Microsoft Sues Chinese Retailers for Selling PCs with Pirated Software

Photo: star.news.sohu.com

The Financial Times is reporting today that Microsoft (NASDAQ:MSFT) is bringing a lawsuit against electronics and appliance retailers Gome (HKG:0493) and Buynow, claiming that computers sold in their stores have pirated copies of Windows and Office pre-installed.

Microsoft’s CEO Steve Ballmer claimed last year that even though PC sales are about the same in the US and China, the company makes about only five percent of its US revenue in China as a result of piracy.

We’re not sure exactly how much Microsoft is seeking in damages from these two retailers, but the company had apparently tried to resolve the issue with the retailers before, but to no avail.

China has long been seen as a danger zone for intellectual property, particularly software. Beijing’s famous Zhongguancun reportedly saw four of its biggest electronics malls take steps towards eliminating software piracy just last month, with fines for any vendor caught selling pirated software, or selling computers with a pirated OS installed.

[Photo: star.news.sohu.com]