Microsoft cracks down on academic software racket

Microsoft has cracked down on an academic software racket, which involved overseas companies smuggling cheaper academic versions of software packages to the US where unscrupulous Internet retailers sold them to unsuspecting retail customers.

Microsoft has filed nine lawsuits and issued more than 50 cease and desist letters. The lawsuits were filed in federal courts in California, New York, New Jersey, Florida, Nevada and Montana.

According to the allegations in Microsoft’s lawsuits, companies in Jordan and elsewhere have made millions of dollars in illegal profits by trafficking in hundreds and thousands of copies of specially priced academic software diverted from education programs. This software was sold to Internet retailers in the US, who in turn passed it off to consumers who unknowingly lacked the license to use it.

EDirectSoftware.com, one of the largest offenders, has already agreed to settle Microsoft’s lawsuit out of court for more than $1 million in cash and property. EDirectSoftware.com specifically promotes its “competitive prices on genuine software” and “web’s best deals on genuine software”.

Other merchants that received cease and desist letters have agreed to voluntarily stop selling the software, which is clearly marked “Student Media” and “Not for retail or OEM distribution. Not for resale.”

Microsoft says that calls by consumers to its anti-piracy hotline (800) RU-LEGIT (785-3448) helped it to identify the culpruits. You really do have to wonder how the Internet retailers thought that they’d get away with this racket when they sent out hundreds of thousands of copies of software to consumers that was marked labelled as being for academic use.

“To those who say software piracy is a victimless crime, I would say this case tells a different story,” said Bonnie MacNaughton, senior attorney at Microsoft.

“The defendants in these lawsuits and others are charged with profiting from selling clearly marked educational software to unsuspecting retail customers who were not licensed to use it — and potentially depriving students and schools of the opportunity to benefit from the latest technologies.”