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Electronics-Recycling Innovator Faces Prison For Extending Computers' Lives
schwit1 shares a report from Los Angeles Times: Prosecutors said 33-year-old [Eric Lundgren, an electronic-waste recycling innovator] ripped off Microsoft by manufacturing 28,000 counterfeit discs with the company's Windows operating system on them. He was convicted of conspiracy and copyright infringement, which brought a 15-month prison sentence and a $50,000 fine. In a rare move though, a federal appeals court has granted an emergency stay of the sentence, giving Lundgren another chance to make his argument that the whole thing was a misunderstanding. Lundgren does not deny that he made the discs or that he hoped to sell them. But he says this was no profit-making scheme. By his account, he just wanted to make it easier to extend the usefulness of secondhand computers -- keeping more of them out of the trash.
The case centers on "restore discs," which can be used only on computers that already have the licensed Windows software and can be downloaded free from the computer's manufacturer, in this case Dell. The discs are routinely provided to buyers of new computers to enable them to reinstall their operating systems if the computers' hardware fails or must be wiped clean. But they often are lost by the time used computers find their way to a refurbisher. Lundgren said he thought electronics companies wanted the reuse of computers to be difficult so that people would buy new ones. He thought that producing and selling restore discs to computer refurbishers -- saving them the hassle of downloading the software and burning new discs -- would encourage more secondhand sales. In his view, the new owners were entitled to the software, and this just made it easier. The government, and Microsoft, did not see it that way. Federal prosecutors in Florida obtained a 21-count indictment against Lundgren and his business partner, and Microsoft filed a letter seeking $420,000 in restitution for lost sales. Lundgren claims that the assistant U.S. attorney on the case told him, "Microsoft wants your head on a platter and I'm going to give it to them."
The case centers on "restore discs," which can be used only on computers that already have the licensed Windows software and can be downloaded free from the computer's manufacturer, in this case Dell. The discs are routinely provided to buyers of new computers to enable them to reinstall their operating systems if the computers' hardware fails or must be wiped clean. But they often are lost by the time used computers find their way to a refurbisher. Lundgren said he thought electronics companies wanted the reuse of computers to be difficult so that people would buy new ones. He thought that producing and selling restore discs to computer refurbishers -- saving them the hassle of downloading the software and burning new discs -- would encourage more secondhand sales. In his view, the new owners were entitled to the software, and this just made it easier. The government, and Microsoft, did not see it that way. Federal prosecutors in Florida obtained a 21-count indictment against Lundgren and his business partner, and Microsoft filed a letter seeking $420,000 in restitution for lost sales. Lundgren claims that the assistant U.S. attorney on the case told him, "Microsoft wants your head on a platter and I'm going to give it to them."
The discs had labels nearly identical to the discs provided by Dell for its computers and had the Windows and Dell logos. "If I had just written 'Eric's Restore Disc' on there, it would have been fine," Lundgren said.
A copy of a Windows disc is clearly not illegal. It is the license which Microsoft sells and which end-users or manufacturers pay for. They ruined this mans life over a trademark logo.
Let's make like a bird... and get the flock outta here.
He didn't sell the discs. He provided the discs for free with computers that already had an OS license sticker on them. If the computer didn't have a license sticker then he didn't provide a disc.
Still an EULA case not an criminal case
Should your friend in that situation then go to jail for giving you a copy to use to restore the computer with a valid license with? 'Cause that's what this case is about.
Except, like so many others on this thread, you ignore the fact that he admitted he wanted to sell the discs. Sell - not give away.
Ken
...the hardware has to stay with the software.
Correct, OEM hardware cannot be sold without software rights. So the hardware was licensed.
This is mostly a trademark violation case. The OS restore disks this man burned had Microsoft and Dell logos. There's may be a small amount of copyright violation here - he burned OS restore images (available for free download from Dell's website), in anticipation of selling to eventual customers: PC refurbishment companies. If he already had an understanding with his customers to sell these disks to them, you could argue he acting an agent for them, in anticipation of custom. If so, this case boils down his violation of Microsoft and Dell trademarks.
The main problem is below:
The discs had labels nearly identical to the discs provided by Dell for its computers and had the Windows and Dell logos. "If I had just written 'Eric's Restore Disc' on there, it would have been fine," Lundgren said.
The appeal court agreed with you, which is why he's currently not in prison.