Bill has good reason to smile: the guys behind 90 percent of Microsoft product piracy are behind bars.

Bill has good reason to smile: the guys behind 90 percent of Microsoft product piracy are behind bars.

In a press release issued yesterday, Microsoft announced that it had successfully prosecuted a gang of software counterfeiters which the company claims was responsible for over 90 percent of fake Microsoft products distributed world-wide.

The owner of Taipei-based software distie-stroke-copier Maximus Technology, Huang Jer-sheng, has been sentenced to four years imprisonment in a hearing before a Taiwanese court. His associates have been given sentences ranging from eighteen months to three years.

The company claims that the counterfeiters produced cloned versions of 21 different Microsoft products with an estimated retail worth of $900 million.

David Finn, associate general counsel for worldwide anti-piracy and anti-counterfeiting at Microsoft – and presumably the owner of the biggest business cards in the industry – said the sentences provide “another stark reminder of the consequences of counterfeiting Microsoft products,” and that the case was a “testament to the strong partnership between local law enforcement authorities and private companies, and shows the impact those partnerships can have in getting counterfeit software off the market and bringing criminal counterfeiters to justice.

Investigations into the syndicate took place over a period of six years and spanned five continents, and involved local law enforcement as well as the Intellectual Property Crime project at INTERPOL.

Microsoft is clearly hoping that with the counterfeiting ring dissolved sales of their products at a retail level – especially the flagging flagship Vista – will pick up as a result of the hopeful scarcity of cheap pirated options. The case also shows, however, that the anti-piracy systems built into recent Microsoft products – including Windows Genuine Advantage – aren't quite as effective as the company had perhaps hoped.

Have you ever been duped into buying software you later found to be counterfeit? Let us know over in the forums.
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Quote yakyb 5th February 2008, 09:19
good for microsoft

who knows what else this Money is feeding
Quote Dreaming 5th February 2008, 11:08
There is a figure that says 25% of all software on all PCs is counterfeit. That's a pretty shocking statistic considering there are free alternatives for most everyday programs. I expect a lot of that though is internet kiddies with photoshop trying to be artistic.

I don't expect this will slow down piracy though. Groups that organise themselves over the internet often collaborate together to break the copyright protection stuff on software, and this is then distributed through p2p channels - so really there is no way of stopping it, it's like cancer for want of a better metaphor, spreads all over with no centralised area. They can take down torrent trackers, but they're always playing catch up. What was that music sharing service that got done? Then they cracked down on limewire and so. Now they're cracking down on torrents. But the demand is there and people will just come up with another way.

Personally I think steam is the best idea, it's all enclosed so it can't be cracked. (Having said that, I've seen servers in the browser claiming to be 'fixed' which means it works for cracked versions). Other copyright protection systems that hinder rather than help just put off customers. I still don't like having to put CDs in the drive.
Quote Firehed 5th February 2008, 14:17
Quote:
Originally Posted by Dreaming
There is a figure that says 25% of all software on all PCs is counterfeit. That's a pretty shocking statistic considering there are free alternatives for most everyday programs. I expect a lot of that though is internet kiddies with photoshop trying to be artistic.
This may be the case, but a lot of that free software is truly awful from a usability standpoint no matter how many features it shares. It's an unfortunate fact of life when dealing with software - most programmers can't do UI and most designers can't program, and this really shows when you realize that Adobe, MS, Apple, etc have the money to hire both while FOSS guys are typically programmers with free time (and good designers can find a job that actually pays them). I'm not knocking FOSS on principle as I love the effort, but other than a couple rare exceptions it's just a fact. I'd sooner look for a Photoshop torrent from an Adobe employee's laptop than actually try to do anything productive with the GIMP.

Good on Microsoft I guess, but maybe they should start looking into why people are stealing their software. I had no problem dropping $199 on my family pack of Leopard (knowing full well that it's identical to the $129 single-user as there's not so much as a serial key for copy protection), and buy software from the small vendors who put out some great work all the time - I've dropped about $100 with Panic for Transmit and Coda, bought both MacHeist bundles for $50 each (plus one other bundle I think a while back), plenty of little cheap speciality apps that simplify things I could already do by hand if I wanted to waste the time, etc. I have NO problem paying for software - it just has to be worth the money.
Quote Squadexodus 5th February 2008, 14:30
I draw the line at operating systems. I really only use torrents for downloading free things, like battlefield mods and such. Having a pirated OS would freak me out, knowing that Microsoft knows that its pirated
Quote chicorasia 5th February 2008, 15:41
In Brazil, OS piracy was rampant until a couple years ago.

By means of Government incentives (tax cuts), PCs are becoming much more affordable, and we are seeing a very rapid increase in the number of PCs sold. All serious retailers sell new PCs with an OS preinstalled - be it windows SE, linux, winxp or whatever.

Thusly, what was once seen as and "added cost" - an original OS! - has now become part of the basic expectations of any consumer.

I don't recall the exact figures, but software piracy in Brazil has reduced dramatically, despite the enormous growth in PC sales.

Just to show that sometimes, good policies and good marketing practices go a long way to reduce software piracy.
Quote DXR_13KE 5th February 2008, 16:11
a hint to MS: "lower the prices of your OS in certain less rich countries.... that will make people buy more of your OS"

"The company claims that the counterfeiters produced cloned versions of 21 different Microsoft products with an estimated retail worth of $900 million."

so that's $900 million that MS did not earn because their stuff is to expensive......
Quote craigey1 5th February 2008, 16:41
Quote:
Originally Posted by DXR_13KE
a hint to MS: "lower the prices of your OS in certain less rich countries.... that will make people buy more of your OS"

"The company claims that the counterfeiters produced cloned versions of 21 different Microsoft products with an estimated retail worth of $900 million."

so that's $900 million that MS did not earn because their stuff is to expensive......

but at half (or even a quarter) of the cost, it'd still be a significant figure.
I agree that MS software is expensive, but that's still a heck of a lot of lost revenue.
Quote Tim S 5th February 2008, 16:44
Quote:
Originally Posted by craigey1
I agree that MS software is expensive, but that's still a heck of a lot of lost revenue.

No two ways about that one, for sure.
Quote splashdream 5th February 2008, 17:09
so now that over 90% of the offenders are caught sounds like it is time to lower there core product prices or...imagine this...integrate there two most popular software/os packages...windows with integrated office apps at a fraction of the price. When is enough...enough?
Quote Cthippo 5th February 2008, 21:02
This will be an interesting exprriment in the effectiveness of anti-piracy measures. If MS sales increase in the region, then it worked. If they don't, then it shows that piracy does not equal lost sales.

My money is on the latter. People who pirate will never buy.
Quote Glider 5th February 2008, 21:08
Quote:
Originally Posted by craigey1
but at half (or even a quarter) of the cost, it'd still be a significant figure.
I agree that MS software is expensive, but that's still a heck of a lot of lost revenue.

Not picking on you, picking on the statement...

Windows is expensive most say, but it is the thing you look at 99% of the time... compare that to those 300€ graphic cards some use just for that 1 game... I really like how HW may cost an arm and a leg, but the thing that makes it actually run must be as cheap as possible
Quote metarinka 5th February 2008, 21:29
IIRC the gross nation product per capita in china is under 1,000 USD. lets say it was at 1000. in the USA the average os costs $100 not factoring in the price of a computer. Now how much does your family make? are you willing to spend 1/10th of your families income on a piece of computer software, when you can get the exact same thing for just a tiny bit of the cost? That's the core issue. My cousin lived in Turkey for a year, when he came back he had a stack of about 100 or so pirated video games. First he said it was very hard to even find pirated software, but at 1-10 a game there was no excuse not to buy a lot of copies. Hopefully it will slow down, but right now the cost is too prohibitive
Quote fathazza 5th February 2008, 21:34
meh, id do four years in jail for $900 million ;)
Quote mikeuk2004 5th February 2008, 21:59
Quote:
Originally Posted by fathazza
meh, id do four years in jail for $900 million ;)

Not a bad price, but Tai prison is not as nice as UK prisons :) I dont think they get sky TV, pool tables, fags and Internet?
Quote Glider 5th February 2008, 22:00
Quote:
Originally Posted by metarinka
IIRC the gross nation product per capita in china is under 1,000 USD. lets say it was at 1000. in the USA the average os costs $100 not factoring in the price of a computer. Now how much does your family make? are you willing to spend 1/10th of your families income on a piece of computer software, when you can get the exact same thing for just a tiny bit of the cost? That's the core issue. My cousin lived in Turkey for a year, when he came back he had a stack of about 100 or so pirated video games. First he said it was very hard to even find pirated software, but at 1-10 a game there was no excuse not to buy a lot of copies. Hopefully it will slow down, but right now the cost is too prohibitive

If you can't afford a PC, you shouldn't buy one... Pirating isn't an excuse
Quote Spaceraver 6th February 2008, 02:17
So they could lower prices to an agressive point now i think.. if vista home premium was available for say £145 instead of the £215 it is now here id, buy it and add another pair of RAM sticks.
Quote yakyb 6th February 2008, 10:41
home premium is £60 for OEM i dont understand why prepole always buy the retail version

£60 is a very resonable price for Windows
Quote Glider 6th February 2008, 11:14
Quote:
Originally Posted by yakyb
home premium is £60 for OEM i dont understand why prepole always buy the retail version

£60 is a very resonable price for Windows

http://forums.bit-tech.net/showthread.php?t=146273
Quote E7130 6th March 2008, 16:47
Glider,

You should point out that as long as your motherboard is defective and under warranty, if you receive a replacement you don't have to purchase a new license. Or, if you are able to find the same exact motherboard to replace damaged one. I posted Microsoft's OEM info in that thread.
Quote Amon 6th March 2008, 18:49
It should be a queue to lower the prices of their products by just a tad...
Quote cpemma 7th March 2008, 01:10
Quote:
Originally Posted by Dreaming
There is a figure that says 25% of all software on all PCs is counterfeit.
You (and most other posters) are confusing counterfeit copies with pirate copies. These guys were selling discs to punters who thought they were paying for the genuine article. Real money was changing hands, real people were being defrauded.
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