Microsoft Applauds Executive Order in California to Prevent Software Piracy in State Government

REDMOND, Wash. -- Oct. 15, 1999 - Microsoft Corp. officials today applauded Gov. Gray Davis and the State of California for the establishment of a strong government policy to prevent software piracy in California state agencies. The executive order in California is the second such order for a particular state following President Clinton's order of nearly a year ago requiring federal agencies and recipients of federal funds to use legally licensed software. Gov. Davis signed the policy today at Stanford University in Palo Alto, Calif., where representatives of the technology industry were present to discuss the technology issues facing the state.

"California has shown tremendous attention to the issues surrounding intellectual property and criminal counterfeiting of software," said Nancy Anderson, senior corporate attorney at Microsoft. "We applaud California's issuance of this executive order, and Governor Davis for his recognition that software piracy is a serious issue."

Microsoft has worked closely with government agencies during the past year to help prevent them from inadvertently acquiring counterfeit Microsoft® software and licenses. It is becoming increasingly easy for customers -- including government agencies -- to be fooled into thinking they are acquiring genuine software, because many counterfeit manufacturers are able to advertise over the Internet and sell it sight unseen. In 1998 the state of California lost more than 18,000 jobs and $244 million in tax revenues to software piracy.

"Intellectual property theft hampers innovation in the development of software programs because it diminishes returns on investment and decreases resources and incentives for further investment to develop newer and better products," Anderson continued. "California, along with Nevada, which signed an executive order in May, are setting examples to businesses throughout their states that will help ensure the protection of intellectual property so the software industry can continue to contribute the economic benefits that the industry generates worldwide."

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