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Microsoft Attempts To Spin Its Role in Counterfeiting Case (techcrunch.com)

Eric Lundgren, who has spent his life working on e-waste recycling programs, was arrested and charged with "counterfeiting" Microsoft restore discs earlier this week, part of a controversial, years-long legal fight that ended when an appeals court declined to overturn a lower court's decision. Lundgren argued that what he was offering is only recovery CDs loaded with data anyone can download for free. In an interview with The Verge, he said, "Look, these are restore CDs, there's no licenses, you can download them for free online, they're given to you for free with your computer. The only way that you can use them is [if] you have a license, and Microsoft has to validate it.?" Lundgren was going to sell them to repair shops for a quarter each so they could hand them out to people who needed them. Shortly after the Lundgren's was arrested, Microsoft published a blog post which stridently disagrees with Lundgren's characterization of the case. From a report: "We are sharing this information now and responding publicly because we believe both Microsoft's role in the case and the facts themselves are being misrepresented," the company wrote. But it carefully avoids the deliberate misconception about software that it promulgated in court. That misconception, which vastly overstated Lundgren's crime and led to the sentence he received, is simply to conflate software with a license to operate that software. [...] Hardly anyone even makes these discs any more, certainly not Microsoft, and they're pretty much worthless without a licensed copy of the OS in the first place. But Microsoft convinced the judges that a piece of software with no license or product key -- meaning it won't work properly, if at all -- is worth the same as one with a license.

[...] Anyway, the company isn't happy with the look it has of sending a guy to prison for stealing something with no value to anyone but someone with a bum computer and no backup. It summarizes what it thinks are the most important points as follows, with my commentary following the bullets. Microsoft did not bring this case: U.S. Customs 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 lost sales. That's not possible, of course, since Microsoft gives the contents of these discs away for free. It sells licenses to operate Windows, something you'd have to have already if you wanted to use the discs in the first place.

Lundgren went to great lengths to mislead people: His own emails submitted as evidence in the case show the lengths to which Mr. Lundgren went in an attempt to make his counterfeit software look like genuine software. They also show him directing his co-defendant to find less discerning customers who would be more easily deceived if people objected to the counterfeits. Printing an accurate copy of a label for a disc isn't exactly "great lengths." Early on the company in China printed "Made in USA" on the disc and "Made in Canada" on the sleeve, and had a yellow background when it should have been green -- that's the kind of thing he was fixing.

170 comments

  1. Microsoft is slime... by Type44Q · · Score: 5, Insightful

    Microsoft is slime and no amount of PR spin is going to change that.

    1. Re:Microsoft is slime... by Anonymous Coward · · Score: 0

      Microsoft is slime.

      Their new mascot is going to be a tiny slug.

    2. Re: Microsoft is slime... by Anonymous Coward · · Score: 0, Informative

      Microsoft is and always has been evil. Since they stole CP/M code to sell DOS. Since they screwed Lotus to create the Office monopoly. They just keep getting worse and worse. Anyone willingly using their shit gets what they deserve.

    3. Re:Microsoft is slime... by fustakrakich · · Score: 1

      Hardly matters as they laugh their way to the bank. Being slimy has proven to be quite rewarding. When doing your Pavlovian/Skinner experiments, do you punish the dog for hitting the correct button?

      --
      “He’s not deformed, he’s just drunk!”
    4. Re:Microsoft is slime... by BlueStrat · · Score: 1

      Microsoft is slime and no amount of PR spin is going to change that.

      I'm sorry, but I must strongly disagree with that characterization of Microsoft!

      You slander all decent slime with your insult, Sir!

      Strat

      --
      Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.
    5. Re: Microsoft is slime... by Anonymous Coward · · Score: 0

      True. And since they blatentky lied in court Lundgren now has an excellent lawsuit against them.

    6. Re:Microsoft is slime... by Gadget_Guy · · Score: 3, Insightful

      Of course Microsoft is slime, but that doesn't change the fact that they have the right to decide how they want their software to be distributed. In their Terms of service for downloading a Windows ISO it says:

      Unless otherwise specified, the Services are for your personal and non-commercial use. You may not modify, copy, distribute, transmit, display, perform, reproduce, publish, license, create derivative works from, transfer, or sell any information, software, products or services obtained from the Services.

      If we don't allow them to limit how their OS is distributed then surely we can't insist that the source code needs to be made available when distributing GPL software.

      And it seems dangerous to turn a blind eye to making indistinguishable knock-offs of operating system DVDs that could easily be modified to pre-install malware. Microsoft and Dell would not want their logos put on something that wasn't made by them.

    7. Re:Microsoft is slime... by Tough+Love · · Score: 2

      Recent image of Bill Gates. Undeniable... looks older than his years. Something eating him out from inside?

      --
      When all you have is a hammer, every problem starts to look like a thumb.
    8. Re:Microsoft is slime... by Anonymous Coward · · Score: 0

      This is traditionally called Consumer Fraud. Their TOS doesn't matter in the criminal case.

    9. Re:Microsoft is slime... by Anonymous Coward · · Score: 0

      +5 Absolutely insightful.

      And no amount of shilling on this site will change both older and recent evidence of the same old behavior from buggy McMicrosoft.

    10. Re:Microsoft is slime... by fustakrakich · · Score: 1

      www.sciencealert.com/images/2018-04/processed/BillGatesDisease_web_1024.jpg

      I have to admit the color tones were nicely done, but please...

      --
      “He’s not deformed, he’s just drunk!”
    11. Re:Microsoft is slime... by Anonymous Coward · · Score: 0

      Microsoft is slime and no amount of PR spin is going to change that.

      It's a violation of copyright law, of course the shoe would be on the other foot if this was somebody violating copyright law to distribute copies of modified GPL'd software without source and arguing "oh but it was available free on the internet".

    12. Re:Microsoft is slime... by Anonymous Coward · · Score: 0

      Of course Microsoft is slime, but that doesn't change the fact that they have the right to decide how they want their software to be distributed.

      No no. This is slashdot, Microsoft doesn't have that right. Now if this were somebody distributing GPL software against the set terms then you might have a point but this is Microsoft so it's a different set of rules. Microsoft is always wrong.

    13. Re: Microsoft is slime... by Anonymous Coward · · Score: 0

      You sure Microsoft is Slime? Iâ(TM)m thinking itâ(TM)s closer to Jizz.

    14. Re:Microsoft is slime... by Anonymous Coward · · Score: 0

      The problem seems to be that MS doesn't want people to get a hold of the disks because they are versions of Windows themselves unless they themselves agree to the EULA. This would be a bad precedent for MS to have copies of Windows floating around that have no legal EULA attached.

    15. Re:Microsoft is slime... by Ichijo · · Score: 1

      According to that TOS, it was a copyright violation for the ISP to transmit the data from Microsoft to Lundgren.

      This presents an interesting way for ISPs to get around net neutrality. "We can't allow Netflix on our network because we don't have a license to retransmit their data. Here, try our VOD service."

      Remember the Aereo case?

      --
      Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    16. Re:Microsoft is slime... by Anonymous Coward · · Score: 0

      Of course Microsoft is slime, but that doesn't change the fact that they have the right to decide how they want their software to be distributed. In their Terms of service for downloading a Windows ISO it says:

      Unless otherwise specified, the Services are for your personal and non-commercial use. You may not modify, copy, distribute, transmit, display, perform, reproduce, publish, license, create derivative works from, transfer, or sell any information, software, products or services obtained from the Services.

      If we don't allow them to limit how their OS is distributed then surely we can't insist that the source code needs to be made available when distributing GPL software.

      And it seems dangerous to turn a blind eye to making indistinguishable knock-offs of operating system DVDs that could easily be modified to pre-install malware. Microsoft and Dell would not want their logos put on something that wasn't made by them.

      Yes and along with jail time, the miscreant should be flogged and thrashed for his transgressions.
      I am sure the positive PR Microsoft will enjoy means they won't strenuously put a spin on their side of things. Err but they did anyway because - because because, the Wizard of Oz. Oops maybe I have copyright infringed The Wizard of Oz - but would it be the book or the movie? Better go thrash myself.

  2. Abuse becomes their business. by Anonymous Coward · · Score: 5, Insightful

    Sometimes it seems that companies are more involved with abuse than doing healthy business.

    Windows 10 is possibly the worst spyware ever made.

    7 ways Windows 10 pushes ads at you...

    1. Re:Abuse becomes their business. by LVSlushdat · · Score: 5, Insightful

      This little tidbit from their Windows 10 EULA *should* make ANY intelligent computer user run SCREAMING away from ANYTHING Microsoft..

      We will access, disclose and preserve personal data, including your content (such as the content of your emails, other private communications or files in private folders), when we have a good faith belief that doing so is necessary to.

      If you're recycling computers and putting an MS OS back on it, you're nuts and deserve this kind of abuse. Most of the computer recyclers I've run into put a lightweight Linux distro on their recycled machines..

      --
      THANK YOU, Edward Snowden!! Americans owe you a debt of gratitude (whether they know it or not..)
    2. Re:Abuse becomes their business. by Anonymous Coward · · Score: 0

      Best unplug yourself then from the internet and society in general

  3. The court of public opinion wins.... by Sebby · · Score: 1

    ... always.

    --

    AC comments get piped to /dev/null
    1. Re: The court of public opinion wins.... by Anonymous Coward · · Score: 0

      The court of public opinion doesn't know about and certainly doesn't give a shit about this at all.

    2. Re:The court of public opinion wins.... by fustakrakich · · Score: 1

      'Public opinion' is more accurately reflected in the accountant's spreadsheets than in the tabloids.

      --
      “He’s not deformed, he’s just drunk!”
    3. Re: The court of public opinion wins.... by ozzee · · Score: 1

      My opinion is public and this article is the first I posted on in a long while i think I care that MS makes a mockery of Justice system. Just to point out I care, being public and all.

  4. Are they? by Anonymous Coward · · Score: 0

    Just remember your opinion is also based upon spin.

    1. Re:Are they? by phantomfive · · Score: 4, Insightful

      Maybe his opinion is based on facts. Have you thought about that? Some people go into effort to read and understand a situation. You don't have to choose a favorite spin doctor, you can dig deep and seek understanding.

      --
      "First they came for the slanderers and i said nothing."
    2. Re:Are they? by Anonymous Coward · · Score: 0

      Yeah, I read the facts. Microsoft is Slime!

    3. Re:Are they? by AmiMoJo · · Score: 0, Flamebait

      Here's what actually happened.

      The guy convicted wasn't just burning a few discs. He had 80,000 manufactured in China. Not CDRs, proper printed discs with labels made to look like the real thing. And then he tried to pass them off as real to customers. He expected a tidy profit from this investment.

      Had he just been a good guy making discs for people who lost theirs he would have been fine. And Microsoft even makes the discs available for free download on their site, at least for Windows 7 and later (7 being the oldest version still supported).

      That's not what he did though. He was in it for the money, and was happy to deceive people and make a profit from that deception. Regardless of the legality or morality of duplicating freely available discs, it's the fraud aspect that screwed him.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    4. Re:Are they? by AxeTheMax · · Score: 1, Troll

      You are doing pretty much what the article accuses Microsoft of doing. That is, confusing a recovery disk that contains no license with a copy of the software. From the article -

      These discs are for repairing or re-installing a copy of the OS. They did not come with licenses and Lundgren was not selling or providing licenses.

      If you think the article is wrong, then explain how and why that is.

    5. Re:Are they? by AmiMoJo · · Score: 1

      It's got nothing to do with licences. The discs were pretending to be something they were not (genuine Dell products), which is fraud.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    6. Re:Are they? by cchheezzaall · · Score: 2

      RE comment "....... He expected a tidy profit from this investment. ......." From the article Lundgren was going to sell them to repair shops for a quarter each so they could hand them out to people who needed them. Hardly a profit ... more likely ... just cover costs ....

    7. Re:Are they? by AmiMoJo · · Score: 3, Interesting

      The evidence presented in court suggests that claim was a lie. Microsoft's blog post has PDF versions of the emails submitted as evidence here: https://blogs.microsoft.com/on...

      Note how we talks about it providing a steady source of income, and how the sale of 8,000 discs netted him $28,000. That suggests he was wholesaling them for $3.50 to his friend.

      The most damning email is the one where he tells his friend about how hard it is to spot that his discs are fake, so good is the forgery.

      He clearly was not doing the community a favour here, he was profiting off discs he passed off as genuine.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    8. Re: Are they? by ozzee · · Score: 3, Interesting

      Sure, he pleaded guilty to that. That's not the point. The point was that the severity of the sentence was because of Microsoft testimony saying these disks were worth $28 each. That's ehat gave the prosecutor leverage when in fact they are free.

    9. Re: Are they? by Anonymous Coward · · Score: 0

      $28 for a recovery disk you could download for free. My question is this: who is the corrupt prosecutor who goes along with that and who is uninformed, unintelligent judge who agreed with that??? Seriously stupid people in positions of power.

    10. Re:Are they? by Anonymous Coward · · Score: 0

      The blog post underlines why he could do this. Microsoft refuses to sell these disks without a license, even though the vast majority of refurbished computers will have had a legally licensed version of Windows already installed. The bundle which Microsoft offers is: the disk + a new license for $25. The disk itself is not worth $25 without a license, but that was what Microsoft claimed. OTOH, I'm sure that their lawyers were very very careful so my guess is what they actually claimed was that every sale of his disks was a lost bundle sale from Microsoft (changing this into the "look at how much money we lost from piracy" bullshit which the **AAs are famous for).

    11. Re:Are they? by Anonymous Coward · · Score: 0

      somebody is telling a huge lie about how much these disks cost. If he was selling them for 25 cents, then if you do the math, 8000 disks would have netted him a total of $2000. That's without removing the cost of production, which could conceivably half any profit if not wipe it out entirely.

      So $28k *profit* marks either him or you as a big fat liar. Who do you think is lying here?

    12. Re:Are they? by Anonymous Coward · · Score: 0

      changing this into the "look at how much money we lost from piracy" bullshit which the **AAs are famous for

      It's the same bullshit people like RMS are famous for: non-free software is taking away your freedom to modify it, which is bullshit because you can't take away something you were never granted in the first place.

      It's a bullshit thing but it's a game both sides play.

    13. Re:Are they? by Ichijo · · Score: 1

      He clearly was not doing the community a favour here, he was profiting off discs he passed off as genuine.

      Why can't it be both?

      --
      Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    14. Re: Are they? by exomondo · · Score: 1

      So why was he selling them for a profit in the first place then if people could just download them for free? And more to the point why was he going to so much effort to try to make them look like genuine products produced by Microsoft/Dell if it was just a physical copy of something downloadable free on the internet? The fraud charge was because of the fraudulent behaviour in trying to make the product he was selling look like a genuine product from somebody else.

    15. Re:Are they? by Anonymous Coward · · Score: 0

      No one should see the guy as a saint, and at the same time no one should see MS as a victim either. They both deserve each other.

  5. Couldn't this have been a revenue opportunity for by mykepredko · · Score: 2

    Microsoft?

    If it's their disks and they're used for recovery, couldn't they ask the user to upgrade (for a fee, of course) to:
    - Windows 10
    - Office 360 (or other flavours)
    - Visual Studio
    - Online support

    Thereby locking in the Microsoft experience and making it easier for customers to use the computers rather than considering putting Mint on them because Microsoft products are too much hassle.

    At worst, this would be Microsoft being seeing as exploiting a market rather than beating up somebody who is trying to make their OS available to everyone.

  6. Oh, no. Not this shit again by Anonymous Coward · · Score: 1

    He didn't go to jail for burning the OS onto discs and distributing them.

    He went to jail because he was committing trademark infringement by printing Microsoft and Dell logos on the discs and using trademarked names on his pirated discs.

    If the discs would have been a plain label with only the logo of his company and something like "Operating System Restore Disk version 7" or "Operating System restore disk version XP" printed on them, he'd still be a free man.

    Or if he wouldn't have been charging for the discs, he would still be a free man. But we are a nation of laws, and the law says that if you're making money off of someone else's trademark you're guilty of a crime. I think this case is bullshit, and you should think it's bullshit too. But if a company doesn't defend their trademark they lose the protection under the law, so they had no choice but to let this case proceed whether they liked it or not.

    Not saying MS or Dell are "good guys" or anything, but this is not a case of "going to jail for giving away Windows discs without a license", and anyone who frames it that way is intentionally being obtuse.

    1. Re:Oh, no. Not this shit again by Presence+Eternal · · Score: 2

      It is true he misused trademarks, and it is true that it would have been fair to punish him for that. It is not true that Microsoft had a bug up their ass about those trademarks. Their lawyers and witnesses were specifically going on about the "value" of the software. The software had no value without a licence. It is not true that the discs were pirated in any sane sense of the term.

    2. Re:Oh, no. Not this shit again by Junta · · Score: 3

      I think that's a misinterpretation as well.

      The software has copyright on it. Whether it is free or paid for, making a copy is a matter of law. Sure the law may be flawed and sure this may defy common sense, but no matter the label used, he made copies of MS software and distributed them to third parties without any agreement allowing him to do so. The trademark violation and efforts to deceive about country of origin and 'genuine' microsoft software are problems, but not required for him to be in trouble.

      Even if the software is no-cost, there are terms and conditions relevant to entitlement to copy (you can make copies for personal backup reasons because the law permits it, but not for redistribution). Otherwise, GPL and BSD licenses would not have any means to enforce it.

      For MS, this is going to be a tricky thing to spin in a good light. In their defense, if someone did this and they or the company that actually made the media put in a rootkit, not just a straight download of MS software, then MS could have a different PR problem, not doing enough to prevent malicious software and people assuming MS did it. Of course getting this story big and explaining this angle would work better than talking about "lost sales" (which clearly was not the case here) and perhaps asking for leniency for this case would have made for better PR moves.

      Of course he was *charging* for it to get profit, so sympathy for the person isn't *that* well placed, even if under the guise of recycling.

      --
      XML is like violence. If it doesn't solve the problem, use more.
    3. Re:Oh, no. Not this shit again by hey! · · Score: 2

      He went to jail because he was committing trademark infringement by printing Microsoft and Dell logos on the discs and using trademarked names on his pirated discs.

      But the software *was* genuine Dell and Microsoft. It's like putting a Ford badge on a Ford car.

      In a way it's natural to have a confusion between the intellectual property itself and the carrier. For years that was the way copyright was enforced. And in fact the guy was in the business, partly, of selling these discs. But he wasn't selling the IP itself, he was selling access to the IP. It's only confusing because copyright depended for so many years upon controlling physical copies. It's like a bug in the IP system caused by legacy feature support.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    4. Re:Oh, no. Not this shit again by Anonymous Coward · · Score: 1

      He didn't go to jail for burning the OS onto discs and distributing them.

      He went to jail because he was committing trademark infringement by printing Microsoft and Dell logos on the discs and using trademarked names on his pirated discs.

      The discs are incapable of being pirated. There was and is no charge for the software on them.

      If the discs would have been a plain label with only the logo of his company and something like "Operating System Restore Disk version 7" or "Operating System restore disk version XP" printed on them, he'd still be a free man.

      Or if he wouldn't have been charging for the discs, he would still be a free man. But we are a nation of laws, and the law says that if you're making money off of someone else's trademark you're guilty of a crime.

      But was he really making money, at 0.25 USD a disc?

      I think this case is bullshit, and you should think it's bullshit too. But if a company doesn't defend their trademark they lose the protection under the law, so they had no choice but to let this case proceed whether they liked it or not.

      Not saying MS or Dell are "good guys" or anything, but this is not a case of "going to jail for giving away Windows discs without a license", and anyone who frames it that way is intentionally being obtuse.

      From the article summary, Microsoft didn't bring the case. They just piled on to help/goad the prosecutors.

    5. Re:Oh, no. Not this shit again by DRJlaw · · Score: 1

      But the software *was* genuine Dell and Microsoft. It's like putting a Ford badge on a Ford car.

      Hate to say it, but it's not remotely like putting a Ford badge on a Ford car.

      Ford puts Ford badges on Ford cars. If you were to put a Ford bade on a copy of a Ford card, no matter how good, it would still be counterfeiting and trademark infringment precisely because Ford did not make that car.

      But he wasn't selling the IP itself, he was selling access to the IP.

      He was manufacturing physical CDs with the physical data on them and at the end of the day he sold them separately from the refurbished computer. It would have been a whole different story if he had downloaded the recovery software onto the HD of a refurbished computer, or even packaged a generially labeled CD and bundled it only with a refurbished computer. He did not.

      It's like a bug in the IP system caused by legacy feature support.

      It is not. It is a community that either does not know or is willfully blind to the facts of this case throwing a tantrum. I cannot sell Linux distribution CDs and refuse to offer the source code while arguing that "users can download the Linux distribution and burn it onto CDs themselves, so I am just providing a convenience service on their behalf."

      Unfortunately he made the wrong choices at many levels, and that left a small issue of whether counterfeit recovery CDs were counterfeiting a product that Microsoft apparently sells to OEMs for some value. Well, apparently, they do.

    6. Re:Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      The software might have been genuine, but the disk was not.

    7. Re:Oh, no. Not this shit again by Anonymous Coward · · Score: 2, Informative

      Wow AC, you're a complete bullshit artist. A good one, but a bullshit artist nonetheless. This case has nothing to do with trademark or copyright infringement. I especially like how you sympathize with the reader ("I think this is bullshit and you should too. BUT...") before leading them to the false conclusion. Craftsman's work sir.

      Anyway, the core of the case is this: "But while software licenses transfer when computers change hands among individuals, commercial sellers like refurbishers must buy new licenses for $25, according to Microsoft."

      Microsoft was "losing" $25.00 a pop. That's the core of this case. Absolutely nothing about trademark or copyright infringement. The prosecutors crafted their case with direct input from Microsoft.

      From the WaPo article:

      "Microsoft issued a statement Wednesday explaining why they participated in the prosecution of Lundgren, which was to discourage both counterfeiting and the spread of malware within counterfeit software... The idea of spreading dangerous malware was not discussed in Lundgren’s case. But Microsoft said that when a computer system is prepared for refurbishment, its hard drive is wiped clean of data and its original software. The license for the operating system does not transfer, as Lundgren claimed, and refurbishers are required to obtain new licenses which Microsoft offers at a discounted price of approximately $25, a Microsoft spokesman said.

      Lundgren said he wasn’t sure when he would be surrendering. He said prosecutors in Miami told him he could have a couple of weeks to put his financial affairs in order, including plans for his company of more than 100 employees."

      Ruthlessness is in Microsoft's DNA.

    8. Re: Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      Wrong.
      If you call Dell and ask for an official recovery disk, they will charge you for it. Not for the software itself, but for the disk and shipping and etc.
      This guy had 28k disks he intentionally made to look like Official disks that had been sourced from Dell. Because a lot of people would look at a random disk from some random guy with suspicion. Without the official logos and trademarks, the disks were worthless and he would have had a hard time giving them away for free. With them, they could be sold.

      Put simply, the value is in the claim that the disks were officially sanctioned and contained 'clean' images from Dell and Microsoft.

    9. Re:Oh, no. Not this shit again by hey! · · Score: 1

      Well, sure. But why should anyone care?

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    10. Re:Oh, no. Not this shit again by Darinbob · · Score: 4, Insightful

      The trademarks however are not worth $25 per disk with the trademark. Also trademark violations are a civil offense, they don't result in criminal trial that can lead to jail time but instead are resolved through a normal lawsuit process.

    11. Re:Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      In more basic terms, he guilty of not going through channels. Then again, not protecting your trademark could conceivably leave you open to liability. I hope there is an appeal process for the entirely unjust sentence. And I wish there was punishment for those that imposed it. Anybody who favors this kind of treatment is an animal, a sub-human savage, who should himself be imprisoned.

    12. Re:Oh, no. Not this shit again by Anonymous Coward · · Score: 1

      Okay, apology due to original AC. Here's a link to the opinion issued by the 11th Circuit Court: http://media.ca11.uscourts.gov/opinions/unpub/files/201712466.pdf

      From the PDF: "Lundgren entered into a plea agreement in which he pled guilty to conspiracy to traffic in counterfeit goods and criminal copyright infringement. The government dropped the remaining charges."

      So, while I went and spouted off before reading the opinion, the point remains - while they got him on "counterfeiting", the economic cost to Microsoft was the $25.00 a pop and the suppression of selling new OS's.

      However, I think the Washington Post should have covered that part in its reporting... It is of course my responsibility for spouting off half-cocked, but one would think such an august publication as the Washington Post should have covered that angle in their article. The official, stated reason this guy is being put in jail is for "traffic in counterfeit goods and criminal copyright infringement".

      So - apologies to original AC for calling him a bullshit artist - he's not and I was wrong in that. I should have read the court opinion and not relied solely on the Washington Post article to come to a conclusion. However, this is still a ruthless sentence and in keeping with the finest traditions of Microsoft.

    13. Re:Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      The simple fact that the Appeals Court used is that if you really thought something was value, then you wouldn't sell it or invest thousands of dollars in buying it. Even the defendant conceded that point. The real debate was over the amount, which is a required element in a case like this. If anything, he should be happy they used the value they did for the COUNTERFEIT GOODS and not the statutory damages, which is what people are usually stuck with because they are so big and make the prosecutor look better even with a plea deal.

    14. Re:Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      Because the disk was being sold, as you yourself said. It is not legal or allowed to sell something with somebody else's branding (without an explicit agreement).
        It was deliberate and intended to deceive -- this is a fact of the case not disputed by the defense. They have emails there showing they were discussing how their stuff looks counterfeit, and how they planned to bypass customs. This wasn't an accident, dude knew this was illegal.

      Personally I think the prison sentence is unnecessary, but the guy's guilty.

    15. Re:Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      But we are a nation of laws, and the law says that if you're making money off of someone else's trademark you're guilty of a crime.

      How is what he did any different than someone selling a used car and listing it as a "1999 Toyota Camry"? Or better yet, parting the car out and listing each individual piece as an "official 1999 Toyota Camry part"?

    16. Re:Oh, no. Not this shit again by hey! · · Score: 1

      But you can use someone else's trademarks when they refer to the actual goods, and in this case the goods the customer is interested in is the software itself.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    17. Re: Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      You must be a counterfeit user here. No real slashdot user would ever admit being wrong, let alone apologize for it!

    18. Re: Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      I like to understand the reality of the situation. I seek facts and evidence. I'm often right. Occasionally wrong. I think there's social utility in having people understand the reality of the situation. As such, when I'm wrong, I'll (typically) admit it. The goal is having an accurate view of reality.

      I realized that the Washington Post is Jeff Bezos' private newspaper. That could be one reason why the WaPo didn't cover the situation accurately.

      Getting back to the issue at hand, this fellow is going away for the crime of putting a corporate logo on a freely available disc. Not once but thousands of times. But the "crime" is like speeding. I've sped. Not once but thousands of times. Minor speeding typically. I find what this fellow did to be much less bad than speeding. Was he putting anyone at risk? No. He took away the slightest sliver of profit from a gargantuan company, and in reality, for that, he is going to pay dearly.

    19. Re:Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      Well, sure. But why should anyone care?

      If nobody cared then why did he bother going to such lengths to make them look like the genuine article? Why not just print "Windows Recovery Disc" on a blank disc. It would have been much easier but of course he wouldn't have made the profits that he made because they wouldn't have looked genuine.

    20. Re:Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      So, MS did not make the windows that was on the discs?

    21. Re:Oh, no. Not this shit again by DRJlaw · · Score: 1

      So, MS did not make the windows that was on the discs?

      You can't know - Microsoft didn't make the discs.

    22. Re:Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      The rootkitted-media problem and deception about countries of origin angle, as well as pointing out the fact, that he ordered this all from China, would have been better PR moves, as would asking the court for lenience in an amicus curiae brief.

      Getting after him like that is likely to make changes in the computer refurbisher market: Some will move to use that stupid refurbisher programme, others will only distribute instructions about how to obtain the original install media (inter alia, "you download and burn it from this official website, and I will install it for you"), and yet others will continue moving to Linux.

    23. Re:Oh, no. Not this shit again by DamnOregonian · · Score: 1

      The software had no value without a licence.

      While I'm totally sympathetic to the defendant...
      Who are you to say that? They hold the copyright of that software. Maybe it can't be used without a license, but you don't get to say whether the value is in the license, or the copyrighted material he breached copyright on.
      What if that was your software?

    24. Re: Oh, no. Not this shit again by Anonymous Coward · · Score: 0

      Trademark infringement is a small fine civil court, this is counterfeit goods penal code and depending on the damages 45 years in jail.
      At 20$/Cd he got 1.5 years, at 20c/cd he would pay a few thousand dollars and be done.
      Now he's facing jail and has spent 6 years of his life and 800.000$ in defence fees. For something that makes no financial sense for a millionaire with 40 employees to do.

  7. Intern or offshore? Why not both! by Reaperducer · · Score: 1

    Wow. That Slashdot summary was almost English. But it least it showed a fundamental lack of understanding of how the legal system works. /s /.'s offshored "editors" strike again.

    --
    -- I'm old enough to have lived through six different meanings of the word "hacker."
  8. We're already calling it a counterfeiting case by rsilvergun · · Score: 2

    instead of a copyright case, so point to Microsoft.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:We're already calling it a counterfeiting case by PPH · · Score: 2

      Looks like Microsoft was pushing the definition of counterfeit. And they got what they wanted, a precedent set.

      Now, IANAL, but I suspect that there are advantages to winning a case of counterfeit vs copyright. There may be an entirely different federal law enforcement squad that handles each type of case. And the counterfeit cops have more automatic weapons and armored vehicles at their disposal.

      --
      Have gnu, will travel.
    2. Re: We're already calling it a counterfeiting case by Anonymous Coward · · Score: 0

      The disks WERE counterfeit. They were not made or sanctioned by Dell or MS, regardless of whether the data on them was or not.

      He used the official logos because he knew that most people wouldn't trust a restore disk made by Joe Random, and thus wouldn't be able to sell them.

    3. Re: We're already calling it a counterfeiting case by Anonymous Coward · · Score: 0

      Counterfeit implies something of value.
      Chinese funeral money (Fake US Currency) is accepted for what it is.
      This should have been a civil penalty - as the law is an ass. Even MS sees it as sort of regrettable. If they were no keys provided, where is the damage?
      It now turns out the damage claim has been retracted - to make their point about offensive look and feel.

      Fake restore disks are worse than useless, with 5 years of patchs etc to be applied and a gazillion reboots I turn to All in one images , because companies like Dell and HP do not reasonably update their restore software, including harmful spyware and diagnostic routines.

      MS has not been charged with wasting peoples time on a massive scale.

      I regret that computer magazine publishers do not have monthly updates like they used to with windows98.

  9. Context by Anonymous Coward · · Score: 0

    If he were handing out a few CD-Rs of freely downloadable software to people that need them, I'd say that's fair use.

    Having them made in bulk in China with intent to pass them off as genuine and Made in USA is something else entirely.

  10. They want it both ways by Anonymous Coward · · Score: 1

    They want to be thought of as so ruthless that if one even commits the thoughtcrime of copying software, they will be prosecuted by the full power of Microsoft. This guy is a feather away from that ($0.25 cents a disc for free software? Is he even covering his DVD cost?) and is serving jail time. But they also want to be thought of as good guys making the world a better place. Kind of like the Goldman Sachs CEO saying he was doing "God's work" prior to the malfeasance uncovered when the 2008 Financial Crisis hit.

    They are very happy to send this unmistakable message, despite feeble public protestations.

  11. Two scenarios here: by thegarbz · · Score: 1

    Scenario 1) : There is more to this than appears. This could be corroborated by the harsh sentence he received as well as not a single disagreement by any court. Two courts upholding a verdict that making a copy of a free disk which can't be used without a license doesn't sound like we know everything about this case.

    Scenario 2) : The legal system of the courts is fundamentally broken for letting it get this far. If it is as first appeared then this case should have been kicked to the kerb without ever having gone to trial. Corporations do incredibly stupid shit constantly and usually the only people it affects are the lawyers who get paid by the hour.

    In either case I find it hard to get really angry at Microsoft. As slimy as it would be that they go after this guy (if it is as first appeared), the justice system .... errr ... legal system should have sorted it out very early on.

    1. Re: Two scenarios here: by Anonymous Coward · · Score: 0

      The facts are available online!

      He literally went to anthinkable term in prison for selling restore disks.

      If that ain't lawyer slimy I don't know what is.

    2. Re:Two scenarios here: by b0s0z0ku · · Score: 1

      Scenario 2 is correct -- the US "justice" system is fundamentally broken. It's designed to punish people who don't kowtow to prostitutors' and judges' whims, refuse a plea bargain, and exercise their right to a trial.

      Any country that jails almost 1% of its population at a given time is fundamentally broken and deserves to collapse.

      What's the appropriate sentence here? Maybe some community service. Say teaching kids how to fix things. He didn't provide anything that M$ didn't provide for free, for download on their Web site. If anything, he saved MS some money by reducing the load on their download servers. His only "crime" was re-printing MS and Dell logos.

    3. Re:Two scenarios here: by thegarbz · · Score: 1

      Any country that jails almost 1% of its population

      Well hang-on, that's not the justice system. The judiciary here only upholds the laws as they are passed. That is the problem of the executive branch of the government that made these laws in the first place.

      What's the appropriate sentence here?

      You've jumped into sentence implying that the legal system was working as intended. If the legal system is broken as per scenario 2, there would not be talk of a sentence.

    4. Re:Two scenarios here: by b0s0z0ku · · Score: 1

      Legislative generally makes the laws.

      The problem is on multiple levels, actually. Unjust laws would essentially be void without people willing to work to convict people of violating them (judges, juries, DAs). They'd also be void if no one was willing to enforce them (cops, jailers). Thus, virtually everyone working for the court or enforcement system is part of the problem, whether they use the "just following orders" excuse or not.

    5. Re: Two scenarios here: by Megol · · Score: 1

      Manufacturing and selling disks with software he didn't have the right to have in the first place. Is it so bloody hard to understand?

      Selling as in making them to earn money.

      Selling them as original - LEGAL - discs with extra effort spent to make them as close as possible to the original - LEGAL - discs so that their customer wouldn't complain.

      Why is the last part so important? Because they wanted to sell their discs as original - LEGAL - discs to people that wanted original - LEGAL - discs.

      This is a standard scumbag as all other for-profit software pirates. Nothing makes this special. Just someone that takes something they don't own nor have right to redistribute to sell to others.

    6. Re: Two scenarios here: by Anonymous Coward · · Score: 1

      The crime was attempting to pass off his own disks as Genuine, which they were not, selling them, and importing them.

      The sentence was harsh because he demonstrated no remorse for violating customs laws, and refused to acknowledge that there IS a difference between risks burned in some random Chinese factory vs. ones supplied by Dell or MS. The difference is a matter of provenance, it's the guarantee that the contents are legitimate unaltered copies of the software.

    7. Re:Two scenarios here: by Darinbob · · Score: 2

      The courts have a ignorance factor. They are not experts and instead rely upon expert witnesses. The problem here is with them granting extra credibility to the Microsoft witnesses.

    8. Re: Two scenarios here: by b0s0z0ku · · Score: 2

      WAS he actually putting altered software on the disks? If not, then there is no functional difference between the MS/Dell disks and what he was producing.

      Nah, fuck everyone who's involved in this railroading. Do you really want to pay taxes to jail someone who didn't harm anyone? Ironically, his actions actually saved MS some bandwidth.

    9. Re:Two scenarios here: by thegarbz · · Score: 1

      The courts have a ignorance factor.

      For technical arguments I would agree, but this wasn't decided on anything technical, but rather contractual. It's literally the core business of the courts to rule on cases of licenses and contracts all written in their own very nasty form of legalese.

      If the courts are to blame I'm more inclined to think that the Microsoft legal team stacked the deck in the license agreement somehow, rather than pure ignorance.

    10. Re: Two scenarios here: by thegarbz · · Score: 1

      The crime was attempting to pass off his own disks as Genuine

      Was it a disk? Did it contain the software stated? Don't butcher the English language any more than Microsoft's "Genuine advantage" team already has. Those disks were 100% genuine unless you can tell me that they either contained some nasty viruses instead of the promised software, or maybe they weren't discs at all but 45rpm singles cut down to fit in a CD case.

    11. Re: Two scenarios here: by Anonymous Coward · · Score: 0

      I think the bigger question is: why doesn't Microsoft just give these disks away at cost without licenses, instead of requiring a bundled license at $25 a pop?

      Yeah, tell me that Microsoft also isn't a "standard scumbag".

    12. Re: Two scenarios here: by DamnOregonian · · Score: 1

      The disks were absolutely 0% Genuine. You could argue that the content on them was Genuine, however.

    13. Re: Two scenarios here: by Anonymous Coward · · Score: 0

      The judge dismissed the defenders expert witness testimony, the guy who wrote the Windows for Dummies book.
      Their expert witness also made a show of demonstrating how the cd installs a 30 day Windows XP trial without typing the COA and pointing out how close to full functionality that actually is after 30 days.

    14. Re: Two scenarios here: by thegarbz · · Score: 1

      So they weren't actually discs at all, but pictures of discs?

    15. Re: Two scenarios here: by DamnOregonian · · Score: 1

      They weren't discs produced by the claimed producer. Why are you being obtuse?
      Is it an arguing tactic?

  12. Why didn't he just private label the disks? by Registered+Coward+v2 · · Score: 1

    He could have put his own label on them and then sold them as recovery disks. Given he was running a business already he could have asked his attorney how to label them to avoid any problems. A disclaimer they were recovery disks and not provided by MS or Dell? OTOH, 15 months is an over reactions well. He admitted to copyright violation by copying Dell's trademarks, a fine would be more appropriate for importing fake goods than jail. It sounds like there is more to this story than the blog post presents. I wonder how his customers represented the disks to their customers? A repair shop could just a easily download and burn the programs to a DVD and not worry about a label beyond a Sharpie saying what version of the OS it recovers.

    --
    I'm a consultant - I convert gibberish into cash-flow.
    1. Re:Why didn't he just private label the disks? by Darinbob · · Score: 2

      The problem was with importing the disks. Sure, he did this to save money so that they could be sold for only $0.25. Seems like a good idea at the time. The snag though is if there were trademarks being imported from China then it's a crime (thanks to the vast armies of lobbyists). If he had these disks made in the US then it would have been only a civil matter and not a criminal one.

    2. Re:Why didn't he just private label the disks? by Registered+Coward+v2 · · Score: 1

      The problem was with importing the disks. Sure, he did this to save money so that they could be sold for only $0.25. Seems like a good idea at the time. The snag though is if there were trademarks being imported from China then it's a crime (thanks to the vast armies of lobbyists). If he had these disks made in the US then it would have been only a civil matter and not a criminal one.

      Yes, that was stupid on his part but had he not made them look like genuine Dell recovery disks he wouldn't have had a problem. I don't understand why he didn't use his own branding, the disks would have worked the same and the whole counterfeit trademark issue goes away.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    3. Re:Why didn't he just private label the disks? by DamnOregonian · · Score: 1

      I don't understand why he didn't use his own branding

      You don't? To defraud the people receiving the discs... He literally admits to it in the emails.

    4. Re: Why didn't he just private label the disks? by Anonymous Coward · · Score: 0

      Actually these CDs were meant for refurbishers to give out to customers alongside the laptops so that the customers had it down the road if they need it, or generally people with Dell laptops in need for repair. Refurbishers used self burned versions but you couldn't give customers that, they were untrustworthy and need to have the proper labels Dell, Microsoft, Windows XP so people know it's for this laptop, it matches the sticker.

    5. Re: Why didn't he just private label the disks? by Anonymous Coward · · Score: 0

      He had no control over how these cds were represented to the customer that was all his US partner turned prosecution Bob Wolf, who also provided the modified emails and fake receipt.
      And that guy got 6 months house arrest.

    6. Re:Why didn't he just private label the disks? by Registered+Coward+v2 · · Score: 1

      I don't understand why he didn't use his own branding

      You don't? To defraud the people receiving the discs... He literally admits to it in the emails.

      I get that; I was wondering because anyone with pulse should realize that is a bad idea. He could have one that an avoided all the trouble and still sell them for 25 cents; that's why I have little sympathy for him.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    7. Re:Why didn't he just private label the disks? by DamnOregonian · · Score: 1

      Same. I'd have a lot more sympathy if he was just a dude producing copies of freely available content (even though technically in violation of the law) than someone who was trying to make perfect replicas of a good that carries an assumption of authenticity with it.

  13. The real lesson by Anonymous Coward · · Score: 4, Insightful

    You use windows, go to jail. If he used linux he wouldn't be going to jail.

    1. Re:The real lesson by DamnOregonian · · Score: 1

      Very true. But the copyleft license provided with Linux, and your (licensed) right to redistribute it, is enforced by the laws in play here.

    2. Re:The real lesson by Anonymous Coward · · Score: 0

      You use windows, go to jail. If he used linux he wouldn't be going to jail.

      Yes, avoid Microsoft whenever possible is my take-away from this whole fiasco.

  14. OH SHIT!!! by Anonymous Coward · · Score: 0

    he was making copies of operating system discs for financial gain. This is the exact reason the laws were written.

    Do you know how many copies of Red Hat Discs I've made over the years! And I've SOLD THEM!

  15. Re:Sigh by Anonymous Coward · · Score: 2

    He sold them at near cost, 25 per disc, for a software that is entirely useless without a valid license already, for people who don't have a recovery disc (though they could've just gotten it themselves online for free, but hey, not everyone is tech savvy, hence the need for people like him to provide said discs)
    If microsoft cared about customers, they would keep offering downloadable ISOs of their discs on their site, long after the support for it is over.

  16. Re:Sigh by ArchieBunker · · Score: 0

    Price doesn't matter as the content was not his to license in the first place.

    --
    Only the State obtains its revenue by coercion. - Murray Rothbard
  17. Re:Couldn't this have been a revenue opportunity f by Darinbob · · Score: 5, Insightful

    There is a snag if you've got an old computer with a broken OS and no way to connect to the internet. The recovery disk helps with that. Upgrading to Windows 10 is impossible on most of the computers, and even if it weren't you have no OS to download the files to attempt to upgrade. So a recovery disk is the logical and seemingly legal way to do so.

    However, Microsoft says these are "lost sales". The only logic where this makes sense is if they consider a user staying with an older product instead of throwing away the computer and getting a new one with a new OS pre-installed. Ie, being able to repair the computer.

    Microsoft wants people to upgrade and is desperate enough for this that they're willing to let someone go to jail rather than allow broken computers to be fixed.

  18. Re:Sigh by Darinbob · · Score: 1

    These discs did not have an operating system on them. They were copies of a restore disc which is freely available online from Microsoft and most major computer vendors. You can get them trivially over the internet, unless of course you have a broken computer. The discs he was selling was for $0.25, which is essentially the cost of the disk itself with no profit.

    This is not at all the reason that copyright laws were written. And besides the case was mostly about trademark and not copyright. Yes, he made a mistake, it's worthy of a lawsuit but not jail time.

  19. Re: Sigh by Type44Q · · Score: 0

    Who made the content available to the public? That's what I thought.

  20. Re:Couldn't this have been a revenue opportunity f by mikael · · Score: 2

    That's what the smartphone companies do as well. I was in Silicon Valley where the CEO's complained about the "mend and make do" World War II mentality of their customers IT departments. To them, having to support old hardware was holding back software and hardware development as well as sales of new hardware.

    --
    Vintage computer adverts: http://www.vintageadbrowser.com/computers-and-software-ads
  21. Re:Sigh by Anonymous Coward · · Score: 0

    "Price doesn't matter as the content was not his to license in the first place."

    This means you're doing the exact lie that this article is getting at. Your statement was "for financial gain" which is a gross misrepresentation of the situation, to the point of being a lie.

  22. Re:Sigh by UnknownSoldier · · Score: 1

    > for financial gain.

    You keep using those words -- it doesn't mean what you think it means.

    By selling the CDs EACH for $0.25 ???

    /sarcasm Yup, he was RIPPING off MILLIONS from MS!!!

    $0.25 was basically to cover the cost of operations.

    Did he break:

    * The letter of the Law? Yes
    * The spirit of the Law? No.

    But let's keep being focused on the tree and missing the complete fucking FOREST -- all those computers that could be SALVAGED.

  23. GPL is slime... by Anonymous Coward · · Score: 0

    Those who defend the GPL against copyright violations are likewise SLIME.

  24. English, Jim - but not as we know it by Hognoxious · · Score: 3, Interesting

    Shortly after the Lundgren's was arrested

    You appear to have left out the thing, owned by one Lundgren, that was arrested.

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    1. Re:English, Jim - but not as we know it by WallyL · · Score: 1

      Replying to undo my accidental mod.

  25. Re:Sigh by Anonymous Coward · · Score: 0

    Not $0.25. For $25. And gone a great way to counterfeit the discs so they looked like original stuff from Microsoft.
    Coincidentally, MS sells the discs for the same price. This guy's ring matched the prices and looks so it doesn't look suspicious,

  26. Re:Sigh by Calydor · · Score: 1

    For the average person with only one computer it becomes REALLY HARD to get the CD image and burn it when your computer is already a brick.

    --
    -=This sig has nothing to do with my comment. Move along now=-
  27. Re:Sigh by Calydor · · Score: 1

    He wasn't selling licenses. He was selling CDs with data on them.

    --
    -=This sig has nothing to do with my comment. Move along now=-
  28. Re:Sigh by gweihir · · Score: 1

    He did not license it. The code did not actually work without a valid license from MS.

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  29. Bias Media by Anonymous Coward · · Score: 0

    When the title of a submission includes the word, "spin", can we really trust that it is unbiased?

    Otherwise, it's just an opinion piece masquerading as fact.

  30. Re:Sigh by Anonymous Coward · · Score: 0

    +1, the law is the law. Pretending it isn't because "no one got hurt" is absurd, and attempt to simply acquire things you do not own.

  31. Re:Sigh by Ramze · · Score: 1

    Copyright is a legal right created by the law of a country that grants the creator of an original work exclusive rights for its use and distribution.

    So, let me get this straight. He was selling (violation) copy-written works he'd copied (violation) to disks and distributed (violation) for a use not approved by the author of the work.

    He's not allowed to copy anything without written permission, not allowed to sell a copyrighted work without written permission, and also not allowed to distribute a copyrighted work without permission.

    No one disputes he was violating copyright law. The judge was sympathetic to what he was trying to do. The only thing people argued about was the value of the disks themselves in how they relate to damages to the copyright author. Microsoft wanted each disk to represent a potential lost license sale (as only they should be distributing restore disks and if people can't burn their own, they will have to buy a new license to have a functioning PC... or buy a new PC with a license), the defense wanted the disks to be worth zero or near zero. They ultimately were decided to be worth something in-between

  32. Re:Sigh by Anonymous Coward · · Score: 0

    And he didn't license the contents. He just provided a copy of a freely down loadable disc. He. Did. not. provide. a. license. key.

    Get that in your head. Microsoft may have won this on being technically right, that does *not* absolve them from being huge assholes in this case.

  33. Have you tried getting a recovery disc? by Anonymous Coward · · Score: 0

    Have you ever tried getting your hands on a legitimate recovery disc? You can't get them from Microsoft. If you try, if you're lucky enough to get a response, you'll be told to go to your computer's OEM.

    Have you tried you get a recovery disc from an OEM? Good luck finding information on their website on how to do it. If you do manage to find instructions, odds are you will not be able to use the obvious, simplest option: download and burn a disc. No, you'll have to jump through hoops proving that you qualify to receive a recovery disc, then you'll have to pay a stupid amount of money for something that cost them a few cents to make plus a stupidly expensive shipping charge. At best it should cost maybe $5 total, but I've run into demands for $30-$60. For one stupid disc containing software I've already paid for.

    Nobody wants to actually sell you a recovery disc. They want you to buy new, either a new license & disc or a new computer. If you insist on acquiring a recovery disc, you are heavily punished for it.

    What Lundgren did might have been technically wrong -- reproducing recovery discs without authorization -- but from a practical perspective it made perfect sense. Properly-acquired recover discs are a PITA to obtain and are stupidly overpriced when you can actually source them. Had he managed to acquire the recovery disc image as a burnable download, he would have been even more in the right were it not for the labels.

    He wasn't trying to make gobs of cash off his discs, he was trying to keep perfectly functional computers out of landfills. The software for the machines was already paid for and licensed. Adding several tens of dollars to a computer for a 50-cent disc can make a difference to the people who would buy an otherwise-landfill-bound computer.

    Lundgren's likely right: he was nailed because he tried to make the labels look like the discs were the $60 ones that the OEM sells. Had he just labelled them "Eric's Recovery Disc" or "this disc was burned from a recovery image downloaded from $OEM" he would have gotten away with a slap on the wrist at most.

    Microsoft screwed the pooch, as usual. They could have acknowledged what Lundgren was trying to do, chastised his methods and then provided him with legitimately-sourced discs that he would be required to give -- not sell -- to the people who needed them (never mind the landfill-bound waste of material because the contents of the discs would be identical to Lundgren's copies). They could have magnanimously blessed his actions and his discs. They could have done a variety of things to come out of this looking like good guys. But no, this is Microsoft. The haven't "won" unless they come out smelling like shit.

    Microsoft isn't necessarily in it to win. Microsoft's primary goal is to make sure everyone else loses. If they happen to be the last one standing, that's just a happy bonus.

  34. Re:Sigh by b0s0z0ku · · Score: 1

    There's nothing holy or sacred about the law in itself unless it prevents people from being harmed.

    Remember, the law used to support slavery, prohibit inter-racial marriage, and a whole host of other things we find abhorrent today.

    It's mostly a code designed to control people, written by a bunch of impotent old people for sale to the highest bidder ... I mean lobbyist. Don't mistake legality for morality.

  35. Re:Sigh by the_povinator · · Score: 1

    You say that MS sells those recovery disks for $25. I can't find any evidence for this assertion from searching online. Can you please provide a link?

    --
    The .sig is dead, and I believe I had a hand in killing it.
  36. Right of first sale / forced to rebuy keys is als by Joe_Dragon · · Score: 2

    Right of first sale / forced to rebuy keys is also part of this.

    At first they where saying each disk costed about $299 the full retail price of windows and then later MS said we just make refurbishers pay $25 an system for a new key.

    But lost in all of that is the MS clams that the paid for key is voided at or before it get's the to refurbishers. But in some cases systems going there may have an OEM key + an CORP site key on them.

  37. Misused trademark on custom-made disks by yours+truli,+X! · · Score: 1

    Say you were to sell a product, X. It's your product. It's good*, and you have an established client base. You distribute that product with a label, X. You have to control the distribution channels, so other actors do not take your product and modify it, potentially instaling backdoors. You do provide an image to download off your servers, complete with signatures, for free, to improve support for your customers. Someone takes your image, burns it to a disk, labels it as coming from you, and distributes it *to your customers!*. What's stopping that someone to modify the image, thus causing damage to the customers, which will identify it as coming from you. You will have to handle the fallout, spend time investigating the issue via your ticketing system, maybe send it to your forensics team to see if how if it was modified. You stand to lose customers and brand reputation by allowing unofficial distribution channels. What if that product was Kali, and someone would distribute it with the official logo to you, as coming from the team?

  38. Re:Sigh by Anonymous Coward · · Score: 0

    He sold, for 25 cents plus shipping, discs that a licensed reseller would pay $25 to Microsoft to sell, and would charge around $50 to the customer after shipping.

    He was profiting by cutting out Microsoft's $25 per copy. Doesn't matter if his profit was 25 cents or 25 bucks. He entered into business, buying and reselling thousands of discs at a profit without a license while cutting out Microsoft's ability to sell its product.

    Yes, the software is effectively useless without a license. Yes you can download the software for free if you know where to look, and there are providers who are even licensed to do this by Microsoft. But that is a benefit Microsoft chooses to provide for individuals, not businesses. Businesses are expected to pay. Lundgren committed copyright infringement every bit as much as DVD copiers do, even if the only people who download the DVD do so in order to quasi-legally format-shift their purchased product.

  39. Re:Couldn't this have been a revenue opportunity f by Solandri · · Score: 2

    Any computer that's old enough to have shipped with Windows 7 or older is likely using a processor older than Sandy Bridge (released 2011, vs Windows 8's 2012 release date). Sandy Bridge was the first time Intel took reducing power consumption seriously - a typical Sandy Bridge processor idles at around 35 Watts, with a peak power draw of around 90 Watts. Previous processors like Core 2 Duo would idle around 70 Watts, peaking at 100 Watts.

    By a remarkable coincidence, if you pay the U.S. average electricity price of 11.5 cents/kWh, if a device is left on 24/7 for a year, each Watt it consumes translates almost exactly into $1 for the year. So if you own a Core 2 Duo computer and leave it on 24/7 drawing 90 Watts for the system at idle, it will cost you an extra $65 of electricity than if you replaced it with a modern system which draws 25 Watts while idling. It doesn't take many years for that extra electricity cost to exceed the cost of a new computer.

    So as much as I love to berate Microsoft and Windows 10, the financial argument against them here is rather weak. Upgrading to a newer computer doesn't just make Microsoft and Intel more money. It also saves the buyer more money over the long term (via lower electricity bills).

  40. Re:Sigh by UnknownSoldier · · Score: 1

    Trying actually reading what ArchieBunker said

    ... he was making copies of operating system discs for financial gain.

    Eric was NOT doing it for financial gain. The proof was that he was only charging $0.25.

    It doesn't matter what Microsoft says they are worth. The price that Microsoft charges is completely irrelevant. HINT: It was a FREE download.

    > MS sells the discs for the same price.

    [[Citation]]

  41. Re:Sigh by Anonymous Coward · · Score: 0

    Oh fuck off you complete idiot.

    Get your head out of your ass. This guy had ZERO right to do what he did. None. Nada. Full fucking stop.

    And you say Microsoft won on a technicality? Go fuck yourself with a roll of copyright law so you finally get an idea just how wrong you are

  42. Can't have it both ways by Solandri · · Score: 1

    If merely copying the restore disks is copyright infringement, then there's no need for serial keys and the DMCA provision criminalizing bypassing encryption meant to protect copyright.

    If copyright is being protected by serial keys or DMCA-protected encryption, then copying the media without bypassing those copyright protection mechanisms isn't copyright infringement. All the person has done by redistributing such unaltered software is reduce the copyright holder's costs by doing the work of duplication and distribution for them.

    From what I've read, his "financial gain" was 25 cents per disk, designed to recoup his cost of optical media and burning the software to the disks. By comparison, most movie studios charge $7-$9 for replacement blu-ray disks, meaning the amount he was charging was completely in line with recouping his material costs.

    The only mistake he made based on my reading of the case was stamping the DVDs to make them look like authentic Microsoft disks.

    1. Re:Can't have it both ways by currently_awake · · Score: 1

      Copyright infringement is making unauthorized copies. Copyright protection mechanisms are irrelevent. Charging money for the disks is irrelevent. Copyright litterally means the legal right to prevent others from copying what you made.

    2. Re:Can't have it both ways by DamnOregonian · · Score: 1

      If copyright is being protected by serial keys or DMCA-protected encryption, then copying the media without bypassing those copyright protection mechanisms isn't copyright infringement.

      This is completely fucking false. You literally made it the fuck up. What is wrong with you?

  43. Who cares? by DMJC · · Score: 1

    The correct thing to do was put Linux on the computers and provide them as is. If people want Windows they can pay for it. It's people hiding the true cost of Microsoft's products that are helping keep their monopoly in place. Maybe instead of trying to cover up Microsoft's crappy business model they should have exposed it for the fraud it is. Want to run that 3 year old PC? That'll be $150 for a boxed copy of Windows. Want XP/7 on it? Sorry, Microsoft has decided you can't get it anymore. Guess you should have chosen a PC platform that supports your old applications.

  44. Re:Couldn't this have been a revenue opportunity f by Darinbob · · Score: 2

    Well, sure, if you leave it on all day. I think people on a budget who just don't run out and buy a new replacement aren't leaving the computers on all day. I think my mom has her laptop on maybe 1 hour a day or so.

  45. Re:Couldn't this have been a revenue opportunity f by Anonymous Coward · · Score: 1

    The cheapest computer I can find right now is $250. At $65/year, it would take 3.8 years to justify a new computer based on electricity cost - if it were left on 24/7 when not in use. We all have to make our own judgement calls, but that's a pretty long time for return.

  46. Re:Sigh by currently_awake · · Score: 1

    The copyright on a book is still valid if you can't read it. It's still a copyright violation if the copy won't play.

  47. Let me get this straight by Anonymous Coward · · Score: 0

    Guy is trying to give old laptops a new life
    Legally downloads recovery disks from the laptop manufacturer's website
    The activation codes are still on the old laptops
    Sells the recovery disks for 25 cents (cost of the cd) with the old laptops
    Microsoft says he's counterfeiting the OS

    They just don't want him to legally cut into their planned obsolescence business model with their old products.
    Sometimes cutting into a business' profits means you are competing with them. Sometimes it means you are stealing from them.

  48. Re:Sigh by ArchieBunker · · Score: 1

    You're an idiot. The contents of the disc are copyrighted by Microsoft. Only they are allowed to distribute the contents. It doesn't matter if he charged a penny, financial gain means money was charged regardless of his costs.

    --
    Only the State obtains its revenue by coercion. - Murray Rothbard
  49. Brick? by ArchieBunker · · Score: 1

    Brick, really? You're fucking dumb as well. The computer functions regardless if its running an operating system or not. Bricked means the hardware itself is no long responding to user input. Not booting windows is about as far from bricked as you can get.

    --
    Only the State obtains its revenue by coercion. - Murray Rothbard
    1. Re:Brick? by Calydor · · Score: 1

      Thank you for your very important definition, by which my car also still works when it's broken down but can be repaired by someone who knows how to do that.

      --
      -=This sig has nothing to do with my comment. Move along now=-
  50. Re:Sigh by ArchieBunker · · Score: 1

    The laws you speak of work to keep the GPL enforced as well.

    --
    Only the State obtains its revenue by coercion. - Murray Rothbard
  51. Re:Congratulations! by Anonymous Coward · · Score: 0

    YOU have won ONE BILLION dollars! - payable at the rate of US$0.01 per decade. Enjoy!

    $65/year is about $5.50 per month, a relatively small sum even for someone in pretty bad financial shape. OTOH even a cheap computer will cost a couple of hundred... in one lump. in many cases that ain't happening https://www.npr.org/2016/04/24/475432149/could-you-come-up-with-400-if-disaster-struck

    You can argue that no one should allow themselves to get into such a state, ( i might tend to agree...) but that is irrelevant. A significnt number of people are not in a position to junk old hardware even if they would prefer to do so.

    Sorry Boss, I can't complete my assignment; the boot drive got corrupted during a power failure, and I have no restore disks... Oh... ... pick my personal effects up at the security station .... yeah, I understand ...

  52. Re:Couldn't this have been a revenue opportunity f by Actually,+I+do+RTFA · · Score: 1

    According to legend, when Bill Gates when told China always pirates software, he said "How do we make sure they are pirating Windows [over some other OS]"

    --
    Your ad here. Ask me how!
  53. Its time for Microsoft to Go. by Anonymous Coward · · Score: 0

    I've absolutely had enough of their monopoly and abuse of power. They no longer deserve any respect in the deverloper community and we need a revolution in the computer Operating system and productivity market to sort this out. It's time developers started to back their products with ethical standards in the same way other corporations must made advancement in ecological standards. Microsoft must not be allowed to survive.

    The keys to destroying Microsoft :

    * Functional, secure and fair use OS. (Linux based, Desktop easy to use, and install new apps)
    * Office style product (OpenOffice) with Exchange equivalent. (not IMAP and not POP - a new mail standard for sync.
    * Netflix/Streaming and H264/Divx playback as standard. VLC might come to table on this.

    The deserve to die, and never come back. They must be destroyed. Just like Carthage lets sow salt into their earth.

  54. Re:Sigh by Anonymous Coward · · Score: 0

    These were not copyrighted works. They are "licensed" works. Its completely different. You do not "OWN" your operating system, you are licensed by the "owner" to use it.

    This is like a guy photocopying a business card so you can do business with Microsoft. They should be commending him for assisting them help their customers and increasing sales. Instead they act like assholes and should be rightly abused for doing so. Its time to take a stand against corporate aggression. They need to loose a FUCK TON of money and know it directly came from this instance.

  55. Nice timing by HeckRuler · · Score: 1

    How nice of you to come out and state these things are pretty much worthless AFTER he got sentenced. How very bloody convenient for you and your fucking profit margin you lying stinking sacks of SHIT.

  56. Know this Microsoft by Anonymous Coward · · Score: 0

    For my legal protection I will no longer reinstall your software and will only provide Linux to friends and family.

  57. Re:Couldn't this have been a revenue opportunity f by Anonymous Coward · · Score: 0

    At a savings of 65 dollars a year, I could run that Core Duo for 15 years before it would cover the cost of a new 1000$ business machine.

  58. Enough of the BS by Anonymous Coward · · Score: 0

    Let's say i've got an 9 years old Acer laptop which still functions absolutely fine, except the Windows OS which apparently needs a complete overhaul. Let's say i didn't receive a system recovery disk when purchased the laptop or lost it during the years, irrelevant.

    Dear Microsoft, please be so kind to point me in the right direction, where can i find a FREE recovery disk / system image for my computer? A download link will do it. Thanks

  59. Re:Couldn't this have been a revenue opportunity f by Anonymous Coward · · Score: 0

    So as much as I love to berate Microsoft and Windows 10, the financial argument against them here is rather weak.

    How about the angry outbursts over the horrible Windows 10 user interface that keep three people from doing their work for each user forced onto Windows 10?

    (I'm one of the Windows 7 users unfortunate enough to share an office with a Windows 10 user and I don't get much work done when he's at work).

  60. Re:Couldn't this have been a revenue opportunity f by Anonymous Coward · · Score: 0

    That only works if you are rich enough to buy a new computer from the start. Otherwise, they'd need to save up for a new computer *on top of* their electricity bill, which happens to be even more expensive than saving up before buying, which they don't have enough money to do.

  61. Re:Sigh by gweihir · · Score: 1

    An irrelevant example, as that is a completely different situation. Software is incomplete without the license. The book is complete.

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  62. The Return of Feudalism by Anonymous Coward · · Score: 0

    Feudalism has returned. Only instead of nobility that controlled the land needed to make a living, our overlords are now billionaires who control all the tech crap we have allowed ourselves to become dependent on.

    The future is looking an awful lot like a dystopian sci-fi story.

  63. Don't want to get sued? Don't use Microsoft's prod by Anonymous Coward · · Score: 0

    Don't want to get sued?
    Don't use Microsoft's products.

    Simple.

  64. the hate is real by Anonymous Coward · · Score: 0

    Did anyone bother looking at some of the evidence from the case?

    https://blogs.microsoft.com/on-the-issues/2018/04/27/the-facts-about-a-recent-counterfeiting-case-brought-by-the-u-s-government/

    The guy is a slimeball, intending to profit from doing this, and trying to set it up on a very large scale (also with other software). Pretty eye-opening stuff if you bother to read before forming an opinion.

    Almost enough to make you feel sorry for microsoft.

  65. Re:Couldn't this have been a revenue opportunity f by DamnOregonian · · Score: 1

    $65?
    Yes it does?
    One could argue it wouldn't even pay for itself in the time it took to become obsolete...

  66. Re:Couldn't this have been a revenue opportunity f by DamnOregonian · · Score: 1

    The one problem I always had with that legend was... what other OS would they be pirating?

  67. Re: Sigh by DamnOregonian · · Score: 1

    That's hardly relevant... The software is provided for free by the copyright holder under the condition that they not distribute it (particularly using disks fraudulently depicted as theirs)
    Your snark only veils ignorance in this instance.
    Dislike it all you want, but MS was the copyright holder, and they have the right to determine how *every* *copy* of their software is made and distributed, fair nose notwithstanding, and this quite clearly wasn't that.

  68. Re: Sigh by DamnOregonian · · Score: 1

    *fair use

  69. Re:Sigh by DamnOregonian · · Score: 1

    CDs with licensed data on them. He was not authorized to re-license the copies of that copyright dated to other recipients. He did so regardless. He then also violated trademark law, and committed fraud. He was fucked 5 ways from sunday. I don't get why people are trying to defend him.

  70. Re:Sigh by DamnOregonian · · Score: 1

    Perfect example, actually.
    The software is entirely complete without the license, you simply can't use it.

  71. Re:Right of first sale / forced to rebuy keys is a by DamnOregonian · · Score: 1

    First sale doctrine only comes into play if the 80,000 disks he sold were purchased by him with a legitimate license to have that copyrighted material.
    The right of first sale does not give you the right to make 80,000 copies of something you had a license to use.

  72. Re:Sigh by Anonymous Coward · · Score: 0

    Copyright is a legal right created by the law of a country that grants the creator of an original work exclusive rights for its use and distribution.

    So, let me get this straight. He was selling (violation) copy-written works he'd copied (violation) to disks and distributed (violation) for a use not approved by the author of the work.

    He's not allowed to copy anything without written permission, not allowed to sell a copyrighted work without written permission, and also not allowed to distribute a copyrighted work without permission.

    No one disputes he was violating copyright law.

    That's incorrect. He was NOT violating copyright law, he was infringing a copyright, but doing it in a manner consistent with "fair use" rights. An infringement of a copyright done as an exercise of "fair use" rights is explicitly permitted by US law, and is NOT a violation of the law. In fact, it's appropriate to view as slander or libel claims that an exercise of "fair use" rights is a violation of the law.

    Fair use rights exist in US copyright law as a consequence of the 9th and 10th Amendments in the US Bill of Rights - and hence any law or precedent that would disallow the application of fair use rights to this case is an illegal violation of the Bill of Rights. Simply put, the Bill of Rights is the highest law in the land - superseding even the pre-Bill of Rights Constitution. Any action taken by any legal professional to the contrary (including judges, even at the Supreme Court level) is a violation of the oaths they swear to uphold the law, and the constitutional requirement of good behaviour.

    Receiving money for doing copies as an exercise of "fair use" rights is permitted, and does not rule out a finding of fair use. Further, the exercise of "fair use" rights is not and can not be considered counterfeiting.

    In this case, the facts presented so far suggest that any court with integrity would in fact come to the conclusion that this was fair use: the disks were being sold for a trivial amount, and Microsoft no longer sells these disks. That is the key fact. If Microsoft wanted to prevent third parties from doing this, they should have kept these disks in print, and failure to do so is certainly sufficient to deny claims from them or any party (including prosecutors) that this is not a fair use right.

    There should have been no criminal action here on a copyright basis. Printing labels is a separate matter: a trademark law issue and possibly a false advertising or fraud issue, but not a copyright issue. However, the finding of "fair use" rights should provide significant protection from other charges: a right can not reasonably be said to exist if the ordinary exercise of that right is threatened by civil action or criminal prosecution (if it could, we would have a contradiction in the law, and contradictions in law always involve unethical practice of law).

    I don't have enough facts to know whether there are in fact other issues, but at most, this should be a minor criminal matter, depending upon whether or not actual misrepresentation of the content occurred, certainly not a major felony. The actual copying and distribution of those copies should not be an issue at stake.

    This seems to be yet another situation where US law somehow mysteriously works out in favour of big corporate interests, the interests of the wealthy, and concentration of wealth at the expense of society (copyright law has been clearly established as one of the factors leading to economically unhealthy levels of concentration of wealth in the modern US economy).

    Strange how often that seems to happen. It's almost as if the USA has a system where bribes (disguised as campaign contributions) are paid to the politicians who select judges, leading to the selection of judges with ethical conflicts of interest.

    Further, the fact that US copyright law has been shown to have serious legal and governmental ethics problems - no reasonable person can deny this, or t

  73. Re:Sigh by gweihir · · Score: 1

    So for your "perfect" example the customer can get access bu changes on his side, while in the real case only the manufacturer can make access possible.

    Are you mentally challenged?

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  74. Re:Sigh by DamnOregonian · · Score: 1

    I am not. But I suspect I understand copyright, and you don't. Also, English.
    You're arguing that since the code did not have a key, it was not covered under copyright.
    Person who replied to you is arguing that copyright exists, whether or not you can use the copy.
    He's right, you're wrong. It's pretty simple really. Your reaction is making it clear who has the mental deficit here.

  75. Scum by Anonymous Coward · · Score: 0

    Lock is pirating ass up forever. Itâ(TM)s what he deserves.