Confed-ITA and Microsoft join hands to prevent piracy

Chennai

August 22nd, 2007

Confed-ITA, an apex body working for the common benefit of channel partners
across Tamil Nadu heaved a sigh of relief on August 14 after their meeting with
Microsoft representatives in Madurai. "This was the second round of
meetings between the two, after the first one in Coimbatore in May 2007, when
Microsoft has promised that certain key issues bothering the channel would be
addressed," said a relieved Karthik S, President Confed-ITA. Representing
Microsoft were Brain Campbell, Director, Genuine Software Initiative, Danny
Chaturvedi, OEM Head, George Mathew, Regional Head and Satish Pokhriyal, Legal
and Corporate Affairs.

"Channel partners lack knowledge of upgrading Microsoft's new products,
and there is no awareness among the partners in terms of license and OEMs.
Adding to the agony, raids were conducted on channel partners by Microsoft's
outsourced security agencies, which imposed huge and unbearable fines. Partners
were also threatened of being taken to court and none of the agents or
distributors of Microsoft stood with the channel. Now we have been able to voice
all our demands in the meeting and hopefully will get desired solutions in time,
said PN Prasad, VP, Confed-ITA.

"Many unregistered partners are getting into PC assembling and software
solution installation business. They are turning out to be the major source of
pirated software. By default, pirated software users are also increasing as the
software is offered at very low cost, and at times even for free. Over all, the
piracy business is booming but only channel partners are being accused of
running this business. Even state government owned computers are being run on
pirated OS. The prime reason for this is the price of Microsoft OS and Office
tools. We have urged Microsoft to look into the price aspect also," Prasad
added.

"In our memorandum to the representatives, we have urged Microsoft to
collect a certain amount from the student community annually, instead of asking
for a huge amount for the license and registration of products. Most of the
pirated versions are used and circulated by the student community. Their
expectations are very high, as they feel that the entire range of software
available in the market has to be installed on their system free of cost while
delivering the PCs. When the dealer refuses or alerts them about OEMs and
licenses, he loses his costumer," said Muthuswamy, Secretary, Confed-ITA.

Muthuswamy informed that Microsoft had agreed to create awareness on the usage
of licensed products to end costumers and crackdown on unofficial software
solution installers with the help of the association. "They have also
promised to refund the fine amount collected from channel partners, and to issue
license to those who did not possess it," added Muthuswamy.

Speaking about the success of the meeting Karthik remarked, "We cannot
expect things to happen on the first strike itself. The ultimatum is to
crackdown on piracy and institute regularity in buying out a product, which
would be beneficial to both the buyer and the vendor. This meeting has been a
hope of achieving this ultimatum. The differences between the two sides have
been sorted out. This will help healthy trading in the market."

Decisions taken

MS to return fine amount collected from channel partners

To issue licenses to channel partners

Microsoft to create awareness on the usage of licensed products to end costumers

Crackdown on unofficial software solution installers with the help of the
association