microsoft Office 2000 Premium. The ring's members, who call
 themselves "Pirates with Attitude," used a barter system in which they were
 allowed to download pirated software from the group's inventory in exchange
 for contributing copyright programs under their control. The group, which
 operated a Web site called "Sentinel," had hundreds of members worldwide.
 Membership was by invitation only, and access to the site was available only
 through recognized computer addresses.
     A man described as a founding member of the group's "council,"
 Robin Rothberg of North Chelmsford, Mass., was arrested and charged with
 conspiracy to infringe on copyrights. The impending criminal prosecution in
 this case is scheduled for May 7, 2001, in Illinois.
 
     Asia Criminal Actions
     Hong Kong:  Hong Kong's Independent Commission Against Corruption (ICAC)
 raided the offices of the Optical Disk Manufacturers Association and seized
 over two-dozen counterfeit Microsoft "stampers" (used to produce software
 CDs), valued at approximately $50 million U.S. The raid also resulted in the
 arrest of five individuals. In an unrelated action, ICAC officials arrested an
 individual associated with sales of counterfeit software over the Internet.
 
     Macau:  As a result of two separate vehicle searches at the border between
 Macau and southern China, Macau police recently seized more than 4,500 pieces
 of counterfeit software and made two related arrests.
 
     Malaysia:  On Aug. 19, 2000, the Special Copyright Task Force led by the
 Ministry of Domestic Trade and Consumer Affairs (MDTCA) raided nine locations
 for suspected manufacture and distribution of counterfeit products for a
 regional counterfeiting ring. One of the locations was a factory located in
 the Klang Valley. The 84-member raid team was led by the MDTCA and was
 supported by the Malaysian police, Anti-Corruption Agency and Microsoft
 investigators.
     More than 100 CD stampers/gold masters, 200,000 counterfeit CDs and
 20 personal computers were seized, and 17 vehicles were impounded as a result
 of the raid. More important, the team secured evidence from the raid that led
 to suspicion of large-scale production and global distribution of counterfeit
 Microsoft products. The estimated value of the seizures is over $80 million
 U.S. This is the largest counterfeiting ring breakup in South Asia to date.
     This case began with an investigation of a Malaysian-based Web site that
 was allegedly offering counterfeit Microsoft products to Australia via the
 Internet. Seizures in Australia subsequently confirmed the origin of the
 counterfeit products being the Malaysian-based Web site.
 
     Philippines:  In August 2000, an enforcement team of officials from the
 National Bureau of Investigations, Videogram Regulatory Board and the Council
 to Combat Video Piracy raided a CD factory in the Clarkfield Special Economic
 Zone, Pampanga. The raiding team represented the interests of the Motion
 Picture Association, Sony Computer Entertainment, Sega Enterprises, IFPI and
 the Business Software Alliance along with Microsoft. More than 250,000
 counterfeit CD-ROMs were seized. The production equipment confiscated included
 a Krauss Maffei replicating machine, a CD-printing machine and CD-production
 paraphernalia.
 
     People's Republic of China:  Chinese officials recently raided a factory
 in Shenzhen and seized 2,600 pieces of high-quality counterfeit software,
 together with loose counterfeit manuals and related documentation. In a
 separate raid of a Shenzhen warehouse, Technical Supervision Bureau officials
 discovered and seized over 5,000 counterfeit Microsoft keyboards.
 
     Singapore:  In February 2001, after hours of surveillance, the
 Intellectual Property Rights Branch of the Singapore police arrested the owner
 of a van and seized its contents of approximately 20,000 pieces of counterfeit
 CDs. Singapore police then identified the suspect in the raid as a syndicate
 leader. Later that same day, the police raided a retail shop at Toa Payoh
 Central owned by the suspect and detained three other syndicate members. Later
 in the month, Singapore police raided a retail outlet in Queensway Shopping
 Center and found it to be linked to the same syndicate. That raid resulted in
 the arrest of two additional syndicate members and a seizure of
 10,000 counterfeit CDs consisting of counterfeit product of the Business
 Software Alliance's member companies, including Microsoft, Interactive Digital
 Software Association, Singapore Phonogram & Videogram Association and Sony
 Computer Entertainment.
 
     Singapore:  On Feb. 7, 2001, the Intellectual Property Rights Branch of
 the Singapore police raided a makeshift stall outside Sim Lim Square.
 Inspection of the seizure confirmed 147 pieces of the CDs that were seized
 contained infringing Business Software Alliance member programs. The raid was
 a follow-up to police actions focused on tackling counterfeit CD rings
 operated by illegal syndicates.
 
     Taiwan:  The Police Administration of Taiwan conducted a national Internet
 piracy sweep from late December 2000 through early January 2001 to crack down
 on optical disc piracy and pornography and to protect copyrights in
 cyberspace.
     Prosecutor's offices issued 241 search warrants, targeted 189 illegal Web
 sites offering pirated optical discs and child pornography and detained
 237 defendants. More than a half-million pieces of illegal CD-ROMs and CD-Rs
 from 142 Web sites were seized.
 
     Thailand:  On March 15-17, 2001, police officers from the Economic Crime
 Investigation Division raided two outlets located in Pantip Plaza and
 Mahboonkrong Shopping Center for distribution of counterfeit CD-ROMs. The
 raids resulted in the seizure of 17,000 pirated CDs and CD-ROMs. Three
 shopkeepers were arrested and charged with copyright infringement.
 
     Europe Criminal Actions
     United Kingdom:  Late last month, a London jury convicted a criminal ring
 responsible for a multimillion-dollar international counterfeiting racket. The
 gang specialized in trading counterfeit Microsoft software internationally and
 is suspected to have sold millions of pounds worth of counterfeit software.
 The racketeers, who relied on various hard-core criminal tactics, bundled
 counterfeit disks imported from Asia with genuine Certificate of Authenticity
 labels obtained in the armed robbery of a Scottish printing factory.
     In November 2000, as part of its global "Operation Bidder Beware" sweep,
 the Business Software Alliance filed and served three sets of legal
 proceedings in the United Kingdom against suspected suppliers of counterfeit
 software. Those suppliers were using the auction site http://www.qxl.com/ to
 advertise their products for sale and are believed to have sold numerous
 copies of counterfeit software through the auction site.
 
     Germany:  In March 2001, Microsoft sent 30 cease-and-desist letters to
 targets that sold counterfeited software or burned CD-Rs on auction sites,
 including IEZ Auktionen, offerto.de, Ricardo.de.
     In November 2000, a software pirate near Frankfurt sold illegal software
 to a police officer. The police raided the target's home and seized six PCs,
 10 burners and approximately 1,000 gold CD-Rs. The target was arrested.
     Since January 2001, Microsoft has filed five criminal complaints against
 additional targets that have allegedly sold counterfeited software or burned
 CD-Rs through auction sites in Germany.
 
     Hungary:  In October 2000, law enforcement officers raided an alleged
 counterfeiter who distributed BSA member company software products over the
 Internet. During the raid the police seized CDs containing software
 applications from Adobe, Autodesk, Corel, Microsoft, Symantec and other
 products. This case led to the police conducting a raid of another pirate's
 operation where they seized more than 1,000 CDs containing various software
 publishers' software.
     In November 2000, law enforcement officers raided an alleged counterfeiter
 in Hodmezovasarhely who published a software program list on the Internet. The
 police seized nearly 10,000 compilation CDs with illegally copied software
 products. Damages are estimated at approximately $16,000 U.S.
 
     Poland:  In November 2000, law enforcement officers, with the assistance
 of the Business Software Alliance, raided the home of an individual in Poznan,
 who was allegedly distributing software over http://www.cdzone.prv.pl/ .
     In November 2000, a district court in Wroclaw found a software pirate
 guilty of selling illegal copies of Business Software Alliance member company
 software products over the Internet. The accused was ordered to pay a fine and
 court fees.  This is the first judicial decision against an Internet software
 pirate in Poland.
 
     Romania:  In October 2000, Sibiu police raided the home of an individual,
 Manea Bogdan, who was allegedly distributing illegal software over the
 Internet using three different sites, including
 http://www.megaone.com/oferta/ . The police found approximately 350 illegal
 CDs containing Adobe, Autodesk, Corel, Microsoft and Symantec programs. They
 also found illegal software on the defendant's computers as well as a list of
 the defendant's customers.
 
     Latin America Criminal Actions
     Argentina:  On Nov. 23, 2000 at the request of the Argentinean local
 software association (Software Legal) and the music industry's anti-piracy
 association, judicial authorities and the federal police in Buenos Aires
 raided the home offices of six resellers who were suspected of offering
 counterfeit Business Software Alliance member software, including Microsoft
 programs and music CDs, over the Internet. These resellers used Internet
 advertising to help market and sell the unauthorized products through SPAM
 e-mail and various Web pages. The raids conducted by the federal police
 yielded more than 6,000 unauthorized copies of music and software and several
 PCs and CD-burners. Five people were arrested in connection with the raid.
 
     Argentina:  On Jan. 16, 2001, the Anti-Fraud Division of the Argentinean
 police raided GRG Computacion, a reseller from Buenos Aires who was offering
 allegedly unlicensed software product via the Internet. During the raid, law
 enforcement authorities seized four PCs that were hard-disk loaded with
 unauthorized copies of software, as well as 20 CDs containing unlicensed
 copies of Microsoft products and other Business Software Alliance member
 companies' software.
 
     Brazil:  On Jan. 2, 2001, Brazilian authorities performed a civil
 inspection of a reseller who was offering unlicensed software via the
 Internet. The reseller, who was located in Sao Paulo state, was offering
 computers with unlicensed software products through his Web site
 http://www.curriculum.com.br/ . Ultimately, the court audited 78 computers.
 
     Brazil:  On Feb. 13, 2001, Microsoft and the Specialized Police Department
 in Computer Crimes from Minas Gerais state conducted a police raid against an
 Internet company called Mega CD. This company was offering unlicensed copies
 of software through the Internet. The police officers seized four duplicators,
 2,165 CDs with Microsoft software and 450 unused CDs. Two employees were
 arrested in the raid.
 
     Colombia:  After 10 days of surveillance, DAS (Colombia intellectual
 property police) raided the home of an Internet reseller in Bogota, on Dec.
 14, 2000. The reseller sold unauthorized copies of software products through a
 popular auction site called MercadoLibre.com. As a result of the raid,
 authorities seized 500 unauthorized software CDs, one PC, a CD burner and six
 catalogs listing software programs. New invoices for more than 20,000 copies
 of unlicensed software products were also confiscated. Law enforcement
 authorities believe that the software piracy operation, which allegedly sold
 pirated copies of Microsoft, Adobe, AutoDesk and Corel software, had been in
 operation for a number of years. The reseller was taken into custody by
 enforcement authorities.
 
     Peru:  On March 1, 2001, the Public Ministry arrested an Internet reseller
 who was offering unlicensed copies of software through the Internet. The
 authorities raided the reseller's home in Lima where he ran
 http://www.clubdelsoftware.com/ . Authorities found and seized 143 CDs
 containing unauthorized copies of Microsoft Office 97, Office 2000, Windows
 95, Windows 98 and Adobe software. They also seized 27 compilation CDs, eight
 CDs with movies, one PC and lists of the products he advertised.
 
     Venezuela:  On March 1, 2001, Venezuelan authorities raided the premises
 of Red Maniaco, an Internet company that was offering unlicensed copies of
 software through the Web site http://www.free20000@cantv.net/ .
 
     NOTE:  Microsoft, Windows and Windows NT are either registered trademarks
 or trademarks of Microsoft Corp. in the United States and/or other countries.
 The names of actual companies and products mentioned herein may be the
 trademarks of their respective owners.
 
 SOURCE  Microsoft Corp.

RELATED LINKS

http://www.microsoft.com