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$500M Piracy Ring Busted In China

Blahbooboo3 writes "Reported by several news organizations, pirated software worth more than $500 million has been seized by authorities in China as part of a joint operation run by Chinese police and the FBI. Microsoft estimates that the software piracy of an international counterfeiting syndicate, over the past six years, cost the company at least $2 billion in lost software revenue. Microsoft said that key information in the investigation came from its Windows Genuine Advantage program, an anti-piracy system that can check whether an OS is legit. It's generally accepted that Microsoft has done well out of software piracy: it helps products become widely used, and as the market matures, people start to pay for their software. And this has been a major factor in Windows beating Linux in China, as Bill Gates has admitted."

4 of 154 comments (clear)

  1. As the market matures by hateful+monkey · · Score: 5, Interesting

    Apparently Microsoft has decided that the market is now mature enough to start tightening up on the availability of pirate versions. They have the 90% market penetration, now they want to get the money out of that market. The first hit was free now it is time to pay. The Chinese government has been under a lot of pressure to show more concern about "intellectual property" so let the dog and pony begin.

  2. Don't worry about Linux by tigeba · · Score: 5, Funny

    There is always Linux Genuine Advantage http://www.linuxgenuineadvantage.org/ to keep it safe from piracy.

  3. The price of piracy by tigress · · Score: 5, Insightful

    I've always been amused by the figures that are put on software piracy.

    Unlike things like producing a line of denim clothing and putting the Levis brand on it, creating pirated software costs virtually nothing. It takes just as much effort to copy a DVD containing your latest vacation photos as copying a DVD containing a $10k software package.

    Just because they discovered a few thousand copies of expensive software doesn't mean that it either cost that much to produce, or has that much sale value (pirated software sells for far less). Neither does it mean that the loss in sales is nearly as much, as many of those who buy/download pirated software would never have bought the software in the first place.

    1. Re:The price of piracy by nasor · · Score: 5, Insightful

      If the "value" of pirated software was anything like what the industry claimed, everyone with a CD burner would simply make a copy of AutoCAD (retails for around $17k) every month and retire early.