Microsoft Sues Windows Counterfeiters

Microsoft is continuing its campaign to clamp down on unscrupulous system builders and resellers that violate license agreements and distribute counterfeit copies of Windows. In its latest action, Microsoft has filed eight lawsuits in seven states after uncovering the alleged malfeasance through a test purchase program.

The lawsuits were filed against in the states of California, Florida, Texas, New Jersey, Alabama, Maryland and Rhode Island. Since 1997, Microsoft has routinely purchased software, software components and systems from resellers and OEMs.

The last round up occurred in November 2004, when eight other dealers were served with cease-and-desist letters.

"Our partners are coming to us and asking for our help," said Bonnie MacNaughton, senior attorney at Microsoft. "They are being undercut and forced out of business by having to compete with dishonest PC manufacturers and resellers who continue to sell illegitimate software. That isn't fair to our partners or to the customers who depend on them."

Microsoft credits the federal Anti-Counterfeiting Amendments Act of 2003, signed by President Bush, for closing a loophole that outlawed distributing standalone or separated Certificate of Authenticity (COA) labels.

Another anti-piracy program that targets dishonest resellers called Windows Genuine Advantage (WGA) launched last fall. WGA requires users to validate their Windows product key in exchange for special perks at the Microsoft Download Center and full access to Windows Update.