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Find the fake

One of these software packages is genuine, theother is counterfeit. Can you tell the difference? Pick the wrong one, and you could end up with software on your computer you never intended - and if you own a small business, you could be sued.

By DAVE GUSSOW
Published September 22, 2006

Which one's fake?

If you guessed this package had the counterfeit software it was the one on the left, congratulations - you were correct.

Most likely, you were also lucky. It's possible to hold both packages in your hands, examine them closely and still not be able to tell which one actually came from Microsoft.

So, how can you be sure you're getting the real McCoy? Microsoft offers these tips:

Are you buying from a reputablereseller?

Protect yourself from purchasing counterfeit software by buying from resellers who sell only genuine Microsoft software. Locate a reputable reseller using local resources such as the Chamber of Commerce, Better Business Bureau and consumer publications.

Is a Certificate of Authenticity label included?

A Certificate of Authenticity is a label that helps you identify genuine Microsoft software. Retail Microsoft software ships with a COA affixed to the outside of the packaging. If a COA is not present on the packaging, then it is not genuine software and is not properly licensed. A COA should never be purchased without the software it authenticates.

Is a Hologram CD or Recovery Media included?

Many Microsoft products ship on Hologram CDs in order to protect against counterfeiting. A Hologram CD features a holographic image over the entire surface of the CD. This holographic image is part of the CD itself; it is not a sticker.

Are the product packaging and documentation high quality?

From our example, you saw that some counterfeiters can provide packaging and documentation almost indistinguishable from the genuine article. Often, that is not the case. One of the clearest indications that you are purchasing genuine Microsoft software is professionally produced packaging and documentation.

Is an End-user License Agreement included?

If you accept its terms, the EULA gives you permission to use the software, grants you some additional rights, and imposes certain restrictions on your use of the software. The EULA includes the "Grant of License" section, which describes how you may use the software.

The packaging looks identical. One contains a legitimate copy of Microsoft's Windows operating system. The other is counterfeit.

To almost any eye, though, figuring out which is which is almost impossible. And not knowing the difference could be costly to consumers.

Pirated software can contain viruses and other malicious code that can damage computers or open up personal data to identity thieves. It may appear to be a "bargain," but it has costs. "We want people to know that they need to be wise consumers," said Mary Jo Schrade, senior attorney for Microsoft.

Within the past week, Microsoft filed 20 federal lawsuits against companies it says were selling counterfeit copies of Microsoft software. Five of the suits were against Florida companies, including HecsPC.com in Port Richey. HecsPC.com could not be reached for comment.

In many cases, though, consumers won't know they've been duped until after the purchase. One technique used by counterfeiters is called "hard disc loading." In that case, a company may take one copy of the counterfeit software and load it on multiple machines.

Among problems with preloaded software is that consumers may not know it's a problem until they try to register it, find that they can't get critical updates or have malware planted from the get-go.

The shrink-wrapped packages are almost indistinguishable, and consumers can't tell it's pirated until after they open it. The key is in the hologram: If it's genuine, the hologram is burned in to the disc. If not, consumers can run their finger from the clear center of the disc to where the hologram begins.

The counterfeit is likely to be on a mylar sheet glued to the disc, Schrade says.

"Consumers can be ripped off, definitely," she said. "What we tell consumers who report this to us is that they can go back and get their money back from where they bought it."

As part of this round of investigations and lawsuits, Microsoft also did a forensic analysis of the bogus discs. In a batch of 348 discs, a third would not install and 43 percent included code that didn't belong in Windows.

In a batch of 228 discs, 66 percent had non-Windows code, and of those two-thirds, more than 40 percent had illegal product keys, tampered code or hidden code.

The companies named in the lawsuits received warning letters from Microsoft and were sued after they continued to sell counterfeit software, Schrade says. Damages can run $150,000 for each copyright violation and up to $1-million per trademark violation.

Schrade says the counterfeit trade also hurts legitimate businesses that are undercut on prices. And consumers go for low prices.

"If you go to a place where you look at software, and see it on the Internet advertised for a much lower price," Schrade said, "I would hope that having this awareness would keep people from buying this."

Dave Gussow can be reached at dgussow@sptimes.com or (727) 445-4165.

[Last modified September 22, 2006, 12:54:04]