Microsoft Australia Announces Results of its Latest Anti-Piracy Actions
Sydney, Australia – 21 October, 2008 – Microsoft Corp. today announced "Global Anti-Piracy Awareness Day," a simultaneous launch of local and international education initiatives and enforcement actions in 49 countries on six continents to combat the sophisticated, illegal trade of pirated and counterfeit software. The programs announced today include intellectual property awareness campaigns, engagement with partner businesses, educational forums, local law enforcement training and new legal actions against alleged software counterfeiters and pirates.
On October 14th, Microsoft Australia filed proceedings in the Federal Magistrates Court for copyright infringement against three individuals trading online. This was a result of Microsoft’s new enforcement initiative designed to target online counterfeit sales. Microsoft’s actions are aimed at reducing the impact of the growing trend of high-quality counterfeit products being sold directly to unsuspecting consumers online.
In addition to Microsoft’s targeted online actions, the company is also announcing the results of its latest blitz, which involved the review of more than 400 IT businesses and netted three South Australian resellers offering pirated software. Proceedings were filed in the Federal Magistrates Court against two of these businesses, while Microsoft reached a settlement with the third on October 13th. Please see below for full details on the previously mentioned filings and settlements.
Aside from enforcement actions, Microsoft also works to raise awareness with affected industry bodies, such as the Business Software Alliance (BSA), to achieve a coordinated and holistic approach to the protection of intellectual property.
"Software piracy and counterfeiting is a global trade and Microsoft is committed to working with others around the world to stay a step ahead of this criminal industry. Fighting piracy is about protecting consumers who think they are buying legitimate software, as well protecting the interests of legitimate IT businesses," said Ms Vanessa Hutley, Director, Intellectual Property, Microsoft Australia.
"Australian innovation and creative industries rely on the protection of intellectual property rights and this issue not only affects specific industries, but the Australian economy as a whole. It has been estimated that a reduction in piracy by 10 per cent over the next four years would generate an additional 3,929 jobs in Australia. According to a recent IDC Piracy Impact Study 2008, the reduction would result in AU$1.9 billion in local industry revenue and AU$4.3 billion in additional GDP," Ms Hutley said.
Microsoft’s latest blitz follows a similar investigation earlier in the year, which netted 21 infringements. Ms Hutley said it was heartening to see the number of infringing re-sellers decrease during the recent blitz.
"We are encouraged by the proportionally small number of businesses contacted who were prepared to offer pirated software. We will continue to monitor the channel to ensure this encouraging downward trend is maintained. The results show that our blitz strategy has assisted the local channel to even up the playing field," Ms Hutley said.
In addition to working with affected industry players, Microsoft also undertakes training of customs officers and state and federal police to assist them in the detection of counterfeit software.
The Australian Federal Police's manager of special operations, Ray Johnson, said IP crime was not a victimless crime. The manufacture, distribution and sale of copied goods causes job losses, harms the economy, funds other serious organised crime and affects the commercial viability of legitimate businesses.
"Counterfeiting and piracy steals someone else's creativity, investment, planning and effort," Commander Johnson said. "Intellectual property is just as valuable as physical property and, unlike much of what might be stolen in a burglary, you can't replace stolen ideas. Although it's a crime, fake goods seem to be widely acceptable, compared with stolen goods. The primary focus for the Australian Federal Police (AFP) is investigating and prosecuting producers, organisers and distributers of offending products."
Globally, more than one third of PCs around the world are unlicensed or contain pirated or counterfeit software. According to the 5th Annual Business Software Alliance and IDC Global Software Piracy Study, the losses inflicted on legitimate businesses by widespread software piracy are very significant – in 2007, the global economic loss was estimated at nearly $50 billion. By addressing this illegal activity, Microsoft is helping to level the playing field for legitimate dealers who are harmed when illegal sales cut into their business, and ensuring that consumers receive the full value of licensed, genuine Microsoft products.
"Piracy is a big issue because it affects the bottom line of thousands of businesses across Australia. Software resellers and consumers are the biggest victims here, because resellers who offer genuine product and software support cannot compete with discounted prices offered by pirates. This may result in significant loss of revenue for distribution partners," said Ms Clare Wharrier, Co-Chair, Business Software Alliance Australia.
"Collaboration between public and private sector organisations, including enforcement bodies and business groups, is the most effective way to tackle these issues," Ms Wharrier said.