Trade Me seller pays Microsoft $15,000 damages over pirated software

A recent investigation undertaken by Microsoft New Zealand has identified an Auckland-based online auction trader, OnlineSale Computers Limited, selling pirated Microsoft software. Using non-authentic software can have serious negative implications for consumers as it can often be full of spyware, malware and viruses, the company says

Microsoft’s investigators purchased a personal computer with Microsoft Windows 7 Home Premium from OnlineSale Computers Limited via Trade Me.  The computer was analysed and found to have been pre-installed with an unlicensed copy of Windows 7 Home Premium.

OnlineSale Computers Limited and its directors admitted infringing Microsoft’s copyright and apologised for doing so. They paid $15,000 of damages for selling pirated Microsoft software on personal computers.

Microsoft’s Digital Crimes Unit continually searches internet auction sites, like Trade Me, for sellers offering pirated Microsoft software, and takes action to stop them.

Clayton Noble, Legal Counsel for Microsoft, says it's important for the general public’s sake that Microsoft stops them selling this unauthorised software.

“Microsoft is committed to protecting consumers from downloading or purchasing non-genuine software, because it’s often full of spyware, malware and viruses that can lead to identity theft, loss of data and system failure.

“Some strains of counterfeit software products contain hidden key-logging software that allows criminals to steal passwords, bank account details and other personal information,” says Mr Noble.

People who sell computers installed with pirated copies of Microsoft software infringe Microsoft’s copyright and other intellectual property rights.  They also gain an unfair advantage over the legitimate resellers who comply with the copyright law by supplying genuine, licensed software.

Paul Kao, General Manager of Playtech, one of Microsoft New Zealand’s largest system builder partners, says it's tough as a reseller trying to compete with others who try to bend the rules to get prices down.

“Customers mainly look at price and would never think the pre-installed software wasn’t genuine, so we appreciate the effort Microsoft invests to discourage the use of pirated software, as well as educating consumers on the risks of using unlicensed software," Mr Kao says.