Microsoft seeks damages in counterfeit row

Software giant imposed fine on VAR for illegal software dealing back in 2002

Microsoft is at the centre of a counterfeit software dispute with a UK VAR, which has claimed the software giant is demanding unfair damages.

The VAR, which has asked to remain anonymous, has claimed that Microsoft sent it a letter demanding more than £20,000 in damages for “dealing in counterfeit software, or otherwise infringing Microsoft’s copyrights”.

In June 2004, Microsoft agreed a settlement with Totally Legal Software, which at the time admitted to trading in counterfeit software.

Microsoft also made settlements with Isis Computer & Electronics, Isis Distribution, Stormtech Distribution and St Trading.

The reseller at the centre of today’s dispute admitted it bought Microsoft software from Stormtech Distribution between 2002 and 2003, but was unaware of its counterfeit nature.

“Microsoft is threatening to take us to court simply for buying software from Stormtech. The first warning demanded £20,000. Microsoft always claims that court is the last resort, and that it tries to educate resellers. This is simply untrue,” the VAR said.

Michala Alexander, head of anti-piracy at Microsoft, said: “It is the responsibility of the VAR, not Microsoft, to ensure it is sourcing and supplying legitimate software.

“Microsoft has consistently advised VARs that are tempted by suppliers of cheap Microsoft technology to be sure of the products’ legitimacy. A good rule of thumb is that if the price seems too good to be true, it probably is.”

Alexander said Microsoft begins legal action only if appropriate and once it has gathered enough evidence to succeed in court.

“Microsoft is committed to preventing its customers from falling victim to software pirates,” she added.

Dave Simpson, sales and marketing director at Microsoft reseller Softcat, said: “I don’t have a lot of sympathy for any firm dealing in counterfeit software. If you do something wrong it will remain part of your history.”

Robert May, managing director of Microsoft VAR Ramsac, said: “It is unfortunate for the reseller because Microsoft is making an example of it, but the authorised Microsoft channels are clear.”

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