No summer holiday for Microsoft as it turns up the heat on rogue traders

Latest crackdown reveals buyers must be wary of higher levels of illegal and counterfeit

software

Reading, UK, 6 November 2008: Today, Microsoft announced successful settlements with nine UK based

computer retailers. Each retailer has admitted to selling unlicensed software* to customers, who are put

at risk when they unwittingly buy illegal computer programs.

This highlights that the illegal software trade is a big issue for consumers. Microsoft’s aims are to protect

its customers, who are vulnerable to computer viruses and identity theft when they use this software,

and to support genuine businesses whose livelihood is endangered by unscrupulous traders.

Newham business admitted to selling illegal software

Newham based TGSS Computers Ltd faced court action and admitted to involvement in unlawful activity

including the sale of unlicensed software and hard disk loading*. Encouragingly, the business is now

committed to working more closely with Microsoft so that it stops selling illegal computer programs and

ensures staff know how to sell software correctly.

A spokesperson from TGSS Computers Ltd said, “As a new small business, our profit margins are pretty

tight. The credit crunch has made things a lot tougher for everyone. We recognise we haven’t been

installing Microsoft software correctly and that’s something we want to put right. We certainly won’t be

making mistakes like these again - and we’ll be working with Microsoft over the next few weeks to make

sure what we do falls within their software rules. Getting it right matters to our customers – the

lifeblood of a local business like ours – so it’s important to us.”

In a further eight separate cases; the following computer businesses have each faced court action and

admitted to selling software illegally:

• KC Computers Ltd (St Leonards-on-Sea, East Sussex)

• WX Electronics (London) Ltd

• Mesh Internet Ltd (Chorley, Lancashire)

• Data Recovery Lab t/a Computer Doctor Ltd (Barnet, London )

• Mike-O-Soft (Swansea)

• Atlas Computer Centre Ltd (Lewisham, London)

• Communikom IT Services Ltd (Hatton Park, Warwickshire)

• Radicl Multimedia Ltd (Barnet, London)

“Using pirated software opens consumers up to dangers such as computer viruses and identity theft,

and also impacts the livelihood of genuine computer shops. Both are the innocent victims in the trade of

counterfeit and illegal software,” said Graham Arthur, Anti-Piracy Attorney at Microsoft UK. “Microsoft

has a duty to protect consumers and also to look out for genuine businesses, who are working hard and

trading honestly, but yet are being left out of pocket by those who attempt to dupe consumers by acting

illegally.”

“We also have to deal with the added strain the current economic climate puts on businesses,” warned

Arthur. “The credit crunch may lead to some computer shops resorting to illegal measures to keep

profits up and remain competitive. It’s clear from cases such as TGSS Computers that retailers are under

pressure in these tough financial times.”

“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,” continued Arthur. “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. Because of this, it’s 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.”

“It’s vital we don’t rest on our laurels in reducing piracy,” added Arthur. “There’s still a long way to go if

we are to meet our goal of significantly reducing the amount of counterfeit and illegal software

currently on offer to our customers, and we now need to build on the progress we’ve made so far.”

Newham Trading Standards 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 Newham Trading Standards.

As Andrew Baikie, Newham’s Executive Member for Public Protection, commented: "Consumer

protection is one of the borough’s key priorities. We work to ensure customers are given a fair deal and

aren’t being ripped off when they buy goods or services. Today’s news shows the dangers that

consumers face by using illegal software and it’s good to see that consumer protection is important to

major companies like Microsoft."

=ENDS=

Notes to Editor

* Definitions

Unlicensed software

Unlicensed software is a common type of piracy. It happens when individuals and businesses make copies of

software without a licence to do so.

Sometimes an organisation will install software on more computers than its licences allow. Aside from the financial

harm this causes, it puts users at risk because they are using software without a licence.

Hard disk loading

Hard disk loading normally happens when builders of computer systems sell PCs with unlicensed software pre-

installed. These dealers use one copy of a software program but install it illegally on many machines. The original

disks and the documents that should come with the PC are often missing, incomplete, or counterfeit.

More information on software piracy and illegal traders in the UK is available at:

http://www.microsoft.com/uk/licensing/homeuser/illegal-traders.mspx