2011 Top 10 IP Cases in China’s Software Industry:the ninth

Key point: enterprise end users using pirated software
 
Using 42 Pirated Microsoft Software, Newsmy Deemed as Constituted Copyright Infringement

Case summary: Beijing Newsmy Ideal Digital Technology Co., Ltd. (Newsmy) is an influential hi-tech company in China. In December 2009, Microsoft filed a complaint with the Beijing Culture Law Enforcement Agency, claiming that Newsmy was using several versions of pirated Microsoft software. The Agency therefore delivered an administrative penalty decision in July 2010, requiring Newsmy to stop the infringing activities and pay Microsoft 26,000 yuan in compensation. However, Newsmy continued its infringing activities afterwards. After several failed negotiations, Microsoft brought a lawsuit against Newsmy in Beijing No.1 Intermediate People’s Court. On January 18th, 2012, the court made the first instance decision, holding that the defendant constituted copyright infringement by using 42 sets of pirated Microsoft Windows and Microsoft Office software. The court demanded that Newsmy should stop infringing immediately and compensate Microsoft 410,000 yuan (including litigation fees).
 
Expert comments: This is the first time that Microsoft brought a lawsuit against an enterprise end user of pirated software.
 
Enterprise end users using pirated software are the most commonplace form of infringement. Purchasing a set of official software only entitles the user to install them on one computer. If the user installs them on more than one computer, the conduct is a violation of the license agreement, and therefore constitutes copyright infringing.