Microsoft Corp. (MSFT) Wednesday said it has filed lawsuits against eight individuals it claims sold counterfeit copies of Windows and Office on eBay Inc. (EBAY) sites.
The suits against eBay sellers in Arizona, Connecticut, Florida, Hawaii, Massachusetts, Nebraska, New York and Washington are the latest efforts by Microsoft to combat sales of pirated software, which accounts for an estimated 21% of software in the U.S.
Earlier this month, the Redmond, Wash., company announced the Genuine Software Initiative to coordinate its efforts against bogus software. In 2005, the company said it requested the removal of 50,000 auctions offering illegal versions of its products.
Matt Lundy, a Microsoft attorney, said in a telephone interview with Dow Jones Newswires that the company isn’t pursuing action against eBay and regularly communicates with the Internet auctioneer to halt sales of bogus software.
“We applaud Microsoft’s efforts and we applaud efforts by any brand owner that takes steps to protect its intellectual property,” said Hani Durzy, a spokesman for eBay. With 78 million listings at any given time, it’s impossible for eBay alone to police the items on its sites, he added.
The stemming piracy is crucial to Microsoft not because of lost revenue but because it needs to show its vast reseller network, which struggles to compete with cheap pirated software, that it’s protecting their interests.
For eBay, the suits are an unwelcome reminder of the risks associated with using the on-line auction service.
In April last year, eBay was sued by a group of New York buyers claiming they didn’t get refunds as promised by a merchant, and in February 2005, a lawsuit was filed related to charges that eBay policies inflated bidding.
EBay’s Durzy says that the company is well protected by legislation and legal efforts against the company haven’t been successful.
But the company is also keen to be seen as a safe place to do business and has established numerous rules and policies aimed at deterring fraud. It also restricts certain items from its auctions, including counterfeit products and software acquired as part of the purchase of a computer.

Posted: 03|16|06 at 8:38 am. Filed under: Auction News.