14 DAY TRIAL // Information provided by Microsoft together with the FBI in Los Angeles proved vital in the largest worldwide investigation into a Chinese software counterfeiting syndicate. Microsoft informed that China's Public Security Bureau (PSB) brought down the bootlegged operations following a series of raids and arrests in the southern province of Guangdong. In this manner, the PSB and FBI concluded a multiyear investigation into the major software counterfeiting ring which is believed to have pirated in excess of $2 billion worth of Microsoft software.
"Microsoft deeply appreciates the work of China's Public Security Bureau in taking such strong enforcement action with these arrests and raids in Southern China," said Brad Smith, senior vice president and general counsel at Microsoft. "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."
The Chinese counterfeiting syndicate allegedly pirated no less than 13 of Microsoft's most popular software products. The ring was not only producing bootlegged software, but also creating program components and even fake certificates of authenticity. Microsoft revealed that the syndicate was actively involved in both the counterfeiting process, via its own replication plant lines but also in the distribution of the illegal products.
"The counterfeit software, found in 27 countries and on five continents, contained fake versions of 13 of Microsoft's most popular products - including Windows Vista, the 2007 Microsoft Office release, Microsoft Office 2003, Windows XP and Windows Server. The counterfeits were produced in at least eight languages: Croatian, Dutch, English, German, Italian, Korean, Simplified Chinese and Spanish," Microsoft stated in a press release.
The pirated materials from China made their way to Europe, the Middle East, Asia, Australia, the United States and Canada, Microsoft said. In excess of 55,000 sophisticated and quality items of pirated software were reported during the investigation in relation to the Chinese syndicate. "The 55,000 examined discs are believed to constitute less than 1 percent of the millions of counterfeit copies that are estimated to have been produced and shipped to distributors. Countries around the world are expected to experience a significant decrease in the volume of counterfeit software as a direct result of this action," Microsoft added.