Feb 4, 2011 15:37 GMT  ·  By

Software piracy can be extremely profitable for organized criminal gangs Microsoft is warning, with the money being used to fund additional illegal activities.

David Finn, Associate General Counsel, Worldwide Anti-piracy and Anti-counterfeiting, Microsoft underlined the growing risks associated with pirated software recently during the 6th Global Congress on Combatting Counterfeiting and Piracy.

Finn pointed to an article in The New York times revealing that one of Mexico’s most brutal drug cartels La Familia Michoacana, was responsible for a flourishing counterfeit software ring.

“According to an analysis by the Mexico Attorney General published in other articles, the group’s illegal counterfeiting activities involved a sophisticated distribution network of 180,000 points of sale in stores, markets and kiosks, earning more than $2.2 million dollars in revenue every day.

“It’s no wonder that enforcement agencies and governments are deeply concerned about this trend,” Finn noted.

Jointly hosted by the World Intellectual Property Organization (WIPO), International Criminal Police Organization (INTERPOL), and the World Customs Organization, the Global Congress on Combatting Counterfeiting and Piracy conference was a perfect scene for participants to get additional information about the involvement of organized criminal organizations in software piracy.

Finn underlines that going forward, it’s crucial for organizations, governments, and businesses to work together in order to curb piracy, and by extension cut the funding for other crimes.

“Sophisticated criminal syndicates and drug cartels are building large scale counterfeiting operations and selling illegal software to consumers.

“These illegal enterprises have generated astronomical profits that the gangs funnel toward violent crimes such as drug trafficking, arms and weapons trafficking, kidnapping and extortion,” Finn explained.

The findings of a recent survey commissioned by Microsoft indicate that 72% of a total of 38,000 participants from over 20 countries believe that members of the software industry should do more to protect them from pirated products.

65% of respondents also want governments to do more in terms of cracking down on the software piracy phenomenon.

Users are concerned about a number of inherent threats synonymous with pirated software, from malware infections to identity theft and data loss.

“For our part, Microsoft’s team of 75 investigators, lawyers, engineers, and advisors will continue to build new anti-piracy technology to keep ahead of these sophisticated operations, work to enact new policies that will go further in protecting consumers, businesses and economies, and spread the word about the risks that counterfeit software carries.

“We’ll also continue to work with the broader industry, governments, and other agencies to help reduce all of the risks associated with software piracy,” Finn added.