Microsoft catches dirty dozen in channel crackdown

Dodds: most resellers can not afford to live with even small losses to illegal traders

Microsoft has discovered 12 more resellers selling illegal software across the UK – five of which are based in Manchester.

The software giant reached settlements with the resellers, which all admitted to hard-disk loading and selling software illegally.

These included Manchester-based 1Hr Computers, Computer Warehouse, Intellect Computers, Annecto Computers and Charisma Computers, plus Berwickshire-based Boss Systems, Comp-u-Tel, Thatcham, and ICN Computers.

Microsoft also came to agreements with Cheshire-based Hi-Tec, Shropshire-based Swift Computers, Nottingham-based PWRTech and Leicester-based Unique Computers (UK).

Scott Dodds, general manager of small, medium enterprises and partners group at Microsoft UK, said: “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.

“However, at a time when the Federation of Small Businesses claims 120 businesses a day are going bust, Microsoft is working hard to stamp out unfair competition that puts pressure on resellers’ margins, and also threatens to drive them out of business.”

Dodds said that because 80 per cent of Microsoft’s registered partners are small businesses, with fewer than 10 employees, the company is intensifying its efforts to tackle illegal traders and to raise awareness of piracy as a genuinely serious threat to the channel.

“Most resellers cannot afford to live with even small losses to illegal traders, which will almost certainly be undercutting them,” he added.

A representative for 1Hr Computers, said: “We recognise that we were not installing Microsoft software correctly, and that is something we take seriously.

“We will be working with Microsoft over the next few weeks to make sure what we do falls within their software rules from now on. It is good to see Microsof t working with small computer traders like us to ensure we are up to speed on the right way to use and sell their software.”

Since the start of this year Microsoft says it has taken action against 92 hard-disk loaders and believes many resellers still underestimate the scale of the problem.

Graham Arthur, anti-piracy attorney at Microsoft UK, concluded: “Everyone in the channel, from distributors down to local computer shops, needs to move piracy up their agenda.

“If partners see suspicious buying patterns, or 'too good to be true' prices, they should tell us and we will act swiftly and decisively to defend the livelihoods of our reputable partners.”