Microsoft Targets Channel Piracy

News Release

For Immediate Release

Microsoft Targets Channel Piracy

Five New Zealand Dealers Agree to Pay Compensation

AUCKLAND, New Zealand - Monday, March 5, 2001 - Microsoft New Zealand today announced that it has reached settlements with five dealers in relation to copyright infringement.

The channel investigation is part of a renewed focus by Microsoft to combat piracy, which, according to the BSA (Business Software Alliance) accounts for 31 per cent of all software in New Zealand and translates to losses of $NZ41 million for the industry.

Alpha Computers, Greensbo Pacific Ltd, D&J Butcher, Midnight Express and @ Computers have signed undertakings not to be involved in the illegal sale and distribution of software again and have paid compensation to Microsoft for copyright infringement after they were found to be selling software illegally.

Vanessa Hutley, Microsoft's corporate attorney said: "Microsoft is adamant that honest dealers and consumers should not have to put up with corrupt channel members luring customers with the promise of bargain basement deals that are simply too good to be true."

"Honest dealers are shouldering heavy costs because of dealers selling illegal software. We are committed to supporting and protecting the genuine distribution community and ensuring a level playing field can be maintained," said Hutley.

Microsoft and other software vendors are motivated to curb piracy because intellectual property (IP) rights are the lifeblood of the software industry. Without the protection of IP rights, the software industry's ability to innovate, employ and positively impact on the economy is severely diminished.

About Microsoft Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software - any time, any place and on any device.

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