Dramatic Legal Action Against Online Software Pirates

Law enforcement agencies, in cooperation with the Software & Information Industry Association (SIIA), have made a significant move against two individuals accused of running a massive counterfeiting operation, selling discounted counterfeit software to unsuspecting consumers through various websites and e-commerce platforms. The pair, Christopher Loring Walters and Matthew Thomas Purse, allegedly created and operated multiple websites, including SoftwareDiner.com, and advertised themselves as authorized distributors of popular software brands. The indictment, unsealed on January 30, 2009, charges the duo with conspiracy, mail and wire fraud, and other crimes, potentially carrying maximum sentences of 20 years in prison and $250,000 fines.

Key Takeaways:

• Walters and Purse allegedly operated multiple websites and advertised themselves as authorized distributors of popular software brands.
• The pair created and sold discounted counterfeit software, including products from Acronis, Apple, Corel, Intuit, McAfee, and Symantec, collectively losing millions of dollars.
• They established bank accounts and credit card processing accounts to process victim credit card purchases and purchased legitimate software to create counterfeit copies.
• Walters and Purse also acquired software duplicating equipment to mass produce and label counterfeit copies.
• The indictment alleges Conspiracy, Mail and Wire Fraud, Criminal Copyright Infringement, and Trafficking in Counterfeit Labels, Packaging or Containers.
• The case marks a significant move against software piracy, with SIIA's CEO Keith Kupferschmid stating that "the current case is an important marker in the fight against software piracy."
• Walters and Purse each face a maximum of 20 years in prison and $250,000 fines for mail and wire fraud charges.
• Conviction for Criminal Copyright Infringement carries a maximum five-year sentence per count, with a fine of up to $250,000.

Statistics:

• 19-count federal indictment was unsealed on January 30, 2009.
• Pair allegedly sold discounted counterfeit software from September 2004 through February 2006.
• Estimated retail prices of the software counterfeited collectively totaled millions of dollars.
• Walters and Purse established multiple websites, including SoftwareDiner.com.
• They claimed to be authorized distributors of 17 major software brands.

Sources:

• SIIA (Software & Information Industry Association)
• Department of Justice (DOJ)
• Office of the U.S. Postal Inspector
• Computer Weekly News
• VerticalNews.com