By Andy McCue, 16 February 2006 14:35
NEWS
Microsoft has launched a new software piracy crackdown in the UK which will target computer shops, resellers and online auctions selling counterfeit copies of its products.
The company claims software piracy costs the company £250m per year and has set a target of reducing the UK piracy level of Windows XP by five per cent over the next three years from the current figure of 16.7 per cent.
Speaking at the launch of the 'Keep IT Real' campaign, Alistair Baker, head of Microsoft UK, said the focus would be on cracking down on small resellers and system builders who are undercutting genuine channel partners by selling pirated Microsoft software.
He said: "We are going to try and cut the problem off at source. We believe over two-thirds of PCs shipped in the small system builder market are without genuine copies of Microsoft software."
Pirating software is still seen as a low-risk, high-reward crime. Michala Alexander, head of anti-piracy at Microsoft UK, said 1,500 copies of Office 2000 Pro cost just £30,000 to buy from a pirate but have a street value of £300,000.
Online auctions are one of the areas where Microsoft is stepping up its anti-piracy activities by levelling threats of legal action against the repeat offenders. Alexander said Microsoft's anti-piracy enforcement staff take down more than 200 bogus software sales per day on eBay's UK website alone.
Microsoft has identified several regional piracy "hotspots", such as Glasgow, Manchester and Middlesbrough, which its enforcement team will be targeting over the next year.
Alexander said the crackdown is not only about cutting Microsoft's own piracy losses but also about protecting the business of its legitimate channel partners who face being undercut by those selling pirated products.
She said: "We don't want to see good system builders going out of business and we don't want to see customers duped by illegal trading."
Paul Ramsden, deputy CEO at the Trading Standards Institute, added that software piracy is not a victimless crime and the proceeds help fund much more serious crimes.
He said: "These people we are dealing with aren't local criminals. This is big business. It funds terrorist organisations."

Comments
There are 11 comments. Join the discussion
1. B3n_D0V3R
funds terrorists?
LMFAO
better watch all those g33ks dont get there hands on some WMD!!!!!
2. Turbo Geek
Last two paragraphs of the article:
Paul Ramsden, deputy CEO at the Trading Standards Institute, added that software piracy is not a victimless crime and the proceeds help fund much more serious crimes.
He said: "These people we are dealing with aren't local criminals. This is big business. It funds terrorist organisations."
--end quote--
Where is the evidence of this? This is a VERY provacative claim to make as the 'terrorist card', when played, always sets off alarm bells.
I certainly hope the "journalist" who acquired this quote pressed for some details that would verify this claim. If not, then it whomever publishes such quotations is taking a partisan position in support of the intellectual property industries.
All too often, the main-stream media just parrots whatever carefully crafted press release the RIAA/IFPI, MPAA, or BSA spokeperson proffers without critical review or any attempt to independently verify any assertions made in such self-serving press releases.
3. anonymous
I was all in favour of this approach/story...until the Terrorism Card was played. Sorry, but that really is just trying to play on people's fears. The author of this story should not have exaggerated the significance of that aspect of the problem. Microsoft are taking action because they are losing money not because they want to help in the fight against terrorism....end of story.
4. Ian Savell
Come on Microsoft, check your prices!
Windows XP home retails at £140 ex VAT from a well known online store, XP pro is £200. The OEM price with a new PC is far lower. No-one can sell 1500 pirated copies for £300,000 when the real thing can be bought for less!
This sort of exageration doesn't help Microsoft's credibility. Also, everything these days is said to "fund terrorism". In reality the Manchester operation probably funds a top of the range BMW and a lifestyle to suit. Bin Laden is funded by Saudi business and the IRA were funded by US sympathisers and bank raids.
5. Simon Jefferson
By reducing the retail cost of Windows OS and Applications by just 20% would have an effect on the amount of piracy.
A lot of people I come across say they have a pirated copy of at least one MS product, and they say that they cannot afford the price of new software.
I always tell them to buy original software, as this is the only software that can be validated and upgraded and in the long run will produce fewer problems, but the cost is still an issue.
6. Richard Davies
I have a small IT business and have recently had a customer approach me for a new PC and shown me costs from another local shop; if you know your prices and licencing etc. it was obviously with an illegal copy of windows but the customer was totally un-aware. These people need reporting and shutting down as it affects other legitimate business.
7. anonymous
"Funds terrorists" - yeah, yeah, yeah
8. Dean Mitchener
Any of these guys made any software that works properly yet? Until then this type of action will force many further down the open source track which is rapidly taking over as the preferred choice of operating system for servers and is very soon going to be available as a viable option for desktops.
I have been firmly in the MS camp for twenty years now but with charges for everything Microsoft has to offer, we -as an IT solutions company, I have to seriously think about embracing the open source option which is already being measured by the dramatic increase in the calls for experience and qualifications from the recruitment industry.
9. Kazuki
"Funds terrorists" The Microsoft is little bit to harh. They shouldn't mention like that.
10. anonymous
Microsoft's pricing is their own worse enemy.
I'm considering building a small web server, not expecting a massive hit count.
Option 1: MS Server2000 + IIS
£Hundreds
Option 2: Linux + Apache
£Zero
Tough call.
I know MS IIS, so the tempatation to use a pirated copy is there, as buying one is definitely not going to happen -
unless there's a cheaper (legal) version available.
But as I don't use pirated s/w, looks like a learning curve...
11. Mark Whybrow
Why do people want to pay for an operating system when Linux is cheaper, more reliable, more secure and has less attacks from viruses?
I bought 2 versions of Linux, with books, loads of software and all for £ 60. Windows xp Professional around £ 250 to £ 280, few software and no book to use XP. Openoffice is free and it can read and save in MSoffice too. If people used their loafs, they would safe a fortune for a more professional package.