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Microsoft software clampdown nets 11 firms

Tom Espiner ZDNet.co.uk

Published: 12 Aug 2009 13:20 BST

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Microsoft has announced that it has reached out-of-court settlements with 11 British businesses over software licensing issues.

The software giant said on Wednesday that it had taken legal action against the small businesses over their sale of unlicensed software.

The companies were accused of practices ranging from counterfeiting to hard-disk loading, which involves using one licence to install software on multiple PCs.

All the businesses admitted to Microsoft that they had broken software-licensing terms as described and are now working with the company to correct their procedures.

Christine Throup, the proprietor of PC Support, was quoted in a Microsoft statement as saying she was glad the company had taken legal action against her Worcester-based business for alleged hard-disk loading.

"It's good to see Microsoft working with small computer traders like us to ensure we're up to speed on the right way to use and sell their software," Throup said in the statement.

"We recognise that we weren't installing Microsoft software correctly, and that's something we take seriously. We'll be working with Microsoft over the next few weeks to make sure what we do falls within their software rules from now on."

Throup declined to comment further to ZDNet UK.

The 10 other businesses that settled with Microsoft were Computer Clinic of Bolton; Computer Port of Walsall; Eazy PC of Redcar; Goldcast Computers and Matrix Computers, both of Stockton-on-Tees; PC Assist of Oldham; Personal Touch Computers of Portsmouth; Platinum Computers of Hartlepool; Spacebar Computers of Liverpool; and The Little Computer Shop of Pontypool.

"The majority of legal action that we take is driven by complaints or leads," Microsoft UK licensing litigator Graham Arthur explained in the company statement. "Microsoft [also] takes down over 250 internet auctions each week."

Over the past 18 months, the software maker has taken legal action against more than 100 high-street shops in the UK. Microsoft will continue to pursue small to medium-sized firms selling or using unlicensed software, Arthur said.

Microsoft declined to reveal to ZDNet UK how much the 11 companies had paid Microsoft to settle out of court.

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