Texas Resellers to Pay Over $1.4 Million to Microsoft for Software Piracy

Software Piracy Cost Texans More Than $434 Million in Lost Wages and Tax Revenue

DALLAS, Feb. 15, 2001 — Microsoft Corp. today announced it will receive a total of $1.4 million in settlements and judgments stemming from legal actions it has taken against nine Texas resellers for the alleged distribution of counterfeit software. Microsoft has taken these actions in an effort to protect honest channel partners and unsuspecting consumers from the harmful effects of acquiring bogus software. Counterfeit software has an increased potential for obtaining viruses and is often found to be missing key elements, and consumers who acquire it are ineligible for valuable technical support, warranty protection and upgrades.

In the past year, nearly 5 million units of counterfeit Microsoft products have been seized worldwide with an estimated value of over $1.7 billion. Texas' 1999 software piracy rate of 25.7 percent cost the state more than 6,996 jobs and over $434.4 million in combined wages and tax revenues, according to a study by International Planning & Research Corp.

Microsoft will contribute the net proceeds of its anti-piracy recoveries to nonprofit organizations worldwide to help curb the negative impact that software piracy and criminal counterfeiting have on local communities.

Microsoft corporate attorney Mary Jo Schrade is available today to discuss the Texas settlements and judgments, the warning signs of counterfeit software and the extent of software piracy in Texas and throughout the United States.

Who: Microsoft corporate attorney Mary Jo Schrade

What: Dallas-area software piracy settlements and judgments totaling $1.4 million

When: Thursday, Feb. 15

Where: Available for phone interviews (Please see contact information)

Why: Microsoft, through education and legal actions, strives to protect consumers and the honest distribution channel from the negative effects of software piracy.

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