Software Counterfeiting Ring Broken Up in China

Published: July 25, 2007

by Alex Woodie

Microsoft reported yesterday that a Chinese syndicate responsible for selling $2 billion worth of counterfeit Microsoft software has been broken up. The software giant worked with the FBI, China's Public Security Bureau, and hundreds of customers to crack the ring.

According to Microsoft, officials from the FBI's Los Angeles office and Chinese authorities helped to crack the counterfeiting ring, which was based in China's southern Guangdong province and is believed to be the largest of its kind ever discovered. During raids made over the last two weeks, authorities discovered several production lines that were used to stamp out huge numbers of counterfeit CDs designed to look like official Microsoft products.

Microsoft says the software--including fake versions Windows Vista, Windows XP, Windows Server, Office 2007, and Office 2003--had been shipped to 27 countries, and were produced in at least eight languages, including Croatian, Dutch, English, German, Italian, Korean, Simplified Chinese, and Spanish.

Brad Smith, Microsoft's top lawyer, said the fact that companies, users, and government authorities came together makes this case a milestone in the fight against software piracy. "This case should serve as a wake-up call to counterfeiters," he said. "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."

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