Microsoft Uncovers Large-Scale Counterfeit Software Ring Across US

Strategic Insights -

Microsoft Corporation announced a series of police raids in several states, uncovering a vast amount of counterfeit software worth over $2 million. The raids, which spanned from February to March, targeted multiple businesses across the US, disrupting a large-scale counterfeit software distribution ring. The seized counterfeit products included MS-DOS and Windows operating systems, Bookshelf CD-ROM reference library, and Works, with over 13,000 packages confiscated. Microsoft has filed copyright infringement lawsuits against the implicated businesses and individuals, with additional investigations underway.

Key Takeaways:

  • Over 13,000 counterfeit packages and numerous components were seized across the US, valued at more than $2 million.
  • The raids targeted businesses in California, Georgia, Louisiana, Maryland, Texas, and Virginia, with a large-scale distribution ring operating across the US.
  • Counterfeit operating system software lacked anti-counterfeiting security features, including version-specific holograms, 3M Confirm labels, and the Microsoft Certificate of Authenticity.
  • Microsoft has filed copyright infringement lawsuits against all the businesses listed above and their principals, with all cases pending.
  • Additional investigations are underway against businesses and individuals in multiple states, with Microsoft anticipating further raids and seizures in the near future.

Statistics:

  • Over 13,000 counterfeit packages seized across the US.
  • Estimated total street value of the seized counterfeit software: over $2 million.
  • Number of states involved in the operation: 8 (California, Florida, Georgia, Illinois, Louisiana, Maryland, New York, Texas).
  • Number of businesses raided: 16 (Grey Computer, Inc., Advanced Business Concepts, Inc., Direct Wholesale, Alpha Data Research, A-Technology, Hypertec USA, L.A. Magnatech, Zesta Computer, Bristone, Micro Equipment Corporation, Sulaco Communications, Inc., Tek-Shop).
  • Number of individualsand businesses implicated: 32 (all businesses listed and their principals).

Sources:

  • Microsoft Corporation press release (no specific date mentioned).
  • Anne Murphy, corporate attorney at Microsoft, quoted in the press release.