Posted By: Janine Delacroix

Tue Oct 31, 11:49 AM ET

NEW YORK (AFP) - Microsoft Corp. launched its biggest-ever legal pursuit of alleged fraudsters selling fake software online, ahead of the January release of its latest operating system.
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The maker of the Windows operating system used on more than 90 percent of personal computers said it was going after 55 sellers hawking counterfeit versions of its software on Internet vendors such as eBay.

The legal actions include 15 in the United States, 10 in Germany, 10 in the Netherlands, five in France and five in Britain, as well as proceedings in Argentina, Australia, Belgium, Mexico, Poland and South Korea.

Matt Lundy, Microsoft's chief anti-piracy lawyer, said counterfeit software was "defective and dangerous" as it opens the door to serious security breaches including identity theft.

"It is simply not worth putting your personal and confidential information at risk to save a few dollars on software; it can cost much more in the long run," he said in a statement.

"For our part, Microsoft is committed to taking the necessary legal action to protect consumers worldwide from the dangers of counterfeit software."

Microsoft said that many of the defendants had previously received warnings, including written "cease and desist" orders along with removal of their auctions by the online host.

"In each case subsequent investigation and/or test purchases revealed copyright and trademark infringement by the defendant seller," the world's biggest software company said.

Many of the defendants were identified through tips submitted from consumers using Microsoft's "Windows Genuine Advantage" program, which verifies whether a user's software is genuine and so open to free upgrades.

Most of the lawsuits target alleged rip-offs of the Windows XP operating system or the Office suite of programs. One defendant near the German city of Hamburg is accused of selling more than 2,000 fake products on eBay.

At least three of the lawsuits in Belgium and the Netherlands concern pirated versions of the long-awaited successor to XP, called Vista, which does not even go on general sale to the public until January.

With every Microsoft release, copyright pirates have been quick to offer fake versions at knock-down prices. And fraudsters' distribution channels have opened up with the advent of websites such as eBay.

According to a new Microsoft-sponsored study by computing trends research group IDC, more than half the Microsoft software sold on eBay is dodgy.

A total of 39 percent was found to be counterfeit, while another 12 percent contained software that was either counterfeit or had been tampered with.

As a result, Microsoft has stepped up its monitoring of eBay auctions and now intervenes in about 50,000 a year that are deemed to be infringing its copyright.

Fake software makes users vulnerable to viruses, worms and other damaging code, including spyware and Trojan horses, the study said.

IDC estimated that the cost for an organisation to recover from just one incident of malicious software on a single computer could run to more than 1,000 dollars.

"It is more important than ever for users to educate themselves about these dangers," IDC senior vice president John Gantz said in the Microsoft statement.

"Our findings underscore the simple fact that there are real costs in the form of increased risks to security and personal data that can easily outweigh any perceived savings from using counterfeit software," he said.

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