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A first for Microsoft

A court in Shanghai has handed down a guilty verdict against the Dazhong Insurance company for using pirated copies of Microsoft software. The company was told to pay $318,000 in damages.

It is the first time that Microsoft has brought a successful legal action against a Chinese company for copyright infringement.

Story here.

Although the billions Microsoft loses to software pirates each year is bad enough, it’s believed that pirated software can be a serious malcode vector as well. A 2006 study by marketing intelligence firm IDC found that 25 percent of counterfeit software tried to install malcode when it was downloaded.

Media Surveillance, a German anti-piracy firm, said last year that one of its studies found 32 percent of pirated copies of Windows and hacks contained malcode.

Last year Microsoft launched an anti-piracy campaign that included educational initiatives and enforcement actions in over 70 countries to raise awareness of counterfeit software and to protect consumers.

Story here.

Tom Kelchner

Update:

According to English language People’s Daily Online, a news outlet of the Chinese Communist Party:

“Evidence used in court showed that Dazhong Insurance used at least 450 copies of pirated software and violated software piracy laws in nine categories. Microsoft demands that Dazhong Insurance should halt the use of pirated software.”

Story here: “Microsoft gets compensation for software piracy in China”