Microsoft ends piracy row

By ADAM GIFFORD

Microsoft has settled its complaints against five New Zealand computer dealers it found selling pirate software.

But one of the dealers believes he was set up by the software giant.

Microsoft lawyer Vanessa Hutley said Alpha Computers, Greensbo Pacific, D&J Butcher, Midnight Express and @ Computers were either selling the software on counterfeit CDs or loading it onto PCs.

Ms Hutley said the busts were the result of an ongoing anti-piracy initiative, which included a telephone hotline, investigation of newspaper advertising, and undercover operations.

The dealers had paid damages into a Microsoft charity and signed undertakings not to be involved in the illegal sale and distribution of pirated software again, she said.

"Honest dealers and consumers should not have to put up with corrupt channel members luring customers with the promise of bargain basement deals that are simply too good to be true," Ms Hutley said.

"Honest dealers are shouldering heavy costs because of dealers selling illegal software."

Roy Sparksman, of @ Computers in Palmerston North, was penalised for copying software onto a hard disk and selling a pirate CD.

"They set us up and I made a mistake," Mr Sparksman said.

"A lady came in and said she already had a copy of Windows 95, so she wanted a computer without an operating system.

"The computer she got was preloaded with Windows 98, and I let it out of the shop without taking it off."

Mr Sparksman said he compounded his folly by agreeing to a request from the two men picking up the computer - who were actually private investigators - for a CD with a backup copy of the Windows operating system.

"In the pressure of setting up a new business I took a too casual attitude," Mr Sparksman said.

Microsoft demanded $10,000, but Mr Sparksman persuaded the company to accept $4000. He also paid his own legal costs of more than $1000.

"I was sorely tempted to contest it in court, but looked at the expense.

"I'm still recovering - you've got to do a lot of work to earn $5000 in this industry."

The Business Software Alliance, of which Microsoft is a prominent member, claims piracy accounts for 31 per cent of software in New Zealand and translates to losses of $41 million for the industry.