Microsoft acts to protect customers with continuing clampdown on rogue traders

Buyers urged to stay one step ahead of software pirates by knowing how to spot sophisticated counterfeit

Reading, UK - August 2009 - Microsoft today announced settlements with 11 computer retailers caught selling illegal software to unsuspecting customers across the UK over the last six months. The software supplier is urging customers to be vigilant when it comes to buying computer programs, advising that it often pays to make a few simple checks before handing over their hard-earned cash or company credit card.

The 11 traders all faced court action and admitted to selling illegal software and hard disk loading1. Microsoft is committed to educating traders as well as end users, and encouragingly all the retailers involved have now agreed to work closely with the software company to ensure they stop selling unlicensed programs.

Ms Christine Throup from PC Support in Worcester 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.”

Microsoft has taken legal action against more than 100 high street computer shops over the last 18 months, and with the UK piracy rate currently standing at 27%2, it is clear this is not a limited problem that occurs only rarely. Nor is it confined to the consumer or SoHo marketplace: Microsoft discovers counterfeit software in over 1 in 3 corporate UK customers3 when it carries out software licensing reviews. Microsoft’s goal in taking this legal action is to protect unsuspecting customers and honest businesses, both of whom are innocent victims of this kind of illegal trading. Customers can be left significantly out of pocket, and genuine businesses are exposed to damaging losses by rogue traders cutting corners.

In a further 10 separate cases, the following computer shops each faced court action and admitted to selling unlawful software.

“Microsoft will always make concerted efforts to catch rogue traders and to combat piracy at all levels, but customers have a role to play too,” said Graham Arthur, anti-piracy attorney at Microsoft UK. “If pirates realise they are being fought on both fronts, we believe they are less likely to try to rip people off in the first place. Savvy buyers, who know how to tell the difference between the genuine article and illegal or fake software, can protect their businesses, or their friends and families, from being duped by unscrupulous retailers.”

Arthur continued, “The majority of legal action that we take is driven by complaints or leads from people who want to help us stop pirates profiting at their customers’ expense. We receive 45 emails every week to our UK piracy alias4 and in total take action against 10 rogue traders every month. Customers need to be on their guard online too, as Microsoft takes down over 250 internet auctions each week.”

Arthur adds, “Users simply don’t know what effect illegal software may have on their PC or IT infrastructure. In the UK, it’s estimated that nearly 1 in 3 computer programs installed on PCs are unlicensed. Customers are more vulnerable to computer viruses and malware when they use illegal software. Whether you’re a home user who could lose precious photos or music, or a business whose reputation may be damaged by the loss of sensitive data, it’s important to ensure you have genuine software that you’re confident is not harmful or a threat to IT security.”

Given the very real risks associated with illegal software, Microsoft is keen to highlight resources that help customers spot when someone is trying to sell them counterfeit or illegal software, such as the company’s How to Tell site5. This features a “rogues gallery” of fake Microsoft software with detailed photos showing what buyers should look out for to avoid a costly mistake.

“Ultimately it’s about people using their nouse when they buy, and perhaps doing a little homework before they walk into a computer shop or start searching online,” concludes Arthur. “If a price looks too good to be true, it probably is. With high demand for new products like Windows 7, the temptation for pirates to cash in will be very strong. We want to see our customers getting what they paid for: genuine, fully-supported, reliable software that comes without malware or other unwanted extras.”

A list of illegal traders that Microsoft has taken legal action against in the UK can be found here.

Microsoft UK does offer free replacement software to consumers (not businesses) duped by sophisticated, high quality counterfeit products; further details here. However, this does not apply to the kind of illegal software that the resellers in this release have admitted to selling.

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.

2. Figure from the 6th Annual BSA and IDC Global Software Piracy Study.

3. The Surprising Risks of Counterfeit Software in Business, White Paper, Microsoft, 2009. View the report.

4. Customers can report piracy to Microsoft by emailing ukpiracy@microsoft.com.

5. For Microsoft’s How to Tell site, click here.

Top of page

About Microsoft

Founded in 1975, Microsoft (Nasdaq: “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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

For further information about this press release, please contact:

The Microsoft Press Centre 0845 602 5628, lines are open 9.00am to 6.00pm Monday to Friday ukprteam@microsoft.com

Top of page