Microsoft Sues 20 More Resellers
The lawsuits, announced Tuesday, charged 20 companies in Connecticut, Florida, Georgia, Kansas, New Jersey, New York, Ohio, Oregon and Texas with distributing counterfeit software or engaging in hard disk loading, a practice of installing unlicensed Microsoft software on computers sold to businesses and consumers.
More than half of the lawsuits were filed against resellers in the South, including five resellers in Florida, four resellers in Texas and three resellers in Georgia.
Microsoft filed three claims in U.S. District Court in Orlando against Reyder Enterprises, doing business as Computers 4 Less; Silver Eagle Computers Inc., of Orlando, for alleged distribution of infringing Windows XP and Office 2003 Pro software; and Wholesale Computer, of Deland, Fla., also for alleged distribution of infringing Windows XP Pro and Office 2003 Pro software.
The software giant also filed claims in Tampa against HecsPC.com, of Port Richey, Fla., for alleged distribution of infringing Office 2003 Pro software, and in Miami against reseller EComp. Computers, for allegedly distributing infringing Windows XP Pro, Office XP Pro and Office 2003 Pro.
One system builder in the Orlando area said alleged counterfeiting and distributing of infringing software hurts "legitimate" dealers, especially as the PC selling climate continues to worsen.
"It's a real problem for us because it enables people to undercut us," said Glen Coffield, president of Cheap Guys Computers, an Orlando, Fla., system builder with retail stores. "There are are two types of guys out there, thieves and desperate people trying to hang on because they're getting killed by the number of $299 systems. There's a little bit of both going on but more thieves. It is a dire situation out there. I've never seen PC companies close at the rate they're closing, but Microsoft has every right to protect their IP."
Microsoft also filed claims against four resellers in Texas: ITQ Computers/One-Line, Houston, Texas; Computers and Laptop Fixture, Houston, Texas, Millenium Communications, Colony, Texas, and Computers Unlimited, Marshall, Texas, for allegedly distributing infringing Windows XP Pro and Office XP Pro software.
In Atlanta, Microsoft filed lawsuits in the U.S. District Court against Dalsand Computers, of Norcross, Ga., and GForce Computer Sales and Services, Douglasville, Ga., for allegedly distributing infringing Windows XP and Office 2003 Pro software. The software vendor also filed a lawsuit in the same court in Atlanta against Atlantatechnology, of Norcross, Ga., for allegedly distributing infringing Office 2003 Pro software.
Microsoft also filed lawsuit against five resellers in the Northeast, one in the U.S. District Court of Connecticut, one in the District Court in New Jersey and two in the U.S. District Court for the Eastern District of New York. The Redmond, Wash., software giant filed claims against Sumner Transatlantic, Fairfield, Conn., for allegedly distributing counterfeit Windows XP software and JFG Tek Computers, of Glendora, N.J., for alleged distribution of both Windows XP Pro and Office 2003 Pro.
In New York, Microsoft filed claims against GatecomUSA.com, of Flushing, N.Y., for allegedly distributing infringing Office 2003 Pro and against Unet Computer Inc., of Valley Stream, N.Y., for allegedly distributing counterfeit and infringing copies of both Windows XP Pro and Office 2003 Pro.
Contacted by phone, one executive who identified himself as Stefan at GatecomUSA, a 11-year-old online reseller, said he was "shocked" by news of the lawsuit but he did not want to comment until he reached Microsoft or Microsoft attorneys.
Microsoft also filed two lawsuits in Ohio, against CyberSolutions, in North Baltimore, Ohio, for allegedly distributing infringing Office XP software and ComputerMe.net, of Hamilton, Ohio, for allegedly distributing infringing and counterfeit Office 2000 software.
Microsoft also went after a reseller in its backyard -- Byte Me Computers of La Grande, Oregon, for allegedly distributing infringing Office 2003 Pro software.
Microsoft said it files such claims to protect its intellectual property and its honest business partners. Resellers say it can go either way.
"It's a double edged sword. Continued bad news about PC dealers is bad and may direct people to mainstream OEMs like Dell," Cheap Guys Computers' Coffield said. "But on the other side of it, if people don't like to deal with those companies, then its good for us."