Microsoft targets global software smugglers

Microsoft has accused several companies of selling clearly marked educational software to unsuspecting retail customers

Microsoft has filed nine lawsuits and issued more than 50 cease-and-desist letters as part of its long-running campaign to clamp down on international software smuggling.

The lawsuits allege that companies in Jordan and elsewhere posed as academic resellers to obtain hundreds of thousands of copies of discounted Microsoft Windows and Office system software intended for students.

Microsoft claims that these companies reaped "millions of dollars" in illegal profits by allegedly selling the software to internet retailers in the US rather than supplying it to the students.

Many of the internet retailers allegedly made hefty profits by selling the software at retail prices to unsuspecting American consumers who were deceived into buying software that was not licensed for their use.

"Jordan has invested heavily in transforming itself into a fully-fledged knowledge economy," said His Excellency Eng. Basem Rousan, Jordan's Minister of Information and Communications Technology.

"Companies that break Jordan's intellectual property laws will be prosecuted to the full extent of the law."

Investigations are being pursued in other countries where a similar scheme has been used.

The lawsuits were filed in federal courts in California, New York, New Jersey, Florida, Nevada and Montana.

"To those who say software piracy is a victimless crime, I would say this case tells a different story," said Bonnie MacNaughton, senior attorney at Microsoft.

"The defendants in these lawsuits and others are charged with profiting from selling clearly marked educational software to unsuspecting retail customers who were not licensed to use it, potentially depriving students and schools of the opportunity to benefit from the latest technologies."

EDirectSoftware.com, one of the largest alleged offenders, has already agreed to settle Microsoft's lawsuit out of court for more than $1m in cash and property.

Other merchants that received cease-and-desist letters have agreed voluntarily to stop selling the software, which is clearly marked 'Student Media' and 'Not for retail or OEM distribution. Not for resale.'