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.

St Leonards-On-Sea business admitted to selling illegal software

St Leonards-On-Sea based KC 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.

Kim Callow from KC Computers Ltd 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.”

“After this came to light, we held a thorough internal investigation and found that the problem lay with

one of our employees,” added Callow. “All our staff will now be given special training to ensure no-one

at KC Computers Ltd makes the same mistake again. It’s good to see Microsoft working with small

computer shops like ours to make sure 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.”

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

admitted to selling software illegally:

• TGSS Computers Ltd (London)

• Mesh Internet Ltd (Chorley, Lancashire)

• WX Electronics (London) Ltd

• Mike-O-Soft (Swansea)

• Atlas Computer Centre Ltd (Lewisham, London)

• Communikom IT Services Ltd (Hatton Park, Warwickshire)

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

• 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.”

“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.”

Sussex Enterprise 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 Sussex Enterprise, the county’s Chamber of Commerce.

As Mark Froud, Chief Executive of Sussex Enterprise commented: “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

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