BSA Bids Against Online Auction Software Pirates.

Business Editors/Hi-Tech Writers

WASHINGTON--(BUSINESS WIRE)--Nov. 14, 2000

Files Lawsuits Against Individuals in U.S. and Europe for Peddling

Pirated Software on Auction Sites; Watchdog Group Warns

Bidders...Beware of Auction Scams

In yet another move to curtail online software piracy, the Business Software Alliance (BSA) today announced it has filed lawsuits in the U.S. and the United Kingdom and brought enforcement actions in Germany, charging dozens of individuals with selling pirated and counterfeit software on popular auction sites, including Yahoo, Ebay and two European auction sites, QXL and Ricardo.

BSA estimates that more than 90 percent of the software sold on auction sites is pirated, contributing to the $13 billion in lost revenues suffered by the industry annually.

BSA's actions are the result of an investigation by its Online Investigative Unit into the marketing of pirated and counterfeit software on Internet auction sites in the U.S. and Europe.

Coined "Operation Bidder Beware," the investigation tracked the sale of pirated or counterfeit software from vendors in California, New York, Florida, Illinois, Pennsylvania, Virginia, Missouri, Oregon, Georgia, the United Kingdom and Germany. Each of the 13 defendants in the U.S. face damages of up to $150,000 per work infringed.

"Many of the people who once sold pirated software programs at flea markets have now moved to Internet auction sites in the hopes of reaching online consumers," said Bob Kruger, vice president of enforcement at the BSA.

"Through actions like `Operation Bidder Beware,' BSA aims to help stem these sales and raise awareness among consumers of the risks of buying software on Internet auction sites. In the great majority of cases, what you see is not what you get, and what you get is illegal."

"Software piracy on auction sites and the Internet as a whole is a growing problem," said Beth Scott, vice president of BSA Europe. "Through `Operation Bidder Beware,' BSA is sending a strong message to consumers worldwide that auction sites are a dangerous venue for buying software products."

BSA identified the vendors for its actions through the purchase of software products advertised on auction sites, at a fraction of their retail price. In the U.S., for example, BSA paid approximately $1600 for programs that retail for more than $50,000.

After examination of the evidence, BSA filed civil actions in federal court in the U.S. Among the pirated and counterfeit programs purchased by BSA were products published by Adobe, Autodesk, Corel, Macromedia, Microsoft, Network Associates and Symantec.

The Federal Trade Commission recently announced that Internet Auction Fraud is among the top ten online scams. With an estimated 55 million Americans expected to shop online this holiday season,* consumers should be aware of the dangers of purchasing software on auction sites. Here are tips to help consumers ensure they are purchasing legal software on auction sites:

-- If a price for a software product seems too good to be true, it probably is

-- Be wary of software products that come without any documentation or manuals

-- Beware of products that do not look genuine, such as those with hand-written labels

-- Watch out for products labeled as academic, OEM, NFR or CDR

-- Beware of sellers offering to make "back-up" copies

-- Be wary of compilations of software titles from different

publishers on a single disk

-- Check with organizations such as the BSA should you become a victim of software fraud

Today's announcement adds a new dimension to BSA's on-going Internet campaign. Over the past several years, BSA has filed lawsuits against individuals for pirating software in an IRC channel, shut down thousands of warez web sites, and worked closely with law enforcement to promote criminal prosecutions.

In addition, today BSA unveiled its new global website, www.bsa.org. Visitors may obtain information about its anti-piracy programs or download audit software or a free copy of the "Guide to Software Management."

Since 1988, the Business Software Alliance (BSA) has been the voice of the world's leading software developers before governments and with consumers in the international marketplace. Its members represent the fastest growing industry in the world.

BSA educates computer users on software copyright; advocates public policy that fosters innovation and expands trade opportunities; and fights software piracy. BSA worldwide members include Adobe, Apple, Autodesk, Bentley Systems, CNC Software/Mastercam, Corel Corporation, Macromedia, Microsoft, Network Associates and Symantec. BSA websites: www.bsa.org; www.nopiracy.com.