The Chinese Connection

Throughout the summer, the Chinese authorities raided factories in southern China were pumping out thousands of illegal copies of Microsoft and Symantec anti-virus software. In short, the officers seized a total of 500 million US dollars of counterfeit software and certificates of authenticity (COA) of such high quality are reportedly almost difficult to distinguish between legitimate cargo. At the same time, the FBI raided more than 24 sites in the United States, where it is estimated that 70 per cent of the software from China is headed.

The authorities to take action to launch action, Microsoft relies on large dose of cooperation from Microsoft partners. In fact, company officials said, "Score" cooperative partnership has played a certain role. The development of technology and business practices more and more partners involved in piracy activities. Stance and some authorities say a few words to find its own development plan and pirates.

Massive international counterfeit banknote syndicate "This case is a milestone in the fight against software piracy - national governments, law enforcement agencies and private companies work together with customers and software resellers, a break massive international counterfeiting ring for, "Brad Smith, senior vice president and general counsel for Microsoft, said in a statement. Zhu Finn, Microsofts deputy general counsel for the rest of the world anti-piracy and anti-counterfeiting, piracy ring led to describe the production of high-grade counterfeit Microsoft products. In a formal response to the circumstances, the company said: "countries around the world are expected to be significantly reduced, the volume of counterfeit software is a direct consequence of this action." The Chinese Government has not issued an official statement to recognize or describe anti-piracy enforcement actions. According to the FBI has not yet released the official July 23, Chinas Ministry of Public Security (MPS) raided the business and residential locations throughout southern China, with major facilities in Shenzhen, which is the recent Hong Kong and Shanghai. The Ministry of Public Security arrested 25 people and seized 7 million US dollars worth of assets and 290,000 counterfeit software CD-ROMs and the COA estimated value of 500 million US dollars.

With the FBIs assertion that about 70 percent of the counterfeit software is headed by, for the United States , the FBI Los Angeles office of the coordination of two dozen raids, seized 2 million US dollars of counterfeit software and value of about 700,000 assets.

In short, counterfeit Microsoft software surfaced in 27 countries on every continent, South America and Antarctica. Authorities confiscated counterfeit versions of 13 different Microsoft products, including Windows Vista, Windows XP, Microsoft Office 2007, Microsoft Office 2003 and Windows Server.

Microsoft, which devoted its own resources into the investigation for many years, the United States has gone beyond the federal investigation The estimated value of the seized software hazard a guess the total amount of software piracy ring have more than their criminal career. Microsofts conclusion: "The group is allegedly responsible for the production and sale of more than 2 billion US dollars worth of counterfeit Microsoft software." According to Microsoft, there are more than 55,000 copies of the advanced high-quality counterfeit software was traced back to southern China criminal gangs. Microsoft officials argue that 55000 disk constitute less than 1% of the millions of counterfeit copies, the Group production. As apparent longevity of the groups operations and its size, the estimated 2 billion US dollars may be conservative.

Summer solstice Microsofts 75-member anti-piracy team had been tracking the Chinese group, as early as in 2001, pirated optical discs appear in Southern California, according to published reports.

Like technology companies, like the FBI code name of the IAEAs nickname for this action "summer solstice" According to the FBI, the summer solstice did not start until 2005.

There is no doubt that Microsoft has been mixed, from the beginning for law enforcement involvement, but until recently, obviously do not have much traction and Chinese law enforcement.

Key situation provides a vivid example of the two software vendors setbacks and the United States Administration faced with trying to obtain intellectual property (IP) in accordance with the law enforced in China. MA Ke Pei indicted in New York, in 2003 on suspicion of distributed about 15 billion US dollars of pirated Microsoft and Symantec products for a period of two years. Rather than face prosecution, he successfully fled the country and be able to not only go unpunished, the United States authorities and, allegedly, to set up a headquarters in Shanghai piracy operation, the focus of counterfeit Symantec antivirus software. In July this year, Ma Ke Pei belonging to those arrested by the Chinese authorities, they seized five of his real estate projects and 50 million in other assets.

What happened there Shanghai Ma Ke Pei supply organization, allegedly counterfeit Symantec software distributors, in the United States arrested: MA Ke Pei and 10 others seized : 500,000 US dollars of assets, properties 5 Shenzhen authorities identified 14 major manufacturers and distributors, in Shenzhen, near Hong Kong arrested: Wang wenhau, Che-hung tingfeng and 12 other seized: 47,000 counterfeit Microsoft CDs, eight high-quality counterfeit Microsoft CD copy the CD-ROM removed: 6 manufacturing and retail facilities Beijing Customs seized shipments, including fake disk Chinas two faces China has two public image. One is an autocratic state, the central government asserted that it control everything. The other is the "wild west" of the landscape and the rapid industrialization and local autonomy, the central governments decree is often in the city with a small weight. No more information, MA Ke Pei circumstances, it can not say which one of the prevailing circumstances, let him immunity for a period of four years, from intellectual property law. According to ease , chief research officer at research firm IDC and coordination of the author of the book, the pirates digital millennium: how intellectual property war damage our personal freedoms, our work, and the world economy (Financial Times journalist, 2005), adequate anti-piracy laws have been put in place in China for a long time. Eager to do some stealing, and what has changed.

"Some things happen once. China to clean up their act because it is the Olympic Games to Beijing in 2008 and its image has been damaged, from the poison pet food "and similar crisis has become a cruel spotlight of the Chinese enterprises and industries in the last few months, the difficulty said.

In addition, he said, the image of Microsoft and its chairman, Bill Gates, has been ascendant, in China, influencing public opinion, the software piracy activities.

75 people in Microsofts anti-piracy team is not the only contribution made in the Microsoft case. More subtle ways, Gates does not help to clarify the manner, at the highest level of government for this and other intellectual property rights enforcement action. In April 2006, when Chinese President Hu Jintao visited the United States the first time, he is the first leg of Microsofts campus, after the dinner, Gates 100 million US dollars home. The topic of dinner, their conversation were not revealed, Gates said, before the visit, "We are encouraged by Chinas efforts to strengthen intellectual property protection, which will provide the basis for the continued expansion of the IT industry in China." .

Despite MA Ke Pei For example, the ease of people said that the recent arrest is not a example, the Government of rounding the usual suspects. "It has hurt others, for real," he says. "This is not a matter of the window, everyone go home." Come to the United States as any competent computer entrepreneurs, pirates used channel to get their products to customers. Of the route disk from the factory floor, Guangdong Province of the United States, desktop computers, notebook computers and servers through multiple dealers - some w itting and some knowledge of accomplices.

Central shipments of counterfeit products around the world. Customs officers have seized thousands of disk in Beijing, Cairo, Egypt, New York, London, Vancouver, British Columbia, Canada, Hamburg, Germany and other major cities.

Red flag technology is not always enough clues to spot counterfeit software partners must use their knowledge of the business.

Physical security measures, is a good defense against piracy, but they are often not sufficient.

Microsoft proud to the physical changes, which have made the disk and the authenticity of the certificate in order to foil pirates , such as wavy edge to DVD, dynamic three-dimensional maps, embedded holographs and security patches indicating that the "real" word, disk tilt. But change is not always enough, and even advanced observers, in order to catch up with that Michael beare, channels director for the Microsoft genuine software initiative.

"We have spent Microsoft executives take a look at our software and counterfeit copies, they can not tell the difference, "said beare. If Microsoft itself does not distinguish fake from the real thing, what is the partner for what? There are several red flags local distributors and other resellers can beware. Most involve business acumen, rather than high-tech: extraordinary challenging market , it is a very serious sales environment, early warning said that the people in your immediate market, is a fraud.

"I have just met on this in a cooperative partners, and they are trying to sell dynamics, "beare said. "They are trying to invoke an agreement, they also have a difficult time holding of competitive quotations." If you encounter such a situation, the associated partners Account Manager (PAM) help beare advice. "Mobility System, and there are more than ready to sit down to resolve this, we also receive a lot of reports in this way." Incredibly attractive prices If the price from the distribution of Microsoft software looks good to be incredible, it is a good opportunity, this is - at least from a legal point of view, b eare said.

And shoddy document " the way some of us have been able to rebound, reported by the spelling errors, in the manual or improper English to be used, "said beare. Another red flag: Website failure. "You must know that this is one thing should be easy enough replication, but this one seems to be counterfeiters those areas where there are problems." Customers warning you should do our utmost efforts fail, your client has warned non-licensed software in their sudden appearance desktop, you still have choices.

"In some cases, this may be because the customer has been using the "beare said. "To help a customer, we do not want to see the partnership, can be done. In this case, the report occurred and high-quality software to the Microsoft, we will look at compensation for the customers. " This is a question on behalf of your client, But do not expect too much. Asked how often Microsoft has actually compensate customers, beare said, "I have to say that, with several of its time. Almost bushels. "-S. B.

who first possession of the disk, in the United States, where the majority of shipments for the head, it is unclear. The FBI Los Angeles office, the office responsible for overseeing the two dozen raided the site in the United States, will not say whether distributors are independent partners in the United States or by working out of facilities owned by the Group.

"The case is moving toward the prosecution, and we just do not comment on the case while it. in the prosecution stage. We will not be able to provide any further until the case has been prosecuted, in the course of its operation, said: "The Secret Dingshimishi Los Angeles FBI office. (Thom thousands of such controlled by, the spokesman for the Federal Prosecutors Office in the central region of California, he said, as of the end of September, no cases have been submitted to the Federal Court of Appeal.

According to the FBIs public statement at the time of the operation, the China-based distributors "advertised own products, and actively recruiting distributors via the Internet. " Michael beare, the channel Supervisor Microsoft genuine software initiative, said that system builders - mostly smaller partner organizations, assembled personal computer and server components - is the main target for the distribution of counterfeit products. an estimated 15,000-20,000 system manufacturers in the United States, operating margin is sensitive, because in any industry.

"The majority of the [piracy] after the builders of a system, eBay or e-mail advertising things like a Warehouse closed, "beare said." copy obtained very good. under certain circumstances, the product looks just like the real thing. system built on the margin of human life is very, very tempted, # 39 It looks like Microsoft. I will not ask too many questions, but also useful. " According to Microsoft, more than 100 dealers participated in the down to the group.

Microsoft channel partners magazine dealers were involved in the case declined from Microsofts public relations firm, which cited concerns threaten to prosecute cases.

However, dealers described the company as "played a key part" in helping to trace counterfeit software. dealers to provide e-mail messages, invoices and payment vouchers moved in the survey, beare said.

cooperation in a variety of forms. some partners voluntarily submitted solicitation and other e-mail, Microsofts goal is to remind the "mysterious shoppers", the Microsoft employees posing as customers or resellers and purchase software directly from the pirates, to collect evidence. other accomplices were caught selling illegal software, and squeeze Progressive participating in the investigation. "That needs of the" beare said. "no preliminary reports from those who turn in these e-mail, or that they could not take part in the competition, we would not have a trigger. needs of the shape of the follow-up mystery shopping or how matter is clear. since then, it has begun to enter the building of. " partner of Microsoft portrays law enforcement to crack down on piracy ring for a win-win for its Windows Genuine Advantage (WGA) program, The objective is to raise awareness, thousands of consumers for their copies of counterfeit Microsoft software, and provide clues for the company to investigate the case. less media attention focused on the case to the success of the WGA, but -- as well as any positive bump for Microsofts "phone home" piracy check cast a more negative events, Microsofts W GA checks, the emergence of infrastructure, for more than nine hours in August a weekend, shutting down part of the Vista user functions, and warned XP users, and their copies of Windows may not really. WGA is still a bad became mixed, as a partner.

Despite lingering unease in the community cooperation partners of the service licence, the police for Microsofts software asset management initiative and difficulties in the efforts of partners should be regarded as the trusted adviser, partners generally warm applause and the anti-piracy efforts, which led to the recent arrests.

"I love how they are doing, and said:" Matt sherocman, vice president of advisory services, the proprietary Chinese medicines datafit, Gold Certified Partners in Cincinnati. " selfish, as a partner, sales permission, I would like to buy software, and network compatibility. " sherocman that drop functionality in Vista brought some new business to his door. "This is a very heavy - Microsoft attached great importance to the users PC, has become a piece of town, you can copy data takeoff. We have a number of customers in the United States after the WGA [Close them down, "he said.

The new business is good, sherocman said that he found the customers at the right to obtain licensing to not be good, in any case. "I tend to disengage, and they become our customers, and if they do not abide by the ethics . " any VAR will cooperate to combat piracy, sherocman said:" I think this is entirely lawful. VAR right and the obligation to protect industry, we take advantage of the work. " Scott (Braden, the licensing analysts and repeatedly criticized Microsofts licensing practices, Microsoft also supports the crackdown efforts. "That is too simple. dealers have the responsibility and obligation" to tie in with Microsoft, The turning point in pirated software, (Braden said.

global decline? Central is large enough, Microsoft officials expect a short-term decline in the provision of high-quality pirated software. medium-term outlook is mixed, but long-term prospects are quite good rejects piracy rate, the experts said.

to 55,000 persons and the seizure of Microsoft disk, Microsoft reported that there are nearly 1 million Microsoft disk counterfeiting has been detained in the past 18 months, only by the authorities around the world. Despite the recent seizures made a very small percentage of this total, they represent a much higher percentage of high-quality products. "high-quality", there is a specific meaning, in the software piracy activities. pirates to divide Microsoft into three levels - low-quality, high-quality, high quality, with the highest level was considered to be the most difficult of the two production and testing.

IDC agreed that the difficulty arrests are not enough, make an impact, but added that the high quality of piracy will gradually resume offensive quickly - if they do not already.

" China is the largest supplier of pirated goods. Russia, Chechnya and Ukraine also have large vendors, "said the difficulty level." this is one where one person, it is too easy to find production again unless they are introduced a set of distribution channels. its safety and drugs, less severe penalties. " Nevertheless, the difficulty that the world piracy declined in 2007 and the future, as the convergence of several factors.

1, software vendors are dealing with the public relations battle software piracy were relatively good, and ease that they also monitor and record the efforts of the film industry, in his research work.

, "the software industry seems to be take care of business, in a move forward in an orderly manner, I do not know about movies and music," Difficulty said. be part of the Microsoft credit for his view: "They are not heavy, high-handed, but there are still tensions. [WGA server blackout] is a black eye," he says. " simple permit system will help them may require more than they need the WGA. " Other positive trends, in order to reduce piracy, including the improvement of relations, including major software vendors and the local original equipment manufacturers in developing countries have the right to choose whether or not to install pirated software or legitimate software development trends and replace tables on computers and laptops, it is more difficult things of forged components, Difficulty Level said.

Finally, in many countries, the Government is taking measures to join the World Trade Organization, and to establish local software industry, he said. "there is a local software industry, so you can not be pirated. how are you going to compete, 200-word processing products? "Difficulty Level asked." Government can be 6-10% of the market, and set a good example. " As uncomfortable and challenging because the current climate of piracy, as a partner, it may ultimately prove to be a short-term problem.