Microsoft Continues its Anti-Piracy Efforts: Reaches Legal Settlements with Eight Ontario System Builders


Lisa Libin
High Road Communications
(416) 644-2237
llibin@highroad.com

Consent judgments obtained against these businesses restrict the distribution of unlicensed Microsoft software

MISSISSAUGA, ON - October 25 2006 - As part of an ongoing effort to help reduce software piracy and protect Canadian consumers and resellers, Microsoft Canada Co. is announcing that Microsoft Corporation commenced litigation and settled lawsuits in the Federal Court of Canada against eight system builders in Ontario. The lawsuits alleged that the businesses were hard-disk loading Microsoft® software onto PCs and selling them without the CD-ROMs and other components that come with genuine licensed Microsoft software.

As part of the settlements, consent judgments were obtained against the businesses restraining them from distributing unlicensed Microsoft software and from infringing Microsoft's copyrights and other intellectual property rights. The eight Ontario businesses against which judgments on consent were obtained include: Dixie Computer (Mississauga, Ontario); ITPC Computers (North York, Ontario); Kel Computers Corp. (Ottawa, Ontario); Kit Computers (Markham, Ontario); Morcor Computers 2000 Ltd. (St. Catharines, Ontario); OTA Enterprises Inc. (Toronto, Ontario); Peach Microsystems (Ottawa, Ontario) and Trans Computer Inc. (Ottawa, Ontario).

"The channel is losing revenue because of pirated software. It is great to see that Microsoft's education and enforcement approach is helping to level the playing field," said Frankie Wong, President, Elco Systems Canada.

The lawsuits were initiated between August 2005 and February 2006 and resulted in judgments issued between April 2006 and August 2006. Prior to taking legal action, Microsoft's counsel sent cease and desist letters to each of the businesses in question to notify them of the consequences of hard-disk loading and to request a cessation of the illegal practice. The programs alleged to have been hard-disk loaded in these matters include Microsoft Windows® XP Home Edition, Microsoft Windows XP Professional Edition, Microsoft Office 2000 Premium, Microsoft Office XP Professional, Microsoft Office XP Professional with FrontPage® and Microsoft Office Professional Edition 2003.

"Microsoft is working hard to ensure the integrity of the software marketplace," said Susan Harper, Anti-Piracy Manager, Microsoft Canada Co. "By taking appropriate legal action Microsoft is helping to protect consumers and resellers from the deceptive practices of hard-disk loading, while also protecting Microsoft's intellectual property."

Microsoft's legal action is part of a broader program - the Genuine Software Initiative (GSI). The GSI program is designed to protect Microsoft's intellectual property and focuses the company's resources on educating customers and resellers about the risks of unlicensed software, engineering products to protect its IP and working with law enforcement agencies and government officials around the world to take action against software counterfeiters.

About Microsoft Canada
Established in 1985, Microsoft Canada Co. is the Canadian subsidiary of Microsoft Corporation (Nasdaq "MSFT") the worldwide leader in software, services and Internet technologies for personal and business computing. Microsoft Canada provides nationwide sales, marketing, consulting and local support services in both French and English. Microsoft Canada is headquartered in Mississauga, Ontario with MSN.CA offices located in Toronto, and eight regional offices across the country dedicated to empowering people through great software - any time, any place and on any device. Visit Microsoft Canada's Web site at www.microsoft.ca

©2006 Microsoft Corporation. Microsoft is either a registered trademark or trademark of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

©2006 Microsoft Corporation. Microsoft, FrontPage and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.


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