Ignoring software piracy becomes increasingly unaffordable as more and more UK firms feel the pinch of the downturn
Microsoft increases efforts against illegal traders and warns that unfair competition may mean the difference between survival or going bust
Reading, UK - April 2009 - Microsoft today announced settlements with 12 traders caught selling illegal software across the UK, highlighting its ongoing commitment to protect the livelihoods of honest resellers.
Settlements have successfully been reached with the following 12 resellers, who all admitted to hard disk loading1 and selling software illegally:
| • | 1Hr Computers, Denton, Manchester |
| • | Annecto Computers Ltd, Droylsden, Manchester |
| • | Boss Systems, Duns, Berwickshire |
| • | Charisma Computers, Manchester |
| • | Computer Warehouse (Manchester) Ltd, Manchester |
| • | Comp-u-Tel, Thatcham, Berkshire |
| • | Hi-Tec, Cheadle, Cheshire |
| • | ICN Computers Ltd, Newbury, Berkshire |
| • | Intellect Computers (Whitefield ) Ltd, Whitefield, Manchester |
| • | PWRTech Ltd, Nottingham |
| • | Swift Computers, Wellington, Shropshire |
| • | Unique Computers (UK) Ltd, Leicester |
Since January 2008, Microsoft has taken action against 92 hard disk loaders, and believes many resellers underestimate the scale of the problem and the detrimental effect this type of illegal trading has on honest channel businesses. Microsoft’s strategy is focused on education, as well as on enforcement, whether that involves highlighting the need for resellers to join the fight against piracy or helping hard disk loaders to “get legal”.
“Historically, many in the channel have seen piracy as a relatively low priority - an irritation that could be ignored or put up with as long as business was good,” said Scott Dodds, General Manager of Small, Medium Enterprises and Partners Group, Microsoft UK. “However, at a time when the Federation of Small Business claims 120 businesses a day are going bust2, Microsoft is working hard to stamp out unfair competition that puts pressure on resellers’ margins, and also threatens to drive them out of business.” As 80% of Microsoft’s registered partners are small businesses with fewer than 10 employees, the software vendor is intensifying efforts to tackle illegal traders and to raise awareness of piracy as a genuinely serious threat to the channel. Scott Dodds continued, “Most resellers can’t afford to live with even small losses to illegal traders, who will almost certainly be undercutting them.”
Mr Murphy from 1Hr Computers said, “We recognise that we weren’t installing Microsoft software correctly, and that’s something we take seriously. We’ll be working with Microsoft over the next few weeks to make sure what we do falls within their software rules from now on. It’s good to see Microsoft working with small computer traders like us to ensure we’re up to speed on the right way to use and sell their software. Getting it right is important to us and to our customers - the lifeblood of a business like ours.” Resellers that have been through this process, and have worked closely with Microsoft to ensure they know how to sell software in a legitimate way, are often surprisingly positive about the experience, and the long-term effect on their business.
Robert Rouse, Red House Computers commented, “We have been working meticulously to improve our licensing knowledge with a strong focus internally on education and training. This new expertise has helped me to increase sales and put my business on a much firmer footing. After two face-to-face visits from Microsoft licensing specialists, I now look at their products in terms of how they can help me drive revenue, for example using Office Ready PC3.
“Following the case and the visits, I’ve seen an uplift of 30 - 40% in Office sales. When customers come to me with unlicensed software on their PCs, I see an opportunity to help them get genuine and drive sales for my business too. Since working alongside Microsoft I am more confident and feel I can now talk to my customers from a position of strength.”
“Everyone in the channel, from distributors down to local computer shops, needs to move piracy up their agenda,” said Graham Arthur, anti-piracy attorney at Microsoft UK. “If partners see suspicious buying patterns, or `too good to be true´ prices, they should tell us and we will investigate and act swiftly and decisively to defend the livelihoods of our reputable partners.”
“Microsoft will always work to maintain a level playing field, but we will be more successful with a channel that’s 100% committed to do the same. Our experience of the scale of the problem suggests piracy could be a make or break issue for some resellers and we are sure that most could not afford to ignore the issue and lose revenue to those cheating the system.”
Partners can report piracy to Microsoft here.
A list of illegal traders that Microsoft has taken legal action against in the UK can be found here.
1. | Hard disk loading normally happens when builders of computer systems sell PCs with unlicensed software pre-installed. These dealers use one copy of a software program but install it illegally on many machines. The original discs and the documents that should come with the PC are often missing or incomplete. If they are supplied, they frequently turn out to be counterfeit. |
2. | Figure quoted in Federation of Small Business press release from March 2009. |
3. | More information about Office Ready PC can be found here. |
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For further information about this press release, please contact:
Simon Johns
Inferno Communications
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simon.johns@infernopr.com
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