Microsoft Clamps Down on Software Auctions

Microsoft has taken action against nearly 55 defendants worldwide in an effort to curb online dealers from selling counterfeit software through auction sites such as eBay. The company said it had warned many of the parties involved through cease and desist letters, among other methods.

By region, the actions include 15 within the United States, 10 in Germany, 10 in the Netherlands, and five each in both France and Britain. In addition, complaints were filed in Argentina, Australia, Belgium, Korea, Mexico, and Poland.

"Counterfeit software is defective and dangerous because counterfeiters tamper with the genuine software code, which leaves the door open to identity theft and other serious security breaches," said Matt Lundy, a senior attorney at Microsoft.

Many of the defendants were caught through the Windows Genuine Advantage program, which allows customers to report counterfeit software. In some cases, in exchange for assistance, Microsoft will provide a genuine copy of the program at no charge.

Two studies, one by Microsoft and another by IDC, show that counterfeited software poses a security risk when installed. The IDC study focused on key generators and crack tools, indicating that 11 percent of those downloaded from websites and 59 percent downloaded from P2P networks contained some type of malicious software or code.

That study followed Microsoft's, which found 34 percent of counterfeit Windows XP disk could not be installed on a computer, and another 43 percent contained additional programs, or binary code.

"It is more important than ever for users to educate themselves about these dangers," IDC senior vice president John Gantz said. "Our findings underscore the simple fact that there are real costs in the form of increased risks to security and personal data that can easily outweigh any perceived savings from using counterfeit software."