Microsoft Corp. and the U.S. Customs Service yesterday announced
recent criminal actions taken against two businesses based in
Georgia, USA, for the alleged distribution of counterfeit Microsoft
software.
US Customs officials searched the premises Compunet Systems and
Tierra Computer Inc. and uncovered large quantities of counterfeit
Microsoft software with a total value of nearly $1 million.
Both companies are subject to criminal penalties for trafficking
in counterfeit goods. Under federal trademark law, criminal
penalties include fines of up to $2 million and 10 years in jail
per infringement; federal copyright laws include fines of up to
$250,000 and five years in jail per violation.
The investigation and raid of the companies was the culmination
of investigative efforts by the US Customs Service and Microsoft in
response to reports received about the illegal activities of the
two companies. Based on these reports, investigators conducted a
series of sample test purchases from the companies, the results of
which confirmed they were distributing illegal software.
The US Customs Service has seen a steady increase in the seizure
of counterfeit or pirated goods. In 1999 alone, Customs seized more
than $98 million in counterfeit merchandise.
