Software giant Microsoft has secured a High Court payout from a UK distributor over the illegal importation of software.

The settlement, for an undisclosed sum, was reached after Microsoft won its case against Pyramid Distribution for importing tens of thousands of copies of Microsoft software into the UK.

Microsoft claimed Pyramid’s actions have cost genuine distributors and resellers millions of pounds in lost turnover.

Michala Wardell, UK head of anti-piracy at Microsoft, said: “Microsoft has been looking into Pyramid Distribution for the past couple of years and it has admitted to piracy. Because of the substantial number of products and the impact on resellers, action had to be taken. The firm was importing a range of products and was definitely looking to maximise its business illegally.”

Wardell explained that Microsoft has an anti-piracy team called Keep It Real (CRN, 20 February 2006), which travels around the UK educating businesses in software piracy.

“Grey market importing has a huge impact on the channel and genuine resellers suffer,” added Wardell.
“The settlement is a good example that companies must be careful not to buy illegal software. One in three computers in the UK are running illegal software, so resellers should buy from one of the nine authorised Microsoft distributors available in the UK.”

Paul Cooper, head of software asset management at reseller SAMwise, said: “This case reminds resellers they should be more vigilant when it comes to buying software. When a price for software from a distributor seems too good to be true, it usually is. A certified Microsoft practitioner will audit software for any company and inform them of its legality.”

Separately, Cisco has reached a settlement with Gen-X IT after catching the distributor hawking counterfeit equipment. The Manchester- based firm ­ not part of Cisco’s authorised channel ­ has agreed not do it again. The terms of the settlement are undisclosed.
BSA settles largest piracy case to date