Microsoft Helps Protect Consumers by Addressing Repeat Offender Software Pirates

Company calls attention to tools to help consumers receive genuine software. REDMOND, Wash., June 10

REDMOND, Wash., June 10 /PRNewswire-FirstCall/ -- As part of its ongoing
efforts to protect its customers and partners from the risks of pirated and
counterfeit software, Microsoft Corp. today announced the filing of 21
lawsuits in federal court in 14 states against resellers allegedly engaging in
the sale of pirated software, including some alleged repeat offenders.
Microsoft also called attention to several resources available to help
consumers to ensure they are getting genuine software, including the (800)
RU-LEGIT (785-3448) hot line and online validation tools at
http://www.microsoft.com/genuine. In the cases announced today, many of the
companies identified in the suits are alleged to have misled customers by
repeatedly distributing unlicensed copies of Microsoft software pre-installed
on the PCs that they sold. Some of these companies continued with their
illegal business practices even after settling previous lawsuits with
Microsoft.

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Pirates often dupe consumers into buying unlicensed or non-genuine
software through hard-disk loading, which is the practice of installing
unlicensed software onto a PC and then selling the computer to unsuspecting
consumers. In many cases customers who have been sold unlicensed hard-disk
loaded computer systems do not receive manuals or the original media, although
the resellers often charge them the full price. Many customers do not realize
that the software pre-installed on the computer systems they purchased is not
legitimate until they perform a check through the Windows Genuine Advantage
(WGA) or Office Genuine Advantage (OGA) online validation tools, which are
provided by Microsoft to assist consumers in verifying the legitimacy of their
software.

Evidence for some of these cases stemmed from direct customer reports to
Microsoft's anti-piracy hot line, (800) RU-LEGIT, as well as from reports
received through the WGA online validation tool. Microsoft's investigators
received two such leads resulting in today's filing of lawsuits against
Computer Center in Encino, Calif., and Delta Computers in Pine Bluff, Ark.

Microsoft is also hearing from its partner community. "Knowing Microsoft
is targeting resellers of illegal software in my area gives me one less thing
to worry about," said Tim Loney, president and CEO of Solutions Information
Systems, a Microsoft Gold Certified Partner and Small Business Specialist in
Houston. "When the economy is struggling, it is difficult to focus on adding
value to your customers when other organizations are using unfair practices to
gain an advantage, especially when it comes to pricing of software."

This Is Not the First Time

Companies identified in eight of the lawsuits announced today are not new
to illegal software sales allegations. Microsoft previously filed and settled
lawsuits, which alleged the sale of infringing software, including versions of
Microsoft Windows and Office, with these same dealers. Despite the filing of
the previous actions, these companies have continued to sell infringing
software, putting their customers at risk.

"These legal actions are about protecting Microsoft's customers from
falling victim to some dealers who operate a business model of peddling
pirated and counterfeit software," said Sharon Cates, attorney at Microsoft.
"Some companies previously involved in these lawsuits have discontinued their
illegal business practices; others have not. The cases announced today are
indicative of the need to ensure that dealers cease their illegal activity so
that customers can be sure that they purchase genuine, fully licensed
software."

Buyer Beware: What to Watch For and What to Do

Microsoft's customers should also be on the lookout. Piracy and
counterfeiting are problems that impact customers and honest businesses both
in the U.S. and across the globe. This is especially true for the software
industry, and it is important for consumers to be aware of the problem.

Microsoft is committed to ensuring that its customers can obtain genuine,
fully licensed Microsoft software in good faith by empowering them through its
anti-piracy education programs and technology solutions to make sure they get
what they pay for. One such program is helping Microsoft customers validate
their software online and avoid situations where they may be defrauded. The
WGA and OGA online validation tools allow customers to verify that their copy
of software is genuine and fully licensed. If customers learn that they may
have non-genuine software, the validation tools will provide an opportunity
for the customer to report the source of the software, and customers may even
be eligible to receive a genuine replacement copy.

As part of its Genuine Software Initiative, Microsoft also provides a
wealth of resources for consumers who are considering a new software purchase.
On its Web site dedicated to distinguishing genuine, properly licensed
software from pirated software, http://www.howtotell.com, Microsoft provides
visual clues to look for, as well as other tips to avoid purchasing
counterfeit software. In addition, the Web site provides information to help
consumers ensure the software they purchased is properly licensed. This is
just another of the many tools that Microsoft provides to its customers to
ensure that they receive the full value of genuine software.

New Study Highlights Software Piracy Rates

The cases announced today are part of an ongoing challenge that Microsoft
is continuing to address. In fact, according to the fifth annual global PC
software piracy study, which was released in May by the Business Software
Alliance (BSA), more than one-third of PCs around the world are unlicensed or
contain pirated or counterfeit software. In the U.S., the piracy rate in 2007
was 20 percent, a one-point decrease from 2006. However, in that same time
period, the economic losses from piracy increased from $7.2 billion in 2006 to
more than $8 billion in 2007. Microsoft continues to evaluate ways to fight
piracy and counterfeiting in an effort to protect its customers and partners.

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software, services and solutions that help people and businesses realize their
full potential.

For more information about the fifth annual global PC software piracy
study by the BSA: Visit http://www.bsa.org/globalstudy.

Case Summaries

Filed in the U.S. District Court for the Northern District of Georgia,
Atlanta Division

Microsoft Corp. v. Computer Imaging Services, Inc. (Marietta, Georgia),
alleging distribution of infringing Office Pro 2003 and Office Access 2003
software after a prior lawsuit and injunction.

Case No. 1:08-CV-1970

Filed in the U.S. District Court for the Southern District of California

Microsoft Corp. v. ARP Computer Solutions, Inc. d/b/a Computer Circulation
Center (San Diego, California), alleging distribution of infringing Office Pro
2003 software.

Case No. 08 CV 1026 WQH JMA