MS mashes misbehavers

By Staff Writer for Microsoft
Johannesburg, 25 Apr 2008

Microsoft has cracked down on 21 South African dealers found to be selling computers loaded with unlicensed Microsoft software.

The global software vendor has reached punitive out-of-court settlements totalling hundreds of thousands of rands with the businesses.

"The crackdowns are part of Microsoft`s Genuine Software Initiative, which aims to help protect legitimate distributors and customers from the effects of software piracy," says Microsoft SA partner executive Mark Reynolds. He adds that piracy steals business opportunity and ultimately jobs in the channel.

"We want to protect legitimate computer businesses and resellers who do the right thing in selling genuine software," explains Reynolds. "Microsoft won`t stand by and allow unscrupulous vendors to destroy the businesses of our channel partners or the jobs of their employees."

Reynolds notes that those who think pirating Microsoft software only hurts Bill Gates are wrong. He says every R1 that Microsoft earned in 2007, earned its legitimate partners R9.69. Therefore, every R1 stolen from Microsoft took R9.69 out of the pockets of the multinational`s channel partners - nearly all small or medium businesses - because legitimate software vendors have difficulty competing with the low prices offered by software pirates.

Additionally, those low prices come at a high cost to consumers.

"Hard-disk loading is one of the most common forms of piracy," warns Reynolds. "What might be seen initially as a saving is actually a loss in the long run. Illegally loaded software is not upgradeable, users will not receive support and there is always a threat of a virus wiping out their computer`s hard drive.

"Genuine software users enjoy a range of benefits, including access to greater capabilities and easy integration with a variety of hardware, software and services," says Reynolds. "Genuine, licensed users of software are able to access the latest product features, updates and ongoing improvements to keep their PCs performing better.

Piracy remains an issue

"Microsoft`s actions, in coordination with law enforcement agencies and other associations, represent an important initiative in our ongoing effort to protect customers, partners and our intellectual property from dishonest dealers," continues Reynolds.

Business Software Alliance SA chairman Alastair de Wet says the software industry is a significant driver of economic prosperity in SA. A recent IDC economic study postulated that SA`s hardware, software and IT services spend now stands at R61 billion and the domestic industry employs more than 355 000 people.

However, software piracy threatens the ability of the software industry to continue contributing to the economy. The IDC`s 2006 Piracy Study found that business application piracy cost commercial software publishers R1.117 billion in SA that year. The reported piracy rate in the country that year was 35%.

"Piracy remains one of the major hurdles to realising the potential of the information economy in SA and on the continent," adds De Wet. "There is great concern for our local economy that over a third of software in use is illegal."