US, China Bust Huge Software Piracy Ring

By Ed Oswald | Published July 24, 2007, 10:57 AM

Raids in the southern region of China have exposed a 2 billion dollar global software piracy syndicate, believed to be one of the largest in the world.

The FBI and China's Public Security Bureau led the investigation. Microsoft, as well as its customers and partners, also assisted in providing information, which led to the arrests and confiscation of the software of those involved.

The group's power was far-reaching -- software produced by it was found across five continents and 26 countries. 13 different products in at least eight languages were pirated, including Office 2007 and Windows Vista.

Investigators were able to trace about 55,000 quality copies of the software back to the group. However, the discs seized through raids represent only about 1 percent of the estimated output of the syndicate.

"This case should serve as a wake-up call to counterfeiters," Microsoft general counsel Brad Smith 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."

Microsoft said that countries around the world will likely see a significant decrease in the amount of pirated software as a result of its actions.

1,000 of the copies received were from customers themselves, who submitted the software through Microsoft's Windows Genuine Advantage. Over 100 resellers also sent in information.

The probe was part of a larger effort by Chinese and US authorities that has been underway for two years and has already led to the arrest of 24 people. The FBI and PSB also recently seized counterfeit Symantec software as well, according to news reports.

Globally, piracy costs the software industry some 40 billion dollars per year, according to a joint study between the Business Software Alliance and IDC.

Comments

If this was a genuine bust - name the group.

Score: 0

|

"This case should serve as a wake-up call to counterfeiters"
they seized less than 1%... guess the whole piracy thing is gone for good

Score: 0

|

"The probe was part of a larger effort by Chinese and US authorities that has been underway for two years and has already led to the arrest of 24 people."

1 person a month *sarcastic clap*.
There's more people beginning large scale pirating than that a month by a long way.

Score: 0

|

Thiers one way to stop counterfeit software price your software at a price people will pay and stop being so bloody greedy

Score: 0

|

You can buy music for less than a dollar a song and people steal that so I do not believe that has anything to do with it. People steal software for one reason, they can.

Score: 0

|

yes, 99 cents is less that a dollar. Average album has about what 10-12 songs? So to get the average DRM crippled album, you need to spend $10-$12, which is _way_ overpriced, not to mention the crappy DRM formats.

Give people a 'legal in usa' version of AllOfMp3.com, with its choice of formats(READ: NO DRM), choice of fidelity, and low price, and i guarantee you will see more sales with less piracy.

Score: 0

|

I can buy a CD for less than a dollar? WHERE?

Score: 0

|

Is your reading comprehension that terrible, or is it your math skills? How did you see "less than a dollar a song" and come up with "a CD for less than a dollar"?

Score: 0

|

Overpriced? That's roughly the same or less than it costs to buy an album in the store. I don't like DRM, but I don't think they're overpriced.

Score: 0

|

Can you not read, a dollar a song. You can download legal songs for under a dollar. No part in my post did I say CD.

Score: 0

|

honestly didn't think the post was worth paying that much attention to... I've already spent more time on the post than this crap is worth.

Score: 0

|

Wow, now that makes sense. I didn't read it so I responded.

Score: 0

|

Ok let me spell it out for you. The response wasn't worth the time to read carefully, I.E. word for word. I skimmed through it, got the jist of what was said then responded to it. God be damed you if you ever make a mistake in this life time. I know you are ooooo so perfect. Now piss off!

Score: 0

|

yea but in store better quality and drm free... thats his point

Score: 0

|

Albeit, of course, the fact that not all conventionally-bought CD's are made up of 'good' songs; buying a $12 dollar CD for a good single and a group of songs you won't ever listen to isn't quite so rosy an outlook.

Score: 0

|

hahahaha, I'm sorry, I just have to say it:
you mean, "the *gist*"?

Score: 0

|

Thats a real nice response. You fail to read then bit&* at me.

Score: 0

|

That seems to be a trend these days. Release a new Cd with one good song then the rest is average at best. A full CD is a waste of money anymore. Maybe there is a reason that catalog CD's are selling so well.

Score: 0

|

Can Linux do BitLocker better than Windows 7?

Betanews kicks off a new series with a look at how the Linux operating system's FDE stacks up against BitLocker, the Windows feature that today commands a $120 premium.

Firefox 3.5: The need for speed

This has been the big payoff week for Mozilla's developers, who worked overtime to squeeze out the last drop of performance from their new JavaScript engine.

'GeoHot' gets a shower, cleans up nice, reveals new iPhone 3G S jailbreak

Either puberty has been very kind to the author of the new 'Purple Ra1n' jailbreak tool, or George Hotz may also have some adequate Photoshop skills.

What's Next: Obama gives 'Einstein' the go-ahead, while China gives 'Green Dam' a thumbs-down

Plus: If you put up a Web site and name it after you and you're a federal judge, you might not want a bunch of weird nudity hanging around on it.

Why would Windows 7 customers spend $120 more for BitLocker?

For pre-orders from now until July 11, Microsoft is offering the Windows 7 Professional SKU for a very steep discount. So why invest in Ultimate?

Geeks vs. journalists: A tale of two worldviews

Recovery with Angela Gunn Why geeks think most mainstream journalism is flaky, and why the mainstream thinks geeks are trying to kill them. (They're both right.)

Fire in downtown Seattle data center knocks out businesses, online services

Small fire has global impact with payment centers, city services down.

Hybrid satellite cell phones aren't far off

The first satellite in Terrestar's hybrid cellular/satellite phone network has been launched.

SMS could be a critical iPhone vulnerability, says white-hat hacker

Mac hacker Charlie Miller knows how to get into your iPhone.

Will Oracle's Java-based Fusion middleware 'fuse' with Java?

Now that Oracle has acquired Sun Microsystems, Java developers and supporters are wondering when Oracle will formally welcome Java into the family.

All together now: iPhone and Palm Pre, likely to both grace O2's UK portfolio

European wireless network operator O2 has reportedly reached a deal to exclusively carry the Palm Pre in the UK. O2,...

Vista's dead: Microsoft kills an OS and no one cares

Carmi Levy: Wide Angle Zoom Can you kill an operating system? Microsoft is about to find out.

Kantaris Media Player 0.5.7

July 3 - 5:34 PM ET

Wine 1.1.25

July 3 - 5:30 PM ET

ChrisTV Online! Free 4.00

July 3 - 5:22 PM ET

glu 1.0.19 RC1

July 3 - 5:11 PM ET

Website-Watcher 5.1.0 Beta 10

July 3 - 1:20 PM ET