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Information management

Microsoft Fights Back Against Counterfeit Software with Voluntary Reports and Global Enforcement Actions

Strategic Insights

— 2 min read

Microsoft Corporation has reported a significant surge in voluntary reports of counterfeit software, with over 150,000 cases in the past two years, more than double the previous record. This increase reflects growing concern about the harm caused by counterfeit software and Microsoft's efforts to give people a voice in the fight against software counterfeiting. As part of its Consumer Action Day, Microsoft is launching educational initiatives and enforcement actions in over 70 countries to protect consumers and increase awareness of the risks of counterfeit software.

Key Takeaways:

  • Over 150,000 voluntary reports of counterfeit software have been submitted to Microsoft in the past two years, more than double the previous record.
  • Microsoft's Consumer Action Day includes educational initiatives and enforcement actions in over 70 countries to protect consumers and increase awareness of the risks of counterfeit software.
  • Counterfeit software often contains viruses, malware, or malicious code, posing a significant risk to consumers' personal information, identities, and financial security.
  • The software industry has long studied the black market for pirated software and its effects on consumers, with one study showing that one in four websites offering counterfeit software attempted to install unwanted or malicious code upon downloading.
  • Media Surveillance found that 32 percent of pirated copies of Windows and hacks contained malicious code.
  • A 2006 IDC white paper described a review of counterfeit Microsoft software purchased at resellers in 17 countries, which found that over 50 percent of the discs contained phony code, had malware, or could not be installed.
  • The BSA October 2009 Internet Piracy Study showed that countries with high piracy rates often have high malware infection rates.
  • Microsoft is enhancing its anti-piracy work on all three fronts: education, engineering, and enforcement to address the increasing sophistication of software counterfeiters.

Statistics:

  • Over 150,000 voluntary reports of counterfeit software have been submitted to Microsoft in the past two years.
  • 32 percent of pirated copies of Windows and hacks contained malicious code (Media Surveillance).
  • Over 50 percent of counterfeit Microsoft software purchased at resellers in 17 countries contained phony code, had malware, or could not be installed (IDC white paper).
  • Countries with high piracy rates often have high malware infection rates (BSA October 2009 Internet Piracy Study).
  • 73 percent of companies using unlicensed or counterfeit software were 73 percent more likely to experience the loss or damage of sensitive data and 73 percent more likely to have critical computer failures lasting 24 hours or more (Harrison Group Inc. study).

Sources:

(1) IDC 2006 white paper: "IDC Anti-Piracy Study"

(2) BSA October 2009 Internet Piracy Study

(3) Harrison Group Inc. study: "The Economic Impact of Counterfeit Software on Small and Midsize Businesses"

Microsoft Corporation press release: "Microsoft Fights Back Against Counterfeit Software with Voluntary Reports and Global Enforcement Actions"

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