Microsoft Legal Action Continues to Combat Software Piracy
Commences Three Lawsuits in Canada against System Builders in Ontario and Nova Scotia
MISSISSAUGA, ON – January 24 - In its continued effort to help protect Canadian consumers and businesses from software piracy, Microsoft Canada Co. announced today that Microsoft Corporation has commenced litigation in the Federal Court of Canada against three system builders in Ontario and Nova Scotia. In each case, the lawsuits allege copyright and trade-mark infringement and seek injunctive relief, an accounting of the defendants’ profits, or in the case of the copyright allegations, instead of an accounting of the defendants’ profits, statutory damages ranging from $140,000 to $160,000, punitive and exemplary damages, as well as declaratory relief.
The lawsuits were filed between September 2007 and December 2007. The software alleged to have been hard disk loaded in these matters including Microsoft® WindowsÒ XP Home operating system, Microsoft Windows XP Professional and Microsoft Office Professional Edition 2003. Hard disk loading is when unlicensed software is installed on a computer and the necessary components (i.e. CD-ROM and Certificate of Authenticity) are not provided to the end user.
“Today’s lawsuits are meant to send a message to people who distribute software through hard disk loading and educate Canadian resellers about illegal hard disk loading and what the pitfalls can be,” explains Michael Hilliard, Corporate Counsel, Microsoft Canada. “We're letting the Canadian channel know we have a program that identifies pirated software and we're prepared to take action. Education and enforcement are key to helping to reduce piracy in Canada.”
As part of Microsoft’s ongoing enforcement efforts, undercover investigators periodically visit a number of computer stores throughout Canada, sometimes unbeknownst to the reseller, to ensure software is not being illegally distributed and that computers are being sold with licensed software Microsoft also regularly follows up on reports of alleged infringing activity that are made to the Microsoft Anti-Piracy Hotline at 1-800-RU-LEGIT or by e-mail to piracy@microsoft.com.
The impact of software piracy affects the entire industry. Canada’s software piracy rate increased one percentage point from 33 per cent in 2005 to 34 per cent in 2006, slightly below the worldwide piracy rate, which remained stable at 35 per cent. Canada’s piracy rate is higher than that of the United States and it’s estimated that one-third of PC software in use in Canada in 2006 was obtained illegally (BSA, May 15, 2007). Microsoft Corporation takes a three-pronged approach to dealing with software piracy, which includes 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.
“We are pleased to see Microsoft’s continued efforts to create a level playing field for resellers in Canada,” says Frankie Wong, president of Elco Systems. “These legal actions play a key role in protecting Canadian businesses and consumers in an ongoing issue that industry leaders like Microsoft continues to lead to resolve.”
In an effort to help end-users identify genuine licensed software, Microsoft offers the following guidance:
| • | When buying a new PC, ensure that the Microsoft software comes with the Certificate of Authenticity (COA) and a holographic edge-to-edge CD-ROM(s). |
| • | Never acquire a standalone COA label – a COA label is not a license to use the software. |
| • | Verify that Microsoft software is genuine through Microsoft’s Windows Genuine Advantage program: www.microsoft.com/genuine/. |
| • | To report piracy of Microsoft software or to inquire about whether certain items are legitimate, call the Microsoft Anti-Piracy Hotline at 1-800-RU-LEGIT or email piracy@microsoft.com. |
For additional information on piracy, visit the Microsoft Canada Anti-piracy Web site located at http://www.microsoft.com/canada/piracy/.
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 solutions that help people and businesses realize their full potential. Microsoft Canada provides nationwide sales, marketing, consulting and local support services in both French and English. Headquartered in Mississauga, Microsoft Canada has 10 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.
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