Symantec Takes Measures to Combat Piracy

The security vendor stepped up efforts to combat the illegal copying and distribution of its products earlier this year after realizing that the problem was growing exponentially, said William Plante, Symantec's director of worldwide security and brand protection.

"The Symantec brand is the most counterfeited brand out there today," he said. "We talk to our counterparts at other organizations. They're not facing the same problem we are."

The piracy of Symantec products such as Norton SystemWorks and Norton AntiVirus exploded after the release of Microsoft XP, which is embedded with a digital rights management solution, Plante said. "Counterfeiters looked around for a company without digital rights management, and that was us," he said.

In a U.S. study released in October, the Business Software Alliance estimated that piracy cost the packaged software industry $5.7 billion last year.

"Without a doubt, the problem has gotten significantly worse over the last year, and certainly over the last three months," said Peter Beruk, director for antipiracy programs at Network Associates, Santa Clara, Calif.

Software piracy tends to go in cycles depending on the economy, he said. In a down economy, the problem increases as some businesses and consumers look to cut corners. Network Associates' McAfee VirusScan and Sniffer network management products are favorite counterfeit targets, he said.

In November 2001, police seized counterfeit computer products and software valued at nearly $75 million, including 600,000 units of counterfeit Symantec software. Lisa Chen, who pleaded no contest to one count of failure to disclose the origin of a recording of a product in the case, was sentenced to nine years in California state prison without probation. Restitution was set at $98 million.

It was at the time of that seizure that Symantec realized it had a problem, said Plante, who was working as a consultant for Symantec when he was hired last March to work full-time on the piracy problem.

Not only were a lot of counterfeit Symantec products being produced, but their quality was so high that it took a manufacturing expert to recognize the difference, he said. What's more, the company was getting questions from channel partners that received spam touting Symantec products at steep discounts.

Symantec realized that it needed to create a brand-protection force. The company assembled a team to educate channel partners and the public about the problem. Other members of the task force, including a former Los Angeles police detective, investigate and track down counterfeiters.

Symantec also is working to incorporate a digital rights management solution into its products, said Plante.

Plante said there are a few telltale signs resellers can look for to identify counterfeit products. "If a VAR receives a sleeve only,no box,then right off the bat it needs to be viewed with suspicion," he said.

And if the deal sounds too good to be true,such as a 60 percent discount,then it probably is, Plante said. VARs that have any questions about the legitimacy of a product can contact Symantec, he said.

Andrew Brinkhorst, director of the IT security practice at AdvizeX Technologies, a Cleveland-based solution provider, said he agrees that software piracy is a significant issue for the industry. However, he added that he hasn't seen evidence of customers misusing or abusing software licenses in general.

"Digital rights management, if well-executed, could be a benefit for both the customer and the software vendor," he said. "The key will be striking the balance between usability,such as ease of installation,and providing the control necessary to reduce license abuse."