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The Courts Microsoft Piracy

Microsoft Files a Copyright Infringement Lawsuit For Activating Pirated Software 268

First time accepted submitter Esra Erimez writes Microsoft has filed a complaint at a federal court in Washington accusing person(s) behind an AT&T subscription of activating various pirated copies of Windows 7 and Office 10. The account was identified by Microsoft's in-house cyberforensics team based on suspicious "activation patterns." Despite being one of the most pirated software vendors in the world, Microsoft doesn't have a long track record of cracking down on individual pirates. From the descriptions used in the complaint it seems likely that the target is not an average user, but someone who sells computers containing pirated software.
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Microsoft Files a Copyright Infringement Lawsuit For Activating Pirated Software

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  • Let's have some outrage over creators seeking to, gasp, control their creations — and be paid for their use.
    • I don't think there will be much outrage from people who understand that back-alley shops stay open by ripping off everyone, including their customers.

      It's how they stay in business, since they obviously don't have the skills to do business legitimately.

      • by mlts ( 1038732 )

        Interesting that TFA talks about an activation key likely misused/abused.

        I'm sure the shop has the skills to operate legitimately. An OEM version of Windows mainly requires a sticker to be peeled from the back of the DVD case and slapped onto the machine, and that one OEM copy of Windows goes out per machine sold. Not rocket science. Here in the US, $130 is the "retail" charge for an OEM copy.

        IMHO, this is a non-issue.

        • The "suspicious pattern" is back-to-back activation of Windows 7 and Office 2010 from one ip, then the machines being dispersed to other ips as the customers take them whereever. Not all legit customers are going to buy/activate Office, whereas any place that sells only machines with copies of both win7 and office2010 pre-activated is suspicious.
        • OEM copies of Windows (pre-Windows 8) generally aren't activated online, they use OEM SLP or SLIC keys paired with an installed certificate and OEM BIOS marker. Unless you install with System Builder or retail media, the restore discs/recovery partition image that come with OEM machines generally come SLIC activated. That being said, the Windows 7 keys on the side of countless OEM machines have never been activated against Microsoft's systems. It could even be the source of this person's keys.

          This all chan
        • by Lumpy ( 12016 )

          $130? I've been getting legit OEM copies from Newegg for $99 with purchase of a mouse or keyboard. Paying $130 is insane and dumb for anyone that does not need the ability to join a domain.

      • Yup. I've seen more than my fair share of people with computers stuffed to the socks. "So you say this laptop loaded with Windows 7 Ultimate, MS-Office Pro and Photoshop only cost you $300. Hmmm..."

        • We had one guy like that around the turn of the century. He'd "custom-build" computers loaded to the gills. The problem was he knew nothing about computers. All of a sudden he's complaining because "AMD CPUs are crap. None of them boot into Windows." He was booting the computer to test it before adding the CPU fan, and those Thunderbirds ran hot.

          Someone told him to ask me what was wrong, and what he could do to fix it, and I said "Concrats, you now own a very very fast 16-bit DOS machine. Enjoy DOOM".

    • Despite being one of the most pirated software vendors in the world, Microsoft doesn't have a long track record of cracking down on individual pirates.

      Emphasis mine.

      Sent from my pirated copy of FreeDOS.

    • That's so 1976-ish [wikipedia.org].
      • That's so 1976-ish.

        Any attempt to oppose an idea on the grounds, that it is "too old", must demonstrate, how the time has changed the argument. See also, the "Appeal to novelty" fallacy [wikipedia.org].

        The possible exceptions are arguments over things, which are illogical by their very nature — such as clothing- or hair-styles — the domain, where, I believe, the very notion of "this so yesterdayish" originated.

      • by mysidia ( 191772 )

        These days, we have high quality software already made, And the open source revolution has shown us that it is poppycock, the claim that you need the proceeds of extortionate licensing fees in order to build high quality software.

    • by Opportunist ( 166417 ) on Monday December 08, 2014 @04:54PM (#48550695)

      Why? If you want to use Software that is not free, you're supposed to pay for it.

      The only thing that really pisses me off is that when they think you had to reinstall your copy a few too many time you become a frequent participant on their Indian call-in show...

      • by mi ( 197448 )

        Why? If you want to use Software that is not free, you're supposed to pay for it.

        This sounds just as — indeed, indistinguishably — logical to me as "If you want to listen to music that is not free, you're supposed to pay for it". Or "If you want to watch a movie that is not free, you're supposed to pay for it."

        And yet, the prevailing opinion on /. remains, that creators wishing to control their creations (or sell such control to others) simply shows them to be greedy and their attempts —

        • by Opportunist ( 166417 ) on Monday December 08, 2014 @05:12PM (#48550867)

          It's one thing to pay for a movie if I want to watch it. That's pretty much the way it should be, you create something, you get compensated for me using it.

          It's another thing if I pay for the movie and then have to jump through additional hoops to watch it, and I can only watch it the way the creator wants me to. If I pay for something, I expect to be able to use it. As I please. Not as its creator pleases.

          • I think the breakdown between reasonable parties on difference sides of the discussion is about what "buying a movie" means.

            Many of us would prefer to own, perpetually, a copy of the movie which we could use freely in any non-public performance forever without additional necessary license. Some of us, OTOH, are happy to rent a movie, like we do with a lot of digital downloads.

          • It's one thing to pay for a movie if I want to watch it. That's pretty much the way it should be, you create something, you get compensated for me using it.

            It's another thing if I pay for the movie and then have to jump through additional hoops to watch it, and I can only watch it the way the creator wants me to. If I pay for something, I expect to be able to use it. As I please. Not as its creator pleases.

            Simple solution - don't use it. Problem solved.

            Your movie analogy - sitting in a theatre watching ads before the movie is part of the "experience"; you don't get to watch it your way.

            • by xevioso ( 598654 )

              I can choose to enter the movie theater just as the ads are over...

              • I can choose to enter the movie theater just as the ads are over...

                And getting a crappy seat. Is that how you want to watch a movie?

                • by Lumpy ( 12016 )

                  crappy seat? we have reserved seats here. I get to eject the fool that is sitting in my seat.

          • by mi ( 197448 )

            If I pay for something, I expect to be able to use it. As I please. Not as its creator pleases.

            Why not? Why should the creator not be able to impose any restrictions they damn please? As long as they aren't in a position to prevent you from rejecting their entire creation, they ought to be able to attach whatever strings they want. If you don't like the software/movie/song enough to accept the terms, you remain free to act as if it was never written...

            I, for example, strongly dislike Microsoft software

            • by xaxa ( 988988 )

              Why not? Why should the creator not be able to impose any restrictions they damn please? As long as they aren't in a position to prevent you from rejecting their entire creation, they ought to be able to attach whatever strings they want.

              Many countries have laws preventing unreasonable contracts, and judges that will often side with the consumer when a contract is intentionally misleading etc. These terms would need to be made very clear, and the price reduced too.

              • And the price needs reduced? Wha?

                I agree, completely, that a content producer should disclose the full terms of the sale, or license, or viewing/screening/performance.

                ...but if I say the Aerosmith tickets are $500, and disclose exactly what seats those entail, what you're allowed to carry into the venue, and what time you can arrive and how long you can stay -- who are you to say that I can't charge $500 as long as people are willing to pay the price.

            • Why not? Why should the creator not be able to impose any restrictions they damn please?

              If that those restrictions are clear before I buy, they should be able to impose them. But if I don't find out about the 20 minutes of unskippable commercials, until after I insert by purchased DVD, then I have the moral justification to watch a few pirated movies from the same studio to get even.

              • You have the moral justification to return the film unwatched.

                • by msauve ( 701917 )
                  Sure, as long as he receives adequate compensation for the time, effort, and resources he went through for that return. For me, the value of the time, effort, and mileage needed to return a DVD would be far greater than the selling price of most DVDs.
              • by mrbcs ( 737902 )
                I have hundreds of dvd's in my house. Each one is either ripped or a torrent downloaded from Piratebay before I watch it.

                The Canadian laws say that a content provider (copyright holder) is only allowed to sue me for the value of the lost products (lost sales).

                Since I can show a legally purchased dvd, there is no loss. No charges will ever stand up in court. We also have the right to own dvd copyright protection removal software.

                This is my way of using what I bought the way I want to. I totally agree w

            • Why not? Why should the creator not be able to impose any restrictions they damn please?

              Largely because of the first-sale doctrine [wikipedia.org], which codifies property rights sanity: if you sell me something, it is now mine, not yours. I can do whatever I want with it. Use my spatula as a screwdriver? Use a thermos bottle for a hammer? Watch scenes in a movie out of order? It's none of your business. I bought it. It is now my property, and I'm free to do with it as I please.

              (Averting pedantry: of course that doesn't involve violating copyright. Straw men will be ignored.)

              • by radish ( 98371 )

                And I honestly don't think Microsoft are trying to control what you do with their software. At least, I've never seen anything like that. All the licensing stuff is about proving you actually did buy it, and thus proving that the first sale doctrine even applies. It's a nuisance for sure, but I'm not sure what the alternative is. That said, as a 20+ year user of their products I've had to call for a license activation precisely once and it took maybe 60 seconds. I can live with that.

            • Why should the creator not be able to impose any restrictions they damn please?

              Why should the rest of us aid them in doing so? E.g. by conferring upon them some sort of legal rights that pertain to how the work is used by others.

              While I think it could potentially be beneficial for the public to grant rights to authors, it's surely not always beneficial under every circumstance, and every permutation of works and rights.

              And if the author doesn't like the terms under which the public might deign to give them rights, they're free to not create the work.

        • by Lumpy ( 12016 )

          Yet I don't. Nobody makes me pay for the FM radios stations, and I change to another when the commercials come on. Same goes to TV when they play movies. I don't pay a dime and I leave for the kitchen or use the computer when ad's come on.

          Therefore I meet the requirements of "dirty rotten pirate"

      • I've never run up against it. I activated about two dozen copies of education-licensed versions of Office 2007 a few years ago, and the auto-activation failed after the first install. After that, I had to call a 1-800 number, give an automated service the installation key and it barfed out an activation key... over and over again.

    • by jedidiah ( 1196 )

      You don't get to "control" your creations. That's not what COPYright law is about. It's about COPYing. "Control" is something entirely else beyond the scope and intent of intellectual property laws (at least in the US).

      • by mi ( 197448 )

        It's about COPYing. "Control" is something entirely else

        Distinction without difference. Thanks for playing.

        • Bullshit. Devising a counterexample is so utterly trivial that I leave it as an exercise for the reader.

          • by mi ( 197448 )

            Devising a counterexample is so utterly trivial that I leave it as an exercise for the reader.

            You are not writing a textbook (which your students will be compelled to buy) here, professor.

            Do put your arguments forth yourself, or get out. Put up or shut up, so to speak.

          • That's an interesting way of saying you can't think of one.
      • Actually, there' something called "moral rights" in copyright law that allows the copyright holder to prevent you from, for example, buying an art book with a bunch of nice pictures in it, cutting out and framing all the pictures, and reselling the framed pictures.
        • by Kjella ( 173770 )

          Actually that would probably go under derivative works since you could sell those rights. The key thing about moral rights is that in most jurisdictions you can't sign them away. For example say that you sell the rights to a film based on your book, but they totally change the story to the point it violates your artistic integrity then in Europe you have a good chance of getting it stopped. Or someone buys the rights to a song from you and use it in nazi propaganda or rape porn or whatever, basically it's a

        • by msauve ( 701917 )
          That's an odd example, since many of the art books I've seen are full of reproductions made without the permission of the original artist. Why should the compiler of that book have more rights than the descendants of Van Gogh, Rembrandt, etc.?

          Similarly, I find the continual extension of copyright terms pushed by Disney, et al, exceedingly hypocritical - Disney built its business from freely copying the works of others - the Bros. Grimm, Hans Christian Anderson, Mark Twain, etc. Now, they want to hold our c
          • Van Gogo, Rembrandt, and their contemporaries have been dead for quite a while, and copyright was much more limited (or non-existent) then.

            Here's another limitation of fair use [gigaom.com] - you can't resell anything covered by copyright that you've imported from elsewhere..

            here you go [google.com]

            The court in this case held that it was against the law to strip the individual pictures from a book and, in effect, create derivative works.

            • by msauve ( 701917 )
              Walt Disney has been dead for quite a while, too. Shouldn't Mickey Mouse, then, be in the public domain?

              The cited case is nuanced - it hinges on derivative works - "As we have previously concluded that appellant's tile-preparing process results in derivative works and as the exclusive right to prepare derivative works belongs to the copyright holder, the "first sale" doctrine does not bar the appellees' copyright infringement claims."

              The defendant was placing the original printed images on ceramic tiles,
    • by mark-t ( 151149 )

      Creators have some natural control over their creations, which they could theoretically maintain indefinitely by keeping whatever they had created to themselves, and never allowing anyone else to see it in the first place. Barring independent invention, it's a fairly natural exclusivity that copyright is simply an extension of, and which coincidentally encourages a creator to publish, as long as society abides by the social contract that they will respect the creator's intentions.

      Care to take a guess ho

      • Care to take a guess how many people would willfully publish their stuff if everything that they published had to become public domain?

        Well, that's how it operated in the US from 1790 through to the end of 1977. Turns out that relatively few published works were copyrighted. Further, since there was a renewal term (that is, the copyright would be good for an additional number of years if you re-upped in a timely fashion) we also know that most authors of copyrighted works didn't bother to get a renewal, and let their works enter the public domain sooner than they had to.

        It worked fine. We got great literature and the golden age of Hollywoo

    • Let's have some outrage over creators seeking to, gasp, control their creations — and be paid for their use.

      More like... creators getting angry that the business model they've created is basically impossible to control, yet they expect the judicial system do it for them.
      Google, Apple and just about every other OS in the world has already realized trying to charge for an OS is impossible and have moved on... This is just Microsoft providing more evidence that they're a dinosaur left over from the 80s. What are they going to do next? Try and ban Color copiers because they can be used to circumvent their copyright p

    • You want to "control your creation — and be paid for it's use"

      Nope, no outrage here

      You want to create something that has no function that is not available in something else which is available for free AND you want to get paid a whole bunch of money for it...

      Still no outrage. Not my problem, I'll just use the free thing and ignore you.

      You somehow manage to get most of the world using your expensive thing, I now need to use that expensive thing myself because everyone else is and I can't read their stu

  • by magarity ( 164372 ) on Monday December 08, 2014 @04:45PM (#48550617)

    At any house brand computer store in China the computers come windows installed and activated but no disks. If you insist on an install disk the price for it is, amazingly, the same as buying windows retail. The whole activation system is fundamentally flawed, but the question is, how to make it 1) less of a pain for legit users and 2) harder for pirates? These two goals seem exclusive, alas.

    • by Opportunist ( 166417 ) on Monday December 08, 2014 @05:04PM (#48550793)

      The only sensible way I can think of is adding some value to legit copies that is unavailable with the illegal ones. Which is admittedly hard for something like an OS where, say, free lessons or a printed manual aren't such great deal makers and breakers.

      Everything else we've seen in the area of copy protection usually does more to piss off the legit customer than to thwart the illegal copier.

      • by Jahoda ( 2715225 )
        Perhaps Microsoft would sell more copies of their software if they weren't charging for them like it is still 1997.
      • adding some physical value to legit copies

        FTFY.

        Physical resources are scarce. Virtual resources are infinite. People selling virtual goods have all been obsoleted since personal computers became ubiquitous. You see it everywhere, from software to entertainment to information. It's a matter of waiting for society to catch up.

        There is still value in some of these things, just not directly via sales.

    • You might not have noticed but China got extremely angry when Microsoft discontinued support for XP. I believe one of the reasons for this was how easy it was to pirate XP versus newer versions. The XP activation system had been thoruoughly cracked making it trivial to sell computers with XP but no license. Newer versions do not suffer this issue and as a result China's upper brass realized they might have to start paying for windows.

      • by Lumpy ( 12016 )

        windows 7 is dramatically easier to pirate than XP. SLIC activation is trivial to fake.

  • by mythosaz ( 572040 ) on Monday December 08, 2014 @04:48PM (#48550631)

    ...that should be easy to view at work.

    • Re: (Score:3, Informative)

      by Anonymous Coward

      TorrentFreak is a news site, and one of the few that actually does journalism on copyright issues without a blatant bias. It is not a pro-piracy site, it does not host any pirated content. I'm not sure what the problem is, other than the word 'torrent' in the url?

      • Oh god. For a minute I thought you were serious.

        ...even if that WERE true, it's pretty much blocked everywhere with an out-of-the-box web filtering solution.

  • It sounds like a shop that might not be installing windows the right way (sysprep), and instead is using a single product key to activate multiple systems. Either way, if Microsoft didn't like it, then they shouldn't have allowed the activation.
    • I'm sure this has been fixed - or I hope it has, but when I was imaging a lab at a university they had a license server. The admin had just been clicking next on all the automated activtions the available license count went into negative numbers without any sort of alert or warning. I guess maybe it's not a bug, but perhaps a way for MS to come in a few months later and charge a bunch of money because the admin forgot to de-activate the licenses before re-imaging.

      • The key management server that dishes out the activations should have caught that and prevented new installs from activating against it. Although that would be too logical if that was the case.
  • by johanw ( 1001493 ) on Monday December 08, 2014 @05:01PM (#48550759)

    The windows 7 I installed was pre-activated when I downloaded it from the Pirate Bay. Much easier. I don't know if I could legally downgrade from the windows 8 the system had preinstalled but piracy was so easy that I didn't bother to find out.

  • by Quick Reply ( 688867 ) on Monday December 08, 2014 @05:16PM (#48550907) Journal

    When you activate by phone the IVR states:

    "Note: Microsoft Product Activation is completely anonymous; therefore, no personal information is collected. The entire activation process will take about 5 minutes."

  • They do not just mostly ignore individual pirites, they do the same for groups and put 0 effort into locking down their software. Since the very beginning attracting pirates to windows and office has been a major unspoken marketing ploy. No idea if it changed recently, but for many versions the method to crack office was to change a registry key from false to true. And windows hardly even punishes users of unregistered versions of windows.
  • As I understand it, the BSA is largely owned, and controlled by MS.

    In deference to the article's claim that "Despite being one of the most pirated software vendors in the world, Microsoft doesn't have a long track record of cracking down on individual pirates."

    MS has a very long record of such lawsuits, MS just does not file the lawsuits directly.

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