Microsoft Targeted Manufacturers of Pirated Copies

It was reported that two domestic companies were punished for making fake Microsoft software.
In October 2004, the Changsha Intermediate People's Court in Hunan province ruled that a department store in the city must stop selling products which infringe Lacoste's crocodile mark and pay damages to Lacoste.

Receiving complains from Microsoft, the National Copyright Administration initiated investigation in June 2004 and two accused infringes, Beijing Central Press Union Digital Technology and Tianjin Minzu Culture CD, were found liable for making pirated copies of the operating system Windows XP. The Beijing company produced 55,000 pirated copies from November 2001 to June 2003; and the Tianjin company produced 4,000 pirated copies in 2002. The two companies are not underground operations. Instead, they are big companies authorized to produce CD-ROMs.

The Beijing company was fined RMB 80,000($9,600) plus confiscation of illegal turnover of RMB 10,405($1,250); and the Tianjin company was fined RMB 10,000($1,200) plus confiscation of illegal turnover of RMB 600($70). Some individuals responsible for the infringement were transferred to judicial authorities for criminal investigations.

It was reported that this was the first time for Microsoft to take actions successfully against manufacturers of pirated copies. However, the authorities failed to track the pirated copies. The National Copyright Administration will make further investigations.