Earlier this week, Eric Lundgren was sentenced to 15 months in prison for selling what Microsoft said was "fake software", but in reality they were only recovery CDs loaded with data that anyone can download for free. The company has now posted a blog post that states "the facts" directly, although it is something of a limited set of those facts.
"We are sharing this information now and responding publicly because we believe that both Microsoft's role in the case and the facts themselves are being misrepresented," the company wrote. But carefully avoid the deliberate error about the software you enacted in court.
That misconception, which greatly exaggerated Lundgren's crime and gave rise to the sentence he received, is simply confusing the software with a license to operate that software. Without going into details (my original publication details) kept in court that the discs that Lundgren was trying to sell were equivalent to full license operating systems, when they were simply recovery discs that any user, restorer or manufacturer can download and burn for free Lundgren I was going to sell them to repair shops for a quarter each to be able to deliver them to the people who needed them.
Almost nobody makes these discs, certainly not Microsoft, and they are practically useless without a licensed copy of the operating system in the first place. But Microsoft convinced the judges that a piece of software without a license or product key, which means that it will not work properly, in any case, is worth the same as a license.
Lundgren has already pleaded guilty to violating Dell's trademark laws by copying the appearance of his discs, but the value that Microsoft convinced the judges of those discs (a total of $ 700,000) led directly to his 15-month sentence .
Anyway, the company is not happy with how it looks to send a man to prison for stealing something that has no value to anyone other than someone with a covert and unguarded computer. Summarize what you think are the most important points as follows, with my comment following the bullet points.
Microsoft did not present this case: US Customs. UU He referred the case to federal prosecutors after intercepting shipments of counterfeit software imported from China by Mr. Lundgren.
This is perfectly true, however, Microsoft has continually misrepresented the nature and value of the discs, falsely claiming that they led to the loss of sales. That's not possible, of course, since Microsoft offers the content of these discs for free. Sell licenses to operate Windows, something that you should already have if you wanted to use the discs in the first place.
Lundgren established an elaborate counterfeit supply chain in China: Mr. Lundgren traveled extensively through China to set up a production line and design counterfeit molds for Microsoft software in order to illegally make counterfeit discs in significant volumes .
Microsoft is trying to make it look like the guy is a criminal genius running a large Windows hacking empire. He literally gave a Dell recovery disc to a duplication store and told them to make exact copies, including the label and the paper sleeve.
Lundgren did not stop after being warned : Mr. Lundgren was even warned by a customs confiscation notice that his conduct was illegal and he was given the opportunity to stop before being prosecuted .
I can not talk to him, but Lundgren told me that the first warning I had was that being chased by someone was when they assaulted his house. The money value of the discs was so small and the counterfeit piece so small (fake labels for duplicates of discs that Dell does not even provide more) that in any case would be a fine and the confiscation of the shipment, not an annual case that alleges millions in damages.
Lundgren pleaded guilty: The counterfeit discs obtained by Mr. Lundgren were sold to restaurateurs in the United States for their personal benefit and Mr. Lundgren and his co-defendant pleaded guilty to federal crime.
Lundgren pleaded guilty to falsifying Dell discs, not falsifying Microsoft software. It is an important distinction because the disks are practically useless and the copyright crimes are condemned according to the value of the infringed article. I asked him about the claim that he sold 8,000 of them to some buyer for $ 28,000, or $ 3.50 each, which would make sense, since any buyer would know that these things can be done for pennies.
Lundgren went to great lengths to trick people: His own emails sent as evidence in the case show the distances Mr. Lundgren left in an attempt to make his counterfeit software look like a genuine software. They also show him ordering his co-defendant to find less demanding clients who would be more easily deceived if people opposed counterfeiting.
Printing an exact copy of a label for a disk is not exactly "large extensions". at the company in China he printed "Made in USA" on the album and "Made in Canada" on his sleeve, and it had a yellow background when it should have been green – that was the kind of thing he was fixing.
Lundgren had the intention to take advantage of his actions: His own emails submitted as evidence in court make it clear that Mr. Lundgren's motivation was to sell counterfeit software to generate income for himself.
The plan was to sell these discs almost worthless-remember, anyone can make one free, for a quarter each to refurbish.
Microsoft has a strong program to support legitimate recyclers and recyclers: Our program supports hundreds of legitimate recyclers, while protecting customers.
The implication is that Lundgren is not a legitimate reconditioner or recycler. He noted earlier, however, that his company, which handles the recycling of Lenovo, Nintendo and others, deals with more e-waste in a year than Microsoft did in a decade.
When a restorer installs a new version of Windows on a renewed PC, we charge a $ 25 discount fee for the software and a new license is not free.
But if you are not installing a new version of Windows, because the machine already has a licensed copy on it, as many do, the software is free. There is no limit to how many companies you can do on your own; Microsoft only charges for licenses. Here, make one yourself in case you need to do it.
Mr. Lundgren's plan was simple. I was falsifying the Windows software in China and I was importing it to the United States. Mr. Lundgren intended that the software be sold to the reconditioning community as if it were a legitimate and authoritative copy of Windows.
There is the key. "As if it were a legitimate copy licensed by Windows."
These are not licensed copies of Windows! They are discs that anyone can make, and manufacturers and restorers can print as many as they want, to deliver to customers who already have a copy of Windows. These disks are for repairing or reinstalling a copy of the operating system. They did not come with licenses and Lundgren did not sell or provide licenses.
Do not let Microsoft fool you in the same way they helped cheat the judges. A recovery disk is something that you or I or a reconditioner can do right now for free. A license to operate Windows comes from Microsoft and costs a lot of money. They are not the same and Lundgren was going to sell the first, not the last.
I asked Microsoft to explain this last point and I'll update it if I hear it.