Microsoft helps FBI crack $2bn Chinese piracy ring

Counterfeit Microsoft products manufactured in China were sold in 27 countries around the world

A massive, multi-year piracy investigation ended dramatically this week as the biggest counterfeit software syndicate in the world was brought crashing down.

Raids and arrests in southern China over the past two weeks marked the end of the lengthy investigation undertaken by the FBI and China's Public Security Bureau (PSB). Microsoft along with its customers and partners helped in the investigation. A total of 55,000 discs were seized during the investigation.

The software, found in 27 countries and on five continents, included versions of Windows Vista, Office 2007, Office 2003, Windows XP and Windows Server - and is believed to have generated turnover of $2bn. Fake software was produced from various outlets in China in at least eight languages including Croation, Dutch, English, German, Italian, Korean, Chinese and Spanish.

Brad Smith, senior vice president and general counsel at Microsoft, said: " This case represents a milestone in the fight against software piracy - governments, law enforcement agencies and private companies working together with customers and software resellers to break up a massive international counterfeiting ring.

"This case should serve as a wake-up call to counterfeiters. Customers around the world are turning you in, governments and law enforcement have had enough and private companies will act decisively to protect intellectual property."

Michel Danet, World Customs Organization Secretary General, said: “Customs around the world, from Cairo to London, Vancouver to Hamburg, and New York to Beijing, seized dozens of shipments numbering thousands of counterfeit Microsoft software products produced by these criminals. This clearly shows that customs around the world are at the forefront of the battle to protect consumers from harm by counterfeit goods, and that sharing information is vital in order to build strong enforcement.”