US, China Bust Huge Software Piracy Ring

by Ed Oswald

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.

Add a Comment

18 Comments

Name

E-mail

Betanews reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Foul language and personal attacks will not be tolerated.

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

|

Audiovox flashback features Elvis and rabbit-ears

Elvis! The season's first sighting of the King occurred at the Audiovox press...

Live from the Cisco press conference at CES 2009

Known worldwide as an infrastructure company, Cisco now plays a bigger role...

Toshiba focuses on mid-range DTV for everyone

Toshiba's press conference at CES 2009 this morning featured announcements in...

LG unleashes its annual flood of announcements

Holding down its traditional CES-opening spot at 8:00 am, LG on Wednesday ran...

Netgear debuts a BitTorrent-enabled set-top box

The first of NetGear's three big product announcements at CES this morning is...

Live from the LG press conference at CES 2009

Speaking to an overflow crowd in Las Vegas Wednesday morning, executives from...

CES Unveiled event provides a high-energy opener

If CES is a banquet, CES Unveiled -- the opening press event -- is like a...

Going green with iGo by eliminating 'vampire power'

At CES this week, iGo will introduce a surge protector, a laptop charger, and...

Pocket-sized music player / mixer to make North American debut

This week's CES show will mark the North American rollout of a handheld...

PowerMat intros an innovative battery charger

At CES this week, a company called "The Power Mat" will roll out a slick...

First look at Novatel's MiFi wireless hotspot

At the CES Unveiled press event tonight, Novatel Wireless gave a first look...

New Asus netbooks will feature Windows 7

UPDATED At a press conference at CES 2009 Tuesday evening, Asus introduced...