Business

Microsoft sues over 'conterfeit CDs'

SOFTWARE giant Microsoft is suing Comet, an embattled UK electricals chain, over its alleged creation and sale of counterfeit Windows and Vista recovery CDs.

But Comet, which is being sold by its parent Kesa Electricals for (pounds sterling)2 to the investment firm Opcapita, rejected the accusations and said it has "a good defence to the claim and will defend its position vigorously".

Microsoft's lawsuit relates to Comet selling more than 94,000 of the recovery discs, which enable users to reinstall software they had purchased with computers, for £14.99 ($22.66) each between March 2008 and December 2009.

The retailer, which has more than 240 stores, used a third-party manufacturer to produce the discs at a factory in Hampshire.

However, it is thought that Comet generated revenues of less than £1m ($1,512,021) from the discs during this period. This suggests the scale of Microsoft's legal claim will be relatively modest.

David Finn, the associate general counsel for worldwide anti-piracy and anti-counterfeiting at Microsoft, said: "Comet produced and sold thousands of counterfeit Windows CDs to unsuspecting customers in the UK. Comet's actions were unfair to customers."

It is understood that Opcapita, which is expected to complete its acquisition of Comet early next month, was aware of the lawsuit during its due diligence.

Comet said it had "sought and received legal advice from leading counsel to support its view that the production of recovery discs did not infringe Microsoft's intellectual property".

Topics:  microsoft




Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Bronwyn Bancroft’s Colours of Australia

Artist Bronwyn Bancroftin front of one of her works in her exhibition at the Grafton Regional Gallery Colours of Australia.

Colourful Australia opened at the Grafton Regional Gallery.

It's time to bring out the winter woolies

Grafton's Clarence St shrouded in fog this morning. Photo was taken slightly after 8am.Photo Matthew McInerney / Daily Examiner

Cooler overnight temperatures here to stay

Pair paddles 60km to highlight depression

DETERMINED: Will Brighton and Todd Ives in Yamba during their 60km paddle from Woody Head to Wooli.

Will Brighton and Todd Ives share rewarding experience on the water

Latest deals and offers

Bronwyn Bancroft's Colours of Australia

Artist Bronwyn Bancroftin front of one of her works in her exhibition at the Grafton Regional Gallery Colours of Australia.

Artist Bronwyn Bancroft's exhibition Colours of Australia is introduced by her...

Malcolm Turnbull and Barnaby Joyce tour Rockhampton sweet potato farm

Prime Minister Malcolm Turnbull and Deputy Prime Minister Barnaby Joyce visit a...

Men's Shed possum boxes

(back l-r) David Abrahams, Frank heppell, Warren Moss, Kevin Wtkins and (front) Darcy Knight with some of the possum boxes the Grafton Men's Shed are making for the new highway construction.

Grafton Men's Shed members have made 65 possum boxes for Eco Logical Australia to...

Perfect time to invest in Northern Rivers property

The Northern Rivers rental market is tighter than Sydney making it the perfect time for investors to get better returns out of property than superannuation or banks deposits.

Low interest rates and tight rental market are prime time to invest