Microsoft: file sharing threat to VARs

Software giant urges channel to protect itself against threat of illegal file sharers

Michala Wardell: Wants to protect channel losing more sales through illegal downloads

Software giant Microsoft has warned VARs to be on their guard against the risks posed to their businesses by online file sharing.

During a roundtable on the Future of Software Piracy in Central London today, the vendor warned that end users are increasingly using file sharing websites to procure illegal copies of software for business purposes.

Michala Wardell, head of anti-piracy at Microsoft, said the behaviour is being fuelled by people who got into file sharing when they were younger entering the workplace.

“Many people think it is teenagers, but file sharing has been around a while now and what we are seeing is a new generation coming through, running small businesses, who have a different attitude to intellectual property,” said Wardell.

The vendor carried out a four-week investigation into the number of times its Office software suite and Windows operating system were illegally downloaded from file sharing web sites to gauge the impact on the channel.

“During that four-week period, there were 16,000 illegal copies of Microsoft Office and 20,000 copies of Windows downloaded,” explained Wardell. “What is most worrying is this investigation took place in August, which is typically a quiet month.”
In order to protect their businesses, Wardell said, the channel needs to embark on some “gentle education” about the dangers associated with illegal software use.
“It is not about scaremongering, but outlining to customers the true impact this could have on their business,” she said.

This is a view shared by Andrew Walker Brown, sales manager for EMEA at security vendor SonicWall, who also attended the event.

He explained: “When you try to educate people about the risks involved, they think you are trying to scare them and they switch off.”

Despite this, the channel should be emphasising the link between illegal software use and viruses, he added.

Further research from Microsoft found that 69 per cent of its products that are available to illegally download feature some kind of malware.

“If you are inclined to do that kind of download, there is no way of determining whether or not it is going to be a safe or has a virus associated with it,” said Walker Brown.

“Malware has evolved over the past few years from being an openly agreesive thing on the PC to more of a silent infection that will be used to launch a broader attack at a later date," he added.

Julian Swan, director of compliance marketing EMEA at the Business Software Alliance (BSA), urged the channel to be proactive in reporting file sharing sites.

He said: “We rely on this information [for enforcement activities] and we act on every piece we get.”

Wardell added, with each download equating to one missed sale, it really is in the channel’s best interests to speak out.

“If the channel works with us, we can have links removed and sites taken down,” she said. “They may think it is really minor, but if they have lost one sale through this, they can help us stop them losing more.”